Who is to blame for Rising Corn Prices in Mexico?

Andrew Leonard of How the World Works makes an interesting argument about corn tortilla prices in Mexico. (If you did not know already, corn prices have been rising steeply in Mexico) Most of the initial blame has been on the diversion of corn to ethanol production, but Leonard fingers a deeper problem.

Much Ado about tortillas and ethanol

Quintana said that when tortilla prices rose in January, the government blamed ethanol. But there were other factors, including an increasing demand for grain by livestock owners, increases in gasoline and electricity prices, and the dominant role in the corn marketplace enjoyed by the American agribusinesses Cargill and Archer-Daniels-Midland, which owns a big stake in Mexico’s biggest tortilla maker, Gruma. As an example, Quintana asserted that Cargill and Gruma had sold 98 million tons of white corn originally intended for human consumption as livestock feed. The diversion of that corn played a critical role in pumping up tortilla prices.

Just a reminder, it takes 25 pounds of corn to make one pound of beef (Yes, It’s what’s for dinner!)

“Just to give you an idea, for each 30-ton container of corn that Cargill imports to Mexico we send back two undocumented migrants from the countryside.”

Interesting point, lost to most American policy makers who rail against immigration, I presume. That’s the beauty of “Free Trade”. The word “free” masks all kinds of inequalities, because “free” can’t be bad, right? The opposite of “free” is “enslaved”, that’s got to be bad, right? How can you be against “free” trade? What, do you support slavery?

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    Brazil proposes G5 summit

    interesting news that India, China, Mexico, Brazil and South Africa decide that they no longer need to be invited to the (not so) G(r)8 meeting to talk to each other. This is a welcome development in many ways, may they keep talking.

    The Hindu : Front Page : Brazil proposes G5 summit

    Though largely overshadowed by the brief “pull aside” Prime Minister Manmohan Singh had with U.S. President George W. Bush, the most significant aspect of last week’s G8 meetings was the new dialectic that emerged among the five countries which were invited to Germany as “outreach” partners.

    At a meeting of the five — Brazil, China, India, Mexico and South Africa — Brazilian President Luis Inacio Lula da Silva took the lead in proposing that the group consider getting together again at a forum other than that of the G8 so that its own meetings are no longer incidental to the meetings and agenda of the eight most industrialised countries.

    The proposal was welcomed by the other leaders, say Indian officials familiar with the June 7 deliberations of the “outreach,” or O-5, in Berlin. China’s President Hu Jintao noted that the five countries together accounted for 42 per cent of the world’s population and Dr. Singh quoted an old statement of Jawaharlal Nehru that developing countries were partners and not petitioners before the chanceries of the world.

  • Chart of the Day – The Arms Trade

    asales1.png
    This is a chart for arms sales by country in 2005. USA is currently tops by far, but if you read the accompanying Boston Globe article from last year, Russia’s trying very hard to catch up.

    This is the oxygen that keeps conflicts going a lot longer than they should, and also make them so much more destructive. Remember this when your favorite government (they’re all to blame here, no singling one country out) starts talking about “peace”.

    Happy Friday!!

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    On Google map, everythings back to normal after Katrina | Chron.com – Houston Chronicle

    TBTB (Too busy to blog), but this struck me as very weird.

    On Google map, everythings back to normal after Katrina | Chron.com – Houston Chronicle

    Google’s popular map portal has replaced post-Hurricane Katrina satellite imagery with pictures taken before the storm, leaving locals feeling like they’re in a time loop and even fueling suspicions of a conspiracy.

    Scroll across the city and the Mississippi Gulf Coast, and everything is back to normal: Marinas are filled with boats, bridges are intact and parks are filled with healthy trees.

    “Come on,” said an incredulous Ruston Henry, president of the economic development association in New Orleans’ devastated Lower 9th Ward. “Just put in big bold this: ‘Google, don’t pull the wool over the world’s eyes. Let the truth shine.’ “

    I am sure there is the usual, non-conspiracy involving explanation to all of this, and I don’t know enough about NO geography to even verify this fact, but an explanation would be nice!

    Update:

    Turns out there was a major upgrade of the imagery on the 29th of March. Still does not explain the above…

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    The real terrorist: Pollution

    It is true. A staggering number of people die every year due to lack of access to clean water, air or food. Aggregate statistics like these are a good way to summarize the humongous nature of the problem. While reams and reams of coverage and attention are focused on “terrorists”, people all around the world die of much more mundane causes such as bacteria in water, smog, poverty, starvation, malnourishment, etc.

    ScienceDaily: Pollution Causes 40 Percent Of Deaths Worldwide, Study Finds

    About 40 percent of deaths worldwide are caused by water, air and soil pollution, concludes a Cornell researcher. Such environmental degradation, coupled with the growth in world population, are major causes behind the rapid increase in human diseases, which the World Health Organization has recently reported. Both factors contribute to the malnourishment and disease susceptibility of 3.7 billion people, he says.

  • Great News, but Innovative, Really?

    The “innovation” in this approach is not scientific, but economic.

    Cheap drugs for poor nations | Guardian Weekly | Guardian Unlimited

    Improvements they devise to the molecular structure of an existing, expensive drug turn it technically into a new medicine that is no longer under a 20-year patent to a multinational drug company and can be made and sold cheaply. The process has the potential to undermine the monopoly of the big drug companies and bring cheaper drugs not only to poor countries but back to the UK.

