Hunger: The food crisis, prices, speculation & facts

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Current soaring food prices are being worsened by record levels of financial speculation, according to a leading UK anti-poverty group. Latest figures from the World Development Movement reveal that hedge funds, investment bankers and pension funds have poured over $200bn into food markets since the financial crisis, betting on the rising price of food.

This huge wall of speculative money has now reached record levels according to the US commodities regulator [1]. This has caused the market to over-react to shortages in supply or rising demand, pushing food prices ever higher.

This week the UN’s food price reached a record high and food riots broke out in Algeria as the impacts begin to be felt around the world [2]. Food prices have now risen above those seen during the global food crisis of 2008 [3] when riots broke around the developing world and over 1 billion went short of food.

Many speculators are simply trying to avoid inflation by throwing money into food markets, betting on long term rising food prices and not reflecting the current state of global food markets. Much of this money has come from efforts to deal with the financial crash like the banking bail out and so-called ‘quantitative easing’ in Europe and the US.

The World...

This year, the British public will be paying more for their Christmas turkey because of City speculators. Betting on commodity prices by hedge funds and investment banks has led to rapidly rising prices of animal feed [1], driving up the retail price of turkeys.

Paul Kelly, an award winning turkey farmer and breeder, warned that turkey prices this Christmas are going to be more expensive than last year and we will be paying up to £3 extra for our festive bird. He said:

“It’s all down to feed prices which have been rising at a rapid pace this year. And it’s entirely fuelled by speculators in the commodity food markets. It’s got nothing to do with wheat stocks. It’s city money men who are driving these prices.”

In spite of the wildfires destroying Russian wheat during the summer, the US and Europe and other grain producing regions have had good harvests this year and the UN even issued a statement saying that global wheat stocks are sufficient.[2]

Since the financial crisis began, market analysts have noted a wave of speculative money pouring into commodity derivative markets, including food. Many experts link this activity by banks and hedge funds to recent volatility and sudden inflation in the retail costs of food and energy.[3]

Paul Kelly adds...

Heidi Chow, Food campaigner

Last Friday, WDM’s human blackjack game won Third Sector’s digital campaign of the week. Third Sector is the UK’s leading publication for the voluntary and not-for-profit sector and has over 80,000 readers.

Third sector praised WDM’s web based campaign:

"The subject area of the campaign is a difficult one to convey…However, WDM has taken a fun and interactive approach to drive home its message, meaning it is less complex and more engaging…"

The online game has had over 5000 views and takes people on a journey into the shadowy world of food speculation. Players select a character to play and as they play the card game, blackjack (also known as 21 or pontoon), they discover the gambling that takes place every day in the financial markets where bankers’ betting on food prices is driving up the price of basic food across the world.

The game is still online, play it here and get yourself onto the leaderboard. Remember all that is required is compassion – not cash.
 

Kate Blagogevic, WDM media officer writng from Oaxaca, Mexico. 

Earlier this week, we met Oliver in the Universidad de la Tierra. It’s a small organisation of 7 academics who are working to provide alternative analysis, education and solutions to those being pushed by governments and the powers that lie behind the dominant system of corporate globalisation.

It was founded a decade ago in Oaxaca, a city with has a history imbued with a fight for autonomy from state and corporate power. The university offers exchanges for foreign students to open their eyes to the political and economic struggles at play in Mexico; and apprenticeships to people from surrounding communities; including midwifery, environmental management and computer science. The ethos behind this is to teach practical skills that can be put to use in communities to avoid the ‘brain drain’ from rural to urban areas and provide an alternative to the dominant education system where learning is so often directed purely towards functioning within the capitalist system that so often fails the people who try to be a part of it.

Unitierra are involved in a huge range of practical community projects helping to create a pathway towards a more...

