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The US-Brazil Accord on Ethanol Is Good for GDP But Very Bad for Rural Poor PDF Print E-mail
2007 - March 2007
Written by Isabella Kenfield and Roger Burbach   
Tuesday, 20 March 2007 18:31

A peasant from Petrolina, Pernambuco, in the Brazilian NortheastDuring Bush's visit to Brazil thousands of poor, rural members of the international Via Campesina social movement and the Brazilian Movement of the Landless Rural Workers (MST) orchestrated massive, non-violent occupations of multinational agribusiness corporations throughout the country. Nine hundred women occupied the Cevasa ethanol distillery in São Paulo.

According to the press statement released by Via Campesina, the protest was against "the proposal by the United States government to benefit large ethanol companies in Brazil, which is not in the interest of the majority of the Brazilian population." Cevasa is the largest producer of sugarcane in Brazil, and last year 63% of its shares were bought by the US-based Cargill corporation.
 
Other occupations included paper mills in Rio Grande do Sul owned by Stora Enso Oyj of Finland, and Votorantin and Aracruz of Brazil. All of these actions were to protest the model of economic growth via industrialized agriculture for export.

The social movements and their supporters in civil society assert that while Brazil's agroexport boom may boost Brazil's GDP, it is increasing poverty and marginalization for the rural poor due to land concentration, environmental destruction, unemployment and labor exploitation.

According to the Via Campesina press statement, for every 100 hectares planted to sugarcane (from which Brazilian ethanol is produced) only one job is generated, while on a family farm 35 jobs are generated.

In Brazil, agribusiness is controlled by a handful of multinational corporations that are usurping more and more Brazilian territory, and expelling more rural poor to the already-swollen urban centers.

The occupations' organizers were careful to highlight that their critique is not of ethanol itself, but with the paradigm being imposed on the industry - large scale, industrialized production for export to the Global North (especially the US), entirely controlled by multinational agribusiness corporations.

At a press conference held by the Via Campesina, the MST, the Central Union of Workers (CUT), and the Catholic Church's Pastoral Land Commission (CPT), Bishop Tomás Balduíno said, "The pact between Brazil and the United States for the promotion of ethanol is sinister. It's just going to promote death, marginalization, poverty and the destruction of the environment because it defends the interests of large multinationals."

Ethanol is emerging as a way for powerful international capital interests to ally, merge and strengthen. João Pedro Stédile, of the national coordination of the MST and Via Campesina, declared, "Bush came to Brazil as a messenger boy for the multinational companies, the agribusiness companies, the oil companies and the automobile companies that want to control the biofuels."

George W.'s brother, Florida state Governor Jeb Bush, was recently appointed to co-chair the Interamerican Ethanol Commission (IEC), which has as its mission to "promote the usage of ethanol in the gasoline pools of the Western Hemisphere."

The other co- chairs are Roberto Rodrigues, President of the Superior Council of Agribusiness of Brazil and Luis Alberto Moreno, President of the Inter American Development Bank.

Formation of the IEC highlights the alliance being built between US and Brazilian petro and agro capital, and reveals why the current discourse of ethanol as a renewable and sustainable form of energy is cast in neoliberal language that ignores the disastrous impact this corporate model has on society and the environment.

The social movements and their supporters propose that Brazilian ethanol production should be in the hands of small farmers, as part of a diversified agricultural system in which local food production for Brazilians is prioritized, thereby assuring land, livelihoods and jobs for the rural poor. Brazil should focus on producing ethanol for its large internal market - not to sustain US consumption.

Yet despite the widespread protests and opposition by the very segments of civil society that helped bring Lula to power in 2002, and re-elected him for a second term last October, an accord between Brazil and the US has been signed for joint research and cooperation to increase ethanol production, export, and trade as a global commodity.

The accord indicates that Lula is cooperating with Bush and agribusiness in order to ensure the industry remains controlled by large capital interests while the Brazilian rural poor sink deeper into poverty.

"Today there is no more agrarian reform, there is agribusiness," said Bishop Balduíno. "Make no mistake, this accord will only benefit the multinationals and the elite."

Regardless, the voice of dissent articulated through the occupations by the Via Campesina and MST during Bush's visit garnered national and international attention and strengthened the resolve of the social movements. The MST is determined to challenge the Lula government and is stepping up its land occupations, including the seizure of lands that could be used for ethanol production.

According to João Pedro Stédile of the MST, "the Lula government is supporting the mode of agricultural production known as agribusiness that allies the landowners with the transnational corporations. This is going to provoke a popular reaction sooner rather than later."

Isabella Kenfield is an Associate of the Center for the Study of the Americas (CENSA) based in Berkeley, California. Currently she is a journalist living in Curitiba, Brazil and has written on social movements, multinational corporations and biofuels.

Roger Burbach is the director of the CENSA. He has written extensively on Latin America, including, "The Pinochet Affair: State Terrorism and Global Justice." He is also the co-author with Jim Tarbell of: "Imperial Overstretch: George W. Bush and the Hubris of Empire."



