MAR. 2, 2000 – EDITORIAL/OPINIONS
———————————————————————————————————————— Cargill: Our taxes, global
destruction
Minnetonka-based Cargill is often noted as the world’s largest private
corporation, with reported annual sales of over $50 billion and
operations at
any given time in an average of 70 countries. The “Lake Office” of
Cargill is a 63-room replica of a French chateau; the chairman’s office
is
part of what was once the chateau’s master-bedroom suite.
A family empire, the Cargills and the MacMillans control about 85
percent of the stock. Not only the largest grain trader in the world,
with over 20
percent of the market, Cargill dominates another 12 sectors, including
destructive speculative finance, according to “Invisible Giant: Cargill
and
its Transnational Strategies,” by Brewster Kneen.
Taking advantage of the capitalist speculative collapse of 1873, Cargill
quickly bought up grain elevators. After vast cooperation with the
state-sponsored railroad robber barons, central grain terminals averaged
extremely high annual returns on investments of 30 to 40 percent
between 1883
and 1889. Cargill hired a Chase Bank vice president to secretly help the
corporation through the Depression, writes Dan Morgan in “Merchants of
Grain.”
“There are only a few processing firms,” and “these firms receive a
disproportionate share of the economic benefits from the food system,”
states William D. Heffernan, professor of rural sociology at the
University of Missouri. Details of Cargill’s price manipulations at the
expense of
farmers worldwide was documented in the classic study, “Food First:
Beyond the Myth of Scarcity” by Frances Moore Lappe and Joseph Collins.
They
report that Cargill has had a history of receiving elite government
price information that should be told to U.S. farmers.
That secrecy, along with tax-subsidized market control, enables Cargill
to buy from U.S. farmers at extremely low prices and then sell abroad to
nations pressured under the same destructive elite corporate control.
See the Institute for Food and Development Policy’s Web Site at
www.foodfirst.org....
Between 1985 and 1992, the legal entity called Cargill received $800.4
million in tax subsidies via the Export Enhancement Program, a
continuation of
the infamous “Food for Peace” policy, writes Kneen. Promoted by Hubert
H. Humphrey and instituted as PL 480, food became a Cold War tool, i.e.
“for Peace.” If we can induce people to “become dependent on us for
food,” then “what is a more powerful weapon than food and fiber?”
Humphrey declared, according to “Necessary Illusions: Thought Control in
Democratic Societies” by Noam Chomsky.
Actually, most of the nation recipients of tax-subsidized Cargill food
dumping were, and are, net exporters of food already — policies imposed
by
colonial trading patterns. The food (for Peace) has been bought cheaply
by neocolonial regimes, and then sold at a huge discount on the local
market
— in Somalia, for example, at one-sixth of the local prices. Many
examples of these misguided policies can be found in “Betraying the
National
Interest: How US Foreign AID Threatens Global Security by Undermining
the Political and Economic Stability of the Third World,” by Frances
Moore
Lappe, et al.
Cargill’s undercutting wipes out the local farmers’ self-reliance, while
the revenues (going to the elite) are tied to required purchases of
U.S.
weapons, writes Chomsky, citing “The Soft War” by Tom Barry, 1988. But
the main beneficiary of “Food for Peace” has been Cargill. Keen writes,
“From 1954 to 1963, just for storing and transporting P.L. 480
commodities, the heavily subsidized giant Cargill made $1 billion.”
Indian lawyer N.J. Nanjundaswamy reports that a Cargill motto is, “One
who controls the seed, controls the farmer, and one who controls the
food
trade, controls the nation.” Yudof’s recently stated support of federal
foreign policy Title XII is another public promotion of the University
of
Minnesota-Cargill partnership’s raiding of sustainable agricultural
cultures.
Cargill is such a damaging threat that in Dec. 1992, 500,000 peasants
marched against corporate-controlled trade, and the irate farmers
ransacked
Cargill’s operations. Fifty people were arrested at the partially
completed — and subsequently destroyed — seed-processing plant in
Bellary,
India. In 1996, 1,000 Indian farmers gathered at Cargill’s office and
destroyed Cargill’s records. For more, see www.endgame.org...
Cargill has been doing bio-piracy, stealing traditional products. For
instance, it used Basmati, a rice from India, as its trade name, and the
company
continues to be one of the main promoters of corporate-driven
intellectual property rights. The U.S. Trade Act, Special 301 Clause,
allows the United
States to take unilateral action against any country that does not open
its market to U.S. corporations.
The United States, for example, has threatened to use trade sanctions
against Thailand for its attempt to protect biodiversity. A bill that
has been
before parliament in India and promoted by Cargill, “takes away all the
farmers’ rights, which they have enjoyed for generations — they will no
longer be able to produce new varieties of seed or trade seed amongst
themselves,” writes Nanjundaswamy.
The research center, Rural Advancement Foundation International, found
that “fifteen African states, among them some of the poorest countries
in the
world, are under pressure to sign away the right of more than 20 million
small-holder farmers to save and exchange crop seed. The decision to
abandon
Africa’s 12,000-year tradition of seed-saving will be finalized at a
meeting in the Central African Republic. The 15 governments have been
told to
adopt draconian intellectual property legislation for plant varieties in
order to conform to a provision in the World Trade Organization.”
Cargill, with extensive funding from the U.S. Agency for International
Development, is also destroying the world’s largest wetland — the
Pantanal,
in South America — in order to dredge a channel that’s designed for
convoys of up to 16 soybean- and soymeal-carrying barges, according to
the
Institute on Food and Development Policy.
Cargill has been on the Council of Economic Priorities’ list of worst
environmental offenders. Mother Jones magazine and Earth Island Journal
report
that Cargill is responsible for 2,000 OSHA violations, a 40,000-gallon
spill of phosphoric solution into Florida’s Alafia River, poor air
pollution
compliance and record-high releases of toxic waste.
With help from the Program on Corporations, Law and Democracy, located at www.poclad.org...,
states have recently begun to respond to citizen
pressure and revoke corporate charters. The assets of Cargill should be
revoked, allowing the citizens of the United States to give farmers the
benefits of fair trade instead of Cargill’s secretive policy of
tax-subsidized global destruction.
[edit on 27-3-2010 by drew hempel]
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