    Okay, I may be missing something here, but this is not a scientifically innovative strategy. They are called Me-Too drugs. Pharma has been doing this for years. Read this article in the Stanford Medicine Magazine about exactly how this is done.

    Nexium illustrates the drug makers’ strategy. Many chemicals come in two versions, each a mirror image of the other: an L-isomer and an R-isomer. (The “L” is for left, the “R” is for right.) Nexium’s predecessor Prilosec is a mixture of both isomers. When Prilosec’s patent expired in 2001, the drug maker was ready with Nexium, which contains only the L-isomer.

    Is Nexium better? So far,

    there’s no convincing evidence that it is, says Stanford drug industry watcher Randall Stafford, MD, PhD.

    This is a well known and well used strategy. The Government Accounting Office (GAO) recently released a study which concluded that 68% of all drugs developed in the US between 1993 and 2004 were Me-Toos.

    So, what is “innovative” and “revolutionary” about this approach is that non-profits are driving the drug development. By outsourcing the entire clinical trial to India, substantial savings are to be had. By not having to fund the US shareholders’ need for huge profits, enormous company overhead, high salaries, multi million dollar executive bonuses and marketing expenses that US/European pharma require, cost savings are potentially huge.

    The downside? Well, unless the studies are run according to US/EU GLP/GMP guidelines, data quality, and therefore, drug safety can be suspect. The pedigree of the people involved in this effort makes it unlikely that the data is going to be suspect. If their ultimate aim is to sell these drugs in England, then they will have to meet the most stringent standards available.

    Of course, these drugs will never hit the US of A. I can already hear the fear mongering, the safety doubts being raised, the “terrorists may get their hands on your pill” bogey, etc. But, Americans can afford to pay for their drugs more than your average Indian suffering from Hepatitis C can. Once the already teetering (by first world standards, of course!) healthcare system in the US gets closer to collapse (by first world standards, of course!), some of these “innovations” will become more viable in this most reactionary of countries.

    I hope this model is proven to be viable.

  • Poverty alleviation and healthcare need more people, not more technology


    Atul Gawande writes eloquently, about why certain advances are taken up very quickly. and some aren’t. Seven pages of crisp prose full of stories, examples and personal experience mixed with science later, I (re)learned a couple of important lessons.

    via Atul Gawande: How Do Good Ideas Spread? : The New Yorker.

     

    One

    This has been the pattern of many important but stalled ideas. They attack problems that are big but, to most people, invisible; and making them work can be tedious, if not outright painful. The global destruction wrought by a warming climate, the health damage from our over-sugared modern diet, the economic and social disaster of our trillion dollars in unpaid student debt—these things worsen imperceptibly every day. Meanwhile, the carbolic-acid remedies to them, all requiring individual sacrifice of one kind or another, struggle to get anywhere.

    The nature of the problem being fixed is important. Issues not immediately apparent to human perception, and which require human behaviour changes to fix are difficult.

    We’re infatuated with the prospect of technological solutions to these problems <snip>As with most difficulties in global health care, lack of adequate technology is not the biggest problem. <snip> Getting to “X is what we do” means establishing X as the norm. <snip> To create new norms, you have to understand people’s existing norms and barriers to change.

    Two, clearly, inventing new technology/interventions is only second or third in a series of steps needed to actually solve a problem. We often laud the technological aspect, awarding prizes for new inventions and new science, while ignoring the much more challenging human dimensions to changing behaviour and norms.

    What would happen if we hired a cadre of childbirth-improvement workers to visit birth attendants and hospital leaders, show them why and how to follow a checklist of essential practices, understand their difficulties and objections, and help them practice doing things differently. In essence, we’d give them mentors.

    We are going in the opposite direction. Government spending, especially on hiring people to solve difficult problems over a medium-long term is now almost taboo. Take poverty, for example. Yesterday, there was a report of a groundbreaking study confirming that, contra the billions of dollars spent trying to win the “war on drugs”, poverty is much more harmful to children than their mothers’ cocaine usage. Clearly, Canada has enough money that no one has to suffer from poverty. Yet, my wonderful “heaven on earth” province BC has Canada’s worst child poverty. The BC government is running headlong in the opposite direction, consolidating services, and making assistance services almost impossible to reach.

    We know what to do, give people money to live, give them cheap and accessible child care, help people with acute and chronic physical and mental health issues including substance use, and employ people they can talk to and learn from, mentors and more. Take the uncertainty out of their daily lives, take out some of the incredibly taxing daily decisions they have to make every day, and see what happens.

    Instead, it is easy politically to spend billions on shiny cars, bazookas, drones, heat sensing equipment, computers, and more for cops to police poverty. My city’s cops ride around in cars that seem ridiculously over-designed given the city’s speed limit of 50 kmph, and Victoria is not even close to being excessive. Yet, it is impossible to spend money on the harm reduction workers that can actually provide the support services people need. We routinely criminalize poverty and hope that we will somehow solve it by harassing people for being poor.

    Real poverty reduction starts with giving more money to the poor, unconditionally and non-judgmentally. But it also involves hiring many more people to act as advocates, teachers and mentors for people who will greatly appreciate and benefit from this increased social connection. If we want change, we need more people whose job it is to make the change happen.