Specialization and Global Free Trade
The implications of implementing an agricultural system of specialized production in a global free trade market are currently perceived as
advantageous to all countries involved. It is an opportunity for the industrialized regions to expand their already flourishing markets as well as
create opportunities for the developing nations to create an industrialized production base with which they can develop their own economically
lucrative markets. Such a system is believed to insure the continued prosperity of the industrialized nations and allow the, so-called, third world to
rise to the standards of the north. Because of this widespread belief the pressure to adopt the values of specialized free trade agriculturally
“came from politicians, economists, and corporations that strongly believed in open borders as the means to prosperity. Opening domestic
agricultural markets, economists typically argue will help reduce hunger and poverty by stimulating investment in developing world agriculture and
generating new export revenue through greater access to first-world consumer markets” (Halweil 2002, 25). Because those who possess most of the
influence over the policy of our country were those in favor of adopting the industrial system, the industrial system is what we got.
The strength of these proponents belief in global specialized free trade can be seen throughout the modern era. The World Bank’s head economist,
Hollis Chenery, “defined ‘economic development’, in the late 1960’s and 1970’s, as the ‘set of structural changes required to sustain the
growth of output and respond to the preferences of society’” (Rich 1994, 194). What Chenery is basically saying, echoes Dr. Griswold’s
philosophy, that to continue to earn economic profits the modes of production will have to undergo an industrializing process to increase
productivity, as well as the development of a value-added industry to increase the profitability of products. This is a startling point of view whose
values can be seen as
“rooted in the Western Enlightenment, and include an eagerness to apply scientific, technological methods to increase material production as well as
a desire for institutions and cultural transformation that embody values right out of Max Weber—efficiency, frugality, orderliness, diligence,
punctuality, and above all, rationality in decision making liberated from tradition, custom, and group allegiances…Driving this project is the
allure of technology, the midwife of salvation through economic growth; growth in turn would be the foundation of national power and prestige” (Rich
1994, 201).
The zeal with which these proponents took to adopt industrialized agriculture can be seen in the World Bank and the International Monetary Fund’s
efforts to force structural adjustment loans on to the developing nations, loans which essentially require “the recipients to relinquish important
parts of national sovereignty, basically agreeing to revamp their economies into foreign exchange earning, export-oriented machines” (Rich 1994,
110). This is essentially the developed nations operating through powerful multi-national economic institutions, which are “liberated from
tradition, custom, and group allegiance”, to open all nations borders to the free flow of trade, with the ambition of generating unprecedented
economic gains, to fuel the worlds progress via modernization.
Specialization Policies Favor Corporations over Communities
Although the struggle to balance the opposing needs of agro-corporations and rural communities is still apparent in modern political discourse,
American policy adopted views, between 1920 and 1960, which grossly favored the corporations over the communities. The paradigm that was created in
this forty-year period regarded agriculture as part and parcel of the industrial economy (Thompson 2001, 220). This philosophy echoes the ideals set
forth by the former Yale President Dr. Griswold in his 1948 book, Farming and Democracy, in which he stated, “the promotion of a special land
tenancy and democratic or personal virtue [is] regressive, and [will] entrench a pattern of low productivity and poverty in rural areas”. What Dr.
Griswold is stating is that allowing the rural agricultural populations to continue to exist in the context that they did was unsuitable for
progressive economic growth. It was this mentality that small-scale sustenance farming was “regressive”, and that industrialization was
progressive, which shaped agricultural policy in the United States for the next 35 years (Thompson 2001, 220).
According to the USDA, between the years of 1985 and 2000 gross farm income grew from $161 in 1985 to $241 in 2000. (USAD 2004, 1). This is good for
those in favor of industrial agriculture because it serves as a justification that industrialization has the ability to stimulate economic growth and
growth in a countries GDP is considered to be the ultimate sign that a country is continuing to progress. So, this growth is cited as proof that
specialization is a progressive movement within agriculture. With this the argument for industrializing becomes utilitarian in nature, as was stated
in the Journal of Agriculture and Environmental Ethics, “industrial society is justified in light of its impressive capacity to generate benefits
for the majority” (Thompson 2001, 221). However, despite this economic growth that industrialization offers there remain many negative impacts that
are not fully accounted for. All of the impacts industrial agriculture has had in the United States are the result of the specialization according to
comparative advantage, which feeds the economic growth of the agribusiness corporations, at the expense of community level economics.
The scale of industrial agricultural is titanic in its proportions. There are many factors in the agro-economy that must work cumulatively to allow
industrial agriculture to perform its overriding function, which is first, the generation of massive commodities (food) for trade and Profit, and
second, the corporate consolidation of the agro-economy at large. Of these agro-economic factors four of are the most importance, they are: the
specialization of production, the energy-input industry, the processing industry, and government subsidies. Each of these aspects of industrialized
agriculture builds upon one another. Beginning with the specialization of production and ending with the support of government subsidies, creating a
system which farmers are drawn into, which eventually consolidates the profitability and control of their operations to the control of
corporations.
[edit on 30-7-2009 by Animal]


