venerdì 8 luglio 2011

cotton farmers suicide in India and global commodities problem

From the Corriere della Sera, the italian daily newspaper , of monday 08/21/2006, I read the following article "India, tra i contadini suicidi nelle coltivazioni di cotone. Il Governo -10 mila dal 1997-"; in India among the cotton farmers, 10 thousands persons since 1997, were found dead because of the decreasing costs of cotton on the financial markets and the use of Genetically Modified seeds.
The deaths were caused by suicides.
The collective tragedy was not considered a natural catastrophe but was linked with the level of family's debts due to the decrease of the price of cotton and GM products.

Today poor nations are hammered by food costs and water shortage; countries in short supply of water, including China will continue to boost food imports, draining resources in some of the largest agricoltural producers including U.S. and Brazil. Here the problem is not linked with genetically modified products, but with supply and demand. Its very hard to ship water and the best way to export water is trough food.
I don't know if the italian political class is aware of the problem of the price of commodities globally, in particular energy; but the free markets remain the best way to regulate the issue.
If you don't believe in free financial markets, you can believe  in  a five years plan, Joseph Stalin's style in other words "poverty for all or the equal distribution of poverty" like in a communist system.

Bibliography : "BOOM AND BUST, financial cycles and human prosperity"  2011, Alex j. Pollock, American Enterprise Institute.