Martin Bowman, campaigns and policy intern

2010 is surely the year of the octopus, if controversially. The death threats that were sent to Paul the psychic octopus have shown the capacity of our bulbous eight-legged friends to galvanize public opinion. If harmless football score predictions fuelled such anger, let us hope that Paul was just a warm-up act for this next aquatic provocateur. Enter: the Giant Vampire Squid.

Being compared to a Giant Vampire Squid is not particularly desirable, but it’s probably another insult to add to the pile for investment banks like Goldman Sachs. The name was first given to them by the journalist Matt Taibbi in Rolling Stone, saying that investment banks are like: “a giant vampire squid wrapped round the face of humanity”. The new economics foundation (nef), backed by a variety of groups including Compass and the Post Bank campaign, have picked up this neat little metaphor, and made it the basis of their fantastic new video, which I urge you to watch and shout / facebook / tweet to the hills:

...

This morning, as I was trying to locate the bus to take me down the long mangrove lined road to the building that was host to the COP16 (short hand for the 16th Conference of the Parties to the United Nations Framework Convention on Climate Change), I met Gopal who had traveled from Nepal to be here. Gopal showed me the way to the bus, and we started talking about his work in Nepal. He was an expert in adaptation, researching local, community-led solutions to enable people to adapt to the impacts of climate change. His main focus was in considering how this locally driven knowledge could be shared, replicated and built on.

He talked about the issues now facing Nepal; melting glaciers, increasingly unpredictable rainfall, a net decrease in food production and a huge falls in the level of ground water table that has already forced a notable migration. I asked where his organisation got its funding from, and he reeled off a list of government departments for international development from across Europe.

I then asked how they found working with these donors. At first he was a little hesitant to sound critical, saying that he didn’t work with them directly, that was someone else’s job. But after I probed a little he went on, "The thing is with these donors" he said "is...

Thanks to everyone who played human blackjack last week! Hundreds of people took part in our online game to learn more about food speculation and join the fight to stop bankers from betting on food. Also congratulations to Mary from Glasgow who won our prize draw of people who took part - a box of Lush ethical bath goodies is on its way to you!

Though the game was fun (I tried hard to get in the top 10 of the leader board but couldn't beat the top scorers!), the story of human blackjack is a real one. Everyday bankers are betting on food prices in financial markets, making basic foods unaffordable to millions in developing countries. The battle to stop the bankers is going on right now - on both sides of the Atlantic. President Obama signed the Dodd-Frank Reform Act earlier in the year which gave the US regulators the powers to clamp down on food speculation. The US regulators now have the job of working out the details but bankers have been lobbying hard for exemptions from the rules.

US campaigners...

Gary Dunion, used to be food campaigns officer

The financial crisis has exposed the power of unregulated financial markets to wreck the real economy most of us depend on. And the bailouts and bonuses have shown that when bankers get it wrong, they aren’t the ones that suffer the consequences.


The credit crunch was infamously caused by gambling on derivatives, complex and shadowy financial instruments that in this case were based on ‘sub-prime’ mortgage debt. When gambling on mortgages is out of control, people lose their homes – so what happens when the gambling is on food?

Welcome to Human Blackjack.

Bankers betting on food caused the crisis of 2008 that took the number of hungry in the world above 1 billion people. And they did it again this year when the price of wheat shot up 40% in a single month.

It’s dangerous, it’s immoral and it’s easily preventable. They can only get away with it as long as people are too confused by financial jargon to understand what they’re doing. To stop them, we only need to let everyone see exactly what goes on behind the doors of the casino.

Any time from midday to midnight on Friday the 26th of November, we invite you to...

Bexhill and Hastings WDM play a game of 'Human Blackjack' with George Osborne showing how the government's allowing bankers to keep betting on food.