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Comments (12)Add Comment
MST is mass of maneuvering
written by Osvaldo Coelho, March 21, 2007
My God! I love the foreigners coming to live in my city Curitiba but we could do without Ms. Kenfield. She doesnt know that the MST is a mass of maneuvering of land owners who want to get rid of their land to be dionated to poor farmers but paid with the tax payer money!!!
Wrong Data
written by Sergio Kelner, March 21, 2007
The that delivrede by Via Campesina is verey underestimates (1 job generated for 100 hectares plnated) Brazil has 6,2 million hectares of sugarcane planted area. Using these numbers we would say that Brazil has only 62,000 workers in the sugracane fields. That´s absolutely wrong. Only in the state of Pernambuco, which accounts for 7% of sugarcane planted área there are more then 60,000 workers in the fields. The information must be properly checked.
The US-Brazil Accord on Ethanol Is Good for GDP But Very Bad for Rural Poor ???????
written by ch.c., March 21, 2007
Whoaaaaaaaaa !
To the knowledge of everyone except the article writers, Brazil consume locally 80 % of their ethanol !!!!
Why is then the accord so bad....when it was even worse earlier ?????

And to the knowledge of everyone except the 2 article writers, around 50 % of the sugar cane production, produces SUGAR, CONSUMED LOCALLY AND EXPORTED
TO MANY MANY COUNTRIES.....BUT NONE OR VERY LITTLE TO.......THE USA !!!!!!

No doubt that CENSA is one of those "study centers" hiding in fact they are paid propaganda from Brazil and Venezuela !!!!

Funny that these study centers did not even seem to know that 50 % of thje sugar cane production goes for sugar and that 80 % of ethanol produced in Brazil is consummed locally !!!!!

Eventually they may cross check what I am saying !!!!


Laugh....laugh...laugh !!!!
To Sergio Kelner !!!!
written by ch.c., March 21, 2007


You are dead right, these 2 journalists are worthless and totally ignorant.
Knowing too that 40 % of Brazil sugarcane is manually harvested, more than doubtful that there are only 62000 workers.

Better yet, in another article on this site published just a few days ago, mentions 400'000 workers...in SP state....ALONE !!!!!
Ethanol e o Futuro??
written by Rob Barone, March 22, 2007
It's REALLY simple ...
written by Mauricio (in latin based language), March 23, 2007
The poor will occupy the land to keep from being exploited, the government will side with the multinationals and the elite, they will attack the poor and remove them from the land, the poor will strike back and instability will result. Elite promises that their way is best ignores the clear trend of the GROWING NOT SHRINKING POVERTY ... Is the middle class whether Brazil or elsewhere growing or shrinking? SHRINKING. Is the wealth being spread around or consolidated? CONSOLIDATED. Is waste and inefficiency the norm or the exception? THE NORM. Why? It's the global (as evidence by the word MULTINATIONAL) insanity that's only going to collapse planet earth into an abyss and the elite ASSUME they would have amassed enough money and resources by that time to escape. As is the nature of insanity if the global economy collapses the money becomes worthless (i.e.,massive money to buy a loaf of bread) governments collapse and millions of war-lords become the new leaders of planet earth. YOUR GOVERNMENT AT WORK!!!! The world becoming ONE BIG IRAQ.
money becomes worthless (i.e.,massive money to buy a loaf of bread) ??????
written by ch.c., March 24, 2007
And if you are Brazilian, you know what it is !
- Have you not in around 70 years cut times 3 zeroes to your currency and 1 time devalued it by 75 %.....(just before you pegged your currency to the the US$)
YESSSSSSSSS YOU WOULD NEED 4000 TIMES 1 BILLION OF YOUR 1942 CURRENCY UNIT TO MAKE....1 reais ....today !!!!!
sounds impossible----but number is accurate !!!!
- Is not Brazil a country that had several times.....THOUSANDS OF PERCENTS IN THEIR ANNUAL...INFLATION RATE ?????
YESSSSSS....OF COURSE...AND DURING FAR LONGER THAN 1 YEAR ONLY !

Thus to whom want brazilians give a lesson, on that subject ????????
Dont look at the world, just look at your own not so distant....HISTORY !!!

laugh....laugh....laugh !!!!!
oooops...no luck today.......repeating.....
written by ch.c., March 24, 2007
- Have you not in around 70 years cut 4 times 3 zeroes to your currency and 1 time devalued it (by 75 %.....just before you pegged your currency to the the US$) ????
Yeah...
written by Gringo Stupid, March 24, 2007
... for every 100 hectares planted to sugarcane (from which Brazilian ethanol is produced) only one job is generated, while on a family farm 35 jobs are generated...

Problem is that all families from the farm want to move to the city favela, to listen to american rappers!!!
YEAH x 2
written by Get a life, March 25, 2007
Gringo Stupid


That would be "stupid gringo". Your alias has been breached. Your cover blown A BRASILIAN. Return to your favela and hope for another moment. This message will self-destruct in 5....4.....3.....2..... (WELCOME TO ORKUT)
Gringo estupido, estupido gringo!!
written by A Mexican., March 27, 2007
Shut up, you gringo estupido!! We know very well the reality of your country. The "katrina" in New Orleans showed to the world how you care about your poor and miserables.And the reality in your country is not so diferent from the reality in Brazil. The difference is that here it is showed and in your country it is hidden. Seen all those negroes in those conditions reminds me how hipocritas you are. Bye, and go to find enemies somewhere else. That is what you people do best.
...
written by Ric, March 31, 2007
Yes, we are very good at finding enemies. That´s one of the things we do best, finding enemies. Another thing we do very well is fezando pessoas bestas, ou abestadas, sem nem querer. Spank you.

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