World According to Monsanto, pt 8, Control

This installment starts off talking to a pair of Indian cotton farmers explaining that not only does Monsanto's Bt cotton still need to be sprayed, they can no longer find non-Bt cotton to buy. The narrator sums up:

"Today in India, Monsanto controls nearly all of the cotton seed market, forcing the locals to buy its seeds at prices four times higher than conventional varieties. Small farmers must turn to money lenders, who charge high interest rates. If the harvest is poor, it means bankruptcy."

The entire microcredit movement, started by Bangladeshi economist Muhammad Yunus, tried to fix the exploitive finance infrastructure available to the poor, who tend not to have collateral or cash reserves that traditional banks are interested in. Yet even microcredit has run into trouble, as noted at Yunus' website:

BALI, July 28 - In an effort to head off a potential crisis in the fast-expanding microfinance industry, its leaders are adopting global truth-in-lending standards and creating a system for comparing loan terms offered by competing lenders. To manage the effort, a new self-monitoring organization, MicroFinance Transparency, is being set up as the industry's policeman. The goal is to prevent companies from taking advantage of poor people with high interest rates and misleading credit offers.

The initiative was announced on July 28 at a microcredit conference in Bali by Chuck Waterfield, a professor at Columbia University who spearheaded the initiative, and Nobel Peace Prize winner Muhammad Yunus, who launched the microcredit revolution in Bangladesh 30 years ago with his Grameen Bank. "Microfinance emerged as a struggle against loan sharks, so we don't want to see new loan sharks created in the name of microcredit," Yunus tells BusinessWeek.

If the industry doesn't curtail abuses and confusion, it faces the prospect of government crackdowns and donor funds drying up. Since Yunus pioneered the idea of lending small amounts of money to poor people without demanding collateral, the phenomenon has spread worldwide. These days, thousands of organizations are making loans to tens of millions of borrowers—usually to help them set up or expand small businesses. ...

As the video segment goes on to note, the introduction of patented seeds sent farmer suicide numbers way up. In an interview with Navdanya founder, Vandana Shiva, she points out that the biotech firms are looking to introduce patented genes into all the seeds they sell, getting everyone used to the idea that companies can have total control over the food supply.

Shiva says, I believe rightly, that control over the food supply is more powerful than guns.

The global poor, who also grow quite a bit of its food, are squeezed by both finance systems that abandon them to loan sharks and corporations who want to be able to charge every year for what farmers used to be able (at least sometimes, if they wanted or needed) to provide for themselves.

I don't even have to stretch my imagination to posit some dire result. The suicide rate among Indian farmers has already increased dramatically.

In response, Monsanto has a very cheery and inclusive mission statement. But you know what they say about good intentions.