Bexhill group members sit at a casino table playing blackjack with someone dressed as George Osborne. Piles of sacks of food with a plackard saying "Stop bankers betting on food" sit in the background

Brighton & Hove WDM explaining the complexities of food speculation to passers-by in Brighton, using a giant snakes and ladders' board

Brighton & Hove WDM

Brighton & Hove WDM

Sheffield WDM created an ingenious 'plate-spinning' game at a recent event to involve people in our food campaign

WDM Sheffield

WDM Sheffield plate spinning

 

I completely support WDM’s campaign to urge the government to provide sufficient resources as grants, not loans, to developing countries in order to help them adapt to climate change…"
- Caroline Lucas, MP for Brighton Pavilion


At the heart of WDM sit its fifty-two local groups. Our groups are made up of people who are committed to campaigning against global injustices and targeting the government and business policies which are keeping developing countries locked in poverty. Through their actions and campaigning efforts, these groups are instrumental in winning our campaigns. One of the ways in which they do this is by lobbying their local MPs.

When our Brighton group met with Green Party MP Caroline Lucas recently she offered full support for our climate debt campaign. She also promised to find out from Andrew Mitchell what’s been happening with the pounds WDM supporters have been sending to DfID for the UN Adaptation Fund.

WDM groups around the country have been lobbying their MPs on both our climate debt and our...

...to win the worst lobby award.

In July 2010, in just one month, the price of wheat increased by 60 per cent. For us in the UK this could mean higher prices for our biscuits and bread but for those in developing countries, price hikes in basic foods like wheat are disastrous and leads to hunger and malnutrition.

By the end of August, demonstrations against rising food and fuel prices were held in Maputo, capital of Mozambique. “I can hardly feed myself. I will join in the protest because I’m outraged by this high cost of living.” said Nelfa Temoteo, a local resident.

And it’s not the first time. In 2008 the world experienced a global food crisis with rapidly increasing prices for basic food products. For example from early 2007 to mid-2008, the price of wheat shot up by 80% and maize by 90% and then after June 2008, the price fell back down.

So what can explain these huge price hikes? And what has all this got to do with Goldman Sachs? They’re a bank after all - they don’t grow, sell or process food, do they?

Unfortunately, Goldman Sachs has everything to do with these price hikes and this is why I am voting for them. The food price hikes of 2008 and 2010 were caused by speculative money flooding into food commodities markets as more and more...

Thank you for joining our campaign to stop bankers from speculating on food prices. Their activities have made food unaffordable for poor people around the world, spreading hunger and malnutrition.

We will keep you updated with the latest actions and news on the campaign over the coming months.

We will also invite you to take part in the world’s first online game of human blackjack on 26th November 2010. You can join in anytime from 12 midday to 12 midnight. Compassion, not cash, is all that’s required.
 

Jayati Ghosh is Professor of Economics at Jawaharlal Nehru University, New Delhi, and Chair of the Centre for Economic Studies and Planning. In this analyisis for WDM, she shows how financial speculation on food drive the 2007-2008 food price crisis.

Download Commodity Speculation and the Food Crisis here.

 

When Jayati Ghosh was in the UK a couple of weeks ago we took the opportunity to interview her about the 2007-2008 food crisis, food security and the financial crisis. This is what she had to say.

Adam Gardner, fair trade campaigner

WDM’s Gambling on Food public looked like an un-miss able event, and judging by the packed hall, I wasn’t the only one to think so. It was also my first WDM meeting and though I couldn’t claim to know too much about futures markets or commodity speculation beforehand, it was one of the most informative and inspiring events I’ve been to in a long time.

Dr. Jayati Ghosh firstly painted the picture of food price rises over the past 15 years- eloquently correlating the rise and fall of futures commodity prices with the deregulation of commodity futures markets and the boom and bust of other stock markets during the recent period of financial crisis.
Dr. Ghosh showed enormous knowledge and understanding whilst debunking the myths around food price rises in the global south, including the fact that Indian and Chinese consumption of grains has fallen in absolute terms in the past 15 years - one explanation offered by those who would like to play down the impact of casino capitalism on the world’s poor. She also addressed the impact of climate change, lack of agricultural investment and move to bio fuels worldwide, adding that the speculation on futures prices hugely exaggerates any slight price changes other factors may...

