"NLP Wessex", INTERNET:nlpwessex@bigfoot.com
11.05.99 23:41
"Monsanto is now trying to establish its control over water"
The article below contains the following disturbing quotation
from Robert Farley of Monsanto:
"Since water is as central to food production as
seed is, and without water life is not possible, Monsanto is now trying to
establish its control over water."
Thanks to Jim Webster for this.
NATURAL LAW PARTY WESSEX
nlpwessex@bigfoot.com
www.btinternet.com/~nlpwessex
>>********************************************************************
"Water is a commons and must be managed as a commons. It cannot be
controlled and sold by a life sciences corporation that peddles in death",
Vandana Shiva, May 1, 1999.
>>
>>
>>http://www.hinduonline.com/today/stories/05012524.htm
>>
>>THE HINDU, Saturday, May 01, 1999
>>Monsanto's expanding monopolies
>>By Vandana Shiva
>>
OVER THE past few years, Monsanto, a chemical firm, has positioned itself as
an agricultural company through control over seed - the first link in the
food chain. Monsanto now wants to control water, the very basis of life.
In 1996, Monsanto bought the biotechnology assets of Agracetus, a subsidiary of
W. R. Grace, for $150 million and Calgene, a California-based plant
biotechnology company for $340 million. In 1997, Monsanto acquired Holden
seeds, the Brazilian seed company, Sementes Agrocerus and Asgrow. In 1998,
it purchased Cargill's seed operations for $1.4 billion and bought Delta and
Pine land for $1.82 billion and Dekalb for $2.3 billion. In India, Monsanto
has bought MAHYCO, Maharashtra Hybrid Company, EID Parry and Rallis. Mr.
Jack Kennedy of Monsanto has said, ``we propose to penetrate the Indian
agricultural sector in a big way. MAHYCO is a good vehicle.''
According to Mr. Robert Farley of Monsanto, ``what you are seeing
is not just a consolidation of seed companies, it's really a consolidation
of the entire food chain. Since water is as central to food production as
seed is, and without water life is not possible, Monsanto is now trying to
establish its control over water. During 1999, Monsanto plans to launch a
new water business, starting with India and Mexico since both these
countries are facing water shortages.'' Monsanto is seeing a new business
opportunity because of the emerging water crisis and the funding available
to make this vital resource available to people. As it states in its
strategy paper, ``first, we believe that discontinuities (either major
policy changes or major trendline breaks in resource quality or quantity)
are likely, particularly in the area of water and we will be well-positioned
via these businesses to profit even more significantly when these
discontinuities occur. Second, we are exploring the potential of
non-conventional financing (NGOs, World Bank, USDA, etc.) that may lower our
investment or provide local country business-building resources.'' Thus, the
crisis of pollution and depletion of water resources is viewed by Monsanto
as a business opportunity. For Monsanto, ``sustainable development'' means
the conversion of an ecological crisis into a market of scarce resources.
``The business logic of sustainable development is that
population growth and economic development will apply increasing pressure on
natural resource markets. These pressures and the world's desire to prevent
the consequences of these pressures, if unabated, will create vast
economic opportunity - when we look at the world through the lens of
sustainability, we are in a position to see current and foresee
impending-resource market trends and imbalances that create market needs.
We have further focussed this lens on the resource market of water and land.
These are the markets that are most relevant to us as a life sciences
company committed to delivering food, health and hope to the world, and
there are markets in which there are predictable sustainability challenges
and therefore opportunities to create business value.'' Monsanto plans to
earn revenues of $420 million and a net income of $63 million by 2008 from
its water business in India and Mexico. By 2010, about 2.5 billion people in
the world are projected to lack access to safe drinking water. At least 30
per cent of the population in China, India, Mexico and the U.S. is expected
to face severe water stress. By 2025, the supply of water in India will be
700 cubic km per year, while the demand is expected to rise to 1,050 units.
Control over this scarce and vital resource will, of course, be a source of
guaranteed profits. As John Bastin of the European Bank of Reconstruction
and Development has said, ``Water is the last infrastructure frontier for
private investors.'' Monsanto estimates that providing safe water is a
several billion dollar market. It is growing at 25 to 30 per cent in rural
communities and is estimated to rise to $300 million by 2000 in India and
Mexico. This is the amount currently spent by NGOs for water development
projects and local government water supply schemes and Monsanto hopes to tap
these public finances for providing water to rural communities and convert
water supply into a market. The Indian Government spent over $1.2 billion
between 1992 and 1997 for various water projects, while the World Bank spent
$900 million. Monsanto would like to divert this public money from public
supply of water to establishing the company's water monopoly. Since in rural
areas the poor cannot pay, in Monsanto's view capturing a piece of the value
created for this segment will require the creation of a non-traditional
mechanism targeted at building relationships with local government and NGOs
as well as through mechanisms such as microcredit. Monsanto also plans to
penetrate the Indian market for safe water by establishing a joint venture
with Eureka Forbes/Tata, which controls 70 per cent of the UV Technologies.
To enter the water business, Monsanto has acquired an equity stake in Water
Health International (WHI) with an option to buy the rest of the business.
The joint venture with Tata/Eureka Forbes is supposed to provide market
access and fabricate, distribute, service water systems; Monsanto will
leverage their brand equity in the Indian market. The joint venture route
has been chosen so that ``Monsanto can achieve management control over local
operations but not have legal consequences due to local issues.'' Another
new business that Monsanto is starting in 1999 in Asia is aquaculture. It
will build on the foundation of Monsanto's agricultural biotechnology and
capabilities for fish feed and fish breeding. By 2008, Monsanto expects to
earn revenues of $1.6 billion and a net income of $266 million from its
aquaculture business. While Monsanto's entry into aquaculture is through its
sustainable development activity, industrial aquaculture has been
established to be highly non-sustainable. The Supreme Court has banned
industrial shrimp farming because of its catastrophic consequences.
However, the Government, under pressure from the aquaculture industry, is
attempting to change the laws to undo the court order. At the same time,
attempts are being made by the World Bank to privatise water resources and
establish trade in water rights. These trends will suit Monsanto well in
establishing its water and aquaculture businesses. The Bank has already
offered to help. As the Monsanto strategy paper states: ``We are
particularly enthusiastic about the potential of partnering with the
International Finance Corporation (IFC) of the World Bank to joint venture
projects in developing markets. The IFC is eager to work with Monsanto to
commercialise sustainability opportunities and would bring both investment
capital and on-the-ground capabilities to our efforts.'' Monsanto's water
and aquaculture businesses, like its seed business, aimed at controlling
the vital resources necessary for survival, converting them into a market
and using public finances to underwrite the investments. A more efficient
conversion of public goods into private profit would be difficult to find.
Water is, however, too basic for life and survival and the right to it is
the right to life. Privatisation and commodification of water are a threat
to the right to life. India has had major movements to conserve and share
water. The pani panchayat and the water conservation movement in
Maharashtra and the Tarun Bharat Sangh in Alwar have regenerated and
equitably shared water as a commons property. This is the only way everyone
will have the right to water and nobody will have the right to abuse and
overuse water. Water is a commons and must be managed as a commons. It
cannot be controlled and sold by a life sciences corporation that peddles
in death. (The writer is Director of the Research Foundation for Science,
Technology and Ecology, New Delhi.)