Monday, April 21, 2008

If you wonder why there are food riots in Haiti

Look no further than Friedman-style disaster capitalism. In fact:
In 1986, after the expulsion of Haitian dictator Jean Claude “Baby Doc” Duvalier the International Monetary Fund (IMF) loaned Haiti $24.6 million in desperately needed funds (Baby Doc had raided the treasury on the way out). But, in order to get the IMF loan, Haiti was required to reduce tariff protections for their Haitian rice and other agricultural products and some industries to open up the country’s markets to competition from outside countries. The U.S. has by far the largest voice in decisions of the IMF.

Doctor Paul Farmer was in Haiti then and saw what happened. “Within less than two years, it became impossible for Haitian farmers to compete with what they called ‘Miami rice.’ The whole local rice market in Haiti fell apart as cheap, U.S. subsidized rice, some of it in the form of ‘food aid,’ flooded the market. There was violence, ‘rice wars,’ and lives were lost.”
No doubt, some conglomerates managed to make a killing - and not just the profit margins.

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