The European Commission and the French and US governments have all said they want to bring food speculation into the open and regulate it to stabilise prices. We need to you to help pressure the UK government to ensure that it backs proposals for regulation and not to take sides with the banks to block reform.

Email George Osborne at the Treasury, asking him to support strong and effective regulation to stop banks from betting on hunger. The Treasury is the government department which decides whether the UK will support international regulation to rein in excessive speculation on food prices

 

 

  • New figures produced on eve of World Food Day reveal new wave of financial speculation on wheat and corn
  • Speculation drives surge in wheat and corn prices to two-year highs

New evidence that speculation on food by hedge funds, pension funds and investment banks is fuelling the rise of bread and other basic foods has been released by anti-poverty campaigners on World Food Day, October 16, 2010.

The World Development Movement has calculated that over the summer, financial speculators in Chicago alone bought up corn futures contracts equivalent to nearly 1.7 billion bushels [1] – more than the annual consumption of Brazil, a country of some 260million people and the world’s third largest consumer of corn.

The figure for wheat over the same period was 241 million bushels [1], equivalent to seven times the amount consumed by Kenya, or half the UK’s total annual wheat harvest.

Between April and September 2010, world prices for wheat rose by over 40 per cent, while corn has risen by over 30 per cent. The campaigners say that these prices rises, which are the highest since the food crisis that gripped the world in 2008, are contributing to higher inflation in the UK for basics foodstuffs such as bread and pasta in the UK, as well causing...

Caroline Griffin, Fundraising and communications officer

In July, I went to Kenya to find out how speculation on basic food commodities has affected people’s lives. I've put together a photo gallery which tells the story of gambling on food from the people's perspective.

Many of the photographs are of people I met who had gone without food for days or been forced to sell their few possessions to feed their families. The price of maize, the Kenyan staple food doubled or tripled in a matter of days, causing unnecessary hardship for the fifty per cent of the Kenyan population who already live below the poverty line.

Additional problems such as drought, unemployment and underlying health problems meant that many families reached crisis point when food prices shot up. Some of the people I spoke to are still picking up the pieces after the events of 2008.

But thanks to the World Development Movement, economists, journalists and development experts are now pointing to food speculation as the most significant cause of food crises, including the current food...

We are lobbying the UK government to demand tighter regulation of commodity speculation, which our report The Great Hunger Lottery reveals creates market volatility and sharp rises in the price of basic food commodities.

Maize, the staple food in Kenya, is gambled on in global commodity markets. In 2008, maize was subject to a 100% cost increase, which meant that many of the poorest people in Kenya went hungry, lost their livelihoods and suffered health problems.

In July 2010 some of our staff went to Kenya to speak to people about the effects of the food price rises. Here are some of their stories.

Today, there are many stories about food price rises - hitting poorer people in Mexico and countries in Africa, but delivering fat profits for the likes of contraversial agribusiness, Cargill, which is the world's largest agricultural commodity trader.

In the Daily Mail, climate change is blamed, stemming from academics studing extreme weather events and the impact on food production - they recommended more investment in agriculture and weather resistant crops.

Over at the BBC, they are asking you why you think Africa is still hungry which will culminate in a phone in on World Service this afternoon, should make interesting listening.

And the FT, they highlight that Cargill has made bumper profits because corn prices are at a two year high, that tortilla riots in Mexico in 2006 were a sign of things to come, and that there is a stampede to buy corn because of a reported drop in supply.

With the exception of the...

Since I joined WDM last year, I’ve been thinking a lot about “narrative”. WDM is against injustice; against poverty; against inequality. A quick trawl through our campaigns and you’ll often see us saying “stop” something – stop betting on hunger; stop RBS from spending money on tar sands: stop, stop, stop.

George Monbiot’s article today, which highlights work by Tom Crompton, an advisor at WWF, about framing, is spