'Environmental Nightmare:' Bio-Fuels and the United StatesBy Alvaro Vargas Llosa
Translated By Halszka Czarnocka
July 20, 2007
For the American continent, throughout history maize has been like rice to the Chinese or wheat to the Middle East. For thousands of years it has been part of the DNA of the region. So it's not difficult to understand the unending hysteria in many Latin American countries over the rise in corn prices, with which tortillas - a dietary staple for millions of people - are made.
In less than four years, leaders and organizations that call themselves progressive have moved from denouncing the precipitous drop in corn prices to denouncing its continuous rise – and are doing so with the same arguments! Not a week goes by without Fidel Castro and Hugo Chávez accusing rich imperialists of deliberately inflating the price of corn to impoverish Latin Americans.
But when the price of corn collapsed in 2003, director of the leftist humanitarian organization Oxfam, Phil Twyford, thundered: “The Mexican corn crisis is another example of world trade rules being manipulated to help the rich and powerful, while at the same time destroying the lives of millions of poor people.”
The price increases that have occurred since 2006 have much to do with the production of ethanol, a synthetic fuel made of corn or sugar cane which is subsidized by the United States and Europe. But there are other elements at play here.
Among other factors that make it more difficult for Latin Americans to continue buying tortillas is protectionism, such as the 20 percent tariff imposed by Guatemala on corn imports. In Mexico, indirect price controls have caused white corn shortages, which is the basis of tortillas. Without a doubt, the global cult of ethanol will continue affecting Latin America's Children of the Corn. The pressure to find non-polluting sources of energy in the developed world have turned public opinion in favor of bio-fuels, signaling to politicians and investors and even to conservatives, that ethanol and similar products are the energy of the future. So if someone is to be blamed for the doubling of corn prices in 2006, it should be “green” activists who in many cases are admirers of the very Latin American leaders who now denounce this imperialist conspiracy against tortillas.
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And this is not to mention that ethanol production requires the use of fossil fuels, to the point that only a fifth of each gallon can be regarded as “clean energy.” In order to replace petroleum with ethanol, the area of corn cultivation in the United States would have to grow exponentially; an environmental nightmare if one thinks of how much land would be needed. But even if ethanol is still in diapers, it's already clear that switching to ethanol will come at a price, and not only in the rising price of corn. still more people.
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