-Caveat Lector-

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Dave Hartley
http://www.Asheville-Computer.com
http://www.ioa.com/~davehart

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On
Behalf Of Anuradha Mittal
Sent: Thursday, August 05, 1999 12:52 PM
To: [EMAIL PROTECTED]
Subject: IPS Wire story Food First-INDONESIA: Not Your 'Traditional' Famine

Copyright 1999, Inter Press Service
FOOD-INDONESIA: Not Your 'Traditional' Famine

WASHINGTON, Aug 2 (IPS) - Indonesia became the world's largest food aid
recipient last year in a "manufactured crisis" sparked by economic collapse
but exacerbated by misguided development policies, says a new report.

Food aid to the world's fourth most-populous nation should be severely
reduced "and redirected to truly starving countries . . . such as North
Korea," according to the South East Asia Food Security and Fair Trade
Council, a coalition of activist groups in the Asian region and the United
States.

The group, which sent an international team of aid and agricultural
experts to Indonesia earlier this year, concluded that Indonesia needs "not
food aid but economic and agricultural reforms of a fundamental kind." This
would create the "jobs and income that will enable them to surmount not
only hunger, but poverty," the report said.

"Indonesia is not suffering a critical food shortage in the traditional
sense," said Anuradha Mittal, report co-author and policy director at the
Oakland-based Institute for Food and Development Policy, also known
as Food First.

"Abundant food is available for those who can afford it, but few can due
to the economic collapse," Mittal said. "Yet the image of a food shortage
that can only be remedied with food aid continues to dominate."

The report, "Manufacturing a Crisis: The Politics of Food Aid in
Indonesia", accused the UN's Food and Agriculture Organization (FAO) and
World Food Program (WFP) of stoking donor alarm over Indonesia's food
situation by issuing "grossly mistaken" assessments of the country's
1998-99 rice shortfall.

The agencies, however, said they stood behind their figures.

Foreign grain began to pour into Indonesian warehouses on the strength of
numbers distilled by the FAO and WFP from Indonesian government data in a
process that activists characterized as doomed to repeat the failures of
earlier food-aid programs.

"Time and again we have found [food aid] to be a self-serving act on the
part of donor countries, in the guise of charity," said Peter Rosset,
co-author of the 1998 book "World Hunger: Twelve Myths". "Local food
production is undercut in recipient countries, as farmers cannot compete
with free imports and have to abandon the land," he said.

The report charged the United States, Canada, Australia and other donors
with seeking to open long-term markets for their surplus wheat and rice. It
assailed Japan for dumping excess rice stocks in the form of a "soft loan"
payable in kind within the next 40 years.

When it became clear that the influx of cheap food was not needed in much
of the countryside, aid officials diverted the flow to Indonesia's slums
"to pacify a restive urban population" and boost the ruling Golkar party's
standing in June's parliamentary elections, the report added.

The report drew fire from the FAO and WFP as being "a bit confused" and
"biased." Aid officials, in letters to the report's writers, bristled at
the accusation of complicity in government efforts to contain political
dissent and complained that they had been misquoted in the document. No
less controversial was the report's assertion that Indonesia's was "not so
much an emergency food crisis but a generalized crisis of development."

Viewed in the short term, the crisis stemmed from the massive flight of
foreign capital that was at the center of the Asian financial crisis of
1997-98. But the long-term culprits, according to the report, included an
"industry-first" development strategy and a "Green Revolution"
(chemically-intensive monoculture farming) approach to food
self-sufficiency.

Under the tutelage of international financial institutions, Indonesia had
long sought to harness local capital and attract foreign investors to
industrialize the country. Among other things, this meant manipulating
exchange and interest rates.

These measures "drew resources from agriculture to industry because
agricultural projects took a long time to yield a decent rate of return,
whereas urban investments, such as in real estate, yielded profits with a
quick turn-around time," the report said.

Furthermore, "a policy of providing cheap food was clearly designed to
subsidize industry by keeping the price of wage goods low for the urban
working class. However, this decreased the profitability of agriculture,"
contributing to a downward spiral of investment and productivity in the
country's farms.

Something had to be done, so Indonesia embraced the "Green Revolution"
and, in 1984, was deemed by the FAO to have achieved food self-sufficiency.
The picture never was very clear, however, because rice self-sufficiency
was taken to mean food self-sufficiency.

The "Green Revolution" forced rice on the many Indonesians who
traditionally had subsisted on corn, roots, or other staples - and in turn
forced a single model of wetland rice cultivation on geographically
distinct regions, some of which were unsuited to this type of farming.

As a consequence, differences in nutritional needs and status were glossed
over, as were local environmental conditions and bio-diversity.
Paradoxically, food and ecological insecurity worsened in parts of the
country even as more rice was produced.

"Thirty years of 'Green Revolution' has left many farmers dependent on
expensive external inputs of seeds, fertilizers and pesticides," the report
said. "The tragic results of this dependency became stark with the onset of
the financial crisis in late 1997."

Imports were limited for want of foreign exchange and fertilizer subsidies
were withdrawn, once again threatening agricultural production. Farmers
have been further imperilled by an influx of 2.3 million tonnes of cheap or
free emergency food aid from donor nations, the report asserts.

That aid effort should be redirected toward "truly starving countries" and
Indonesian food aid restricted to pregnant and nursing women and children
living below the poverty line, according to the report. In the longer term,
the country should revive its agriculture without again succumbing to the
ecological, economic and nutritional vagaries of chemically-intensive
monoculture farming. (END/IPS/aa/mk/99)


To order the orginal report, send a check or money order for $9.00 ($6.00 +
$3.00 s/h) to
The Institute for Food and Development Policy (Food First)
398 60th Street, Oakland, CA. 94618 USA

California residents add 8.25% sales tax
International orders must be prepaid in US dollars and require an additional
$1.00 for shipping
Credit card orders can be made by phone at (510) 654-4400
Or order on the web:
http://www.foodfirst.org/pubsorder.htm#IDR12


Anuradha Mittal
Policy Director
Institute for Food and Development Policy - Food First
398 60th Street, Oakland, CA 94618 USA
Phone: (510) 654-4400 Fax: (510) 654-4551
http://www.foodfirst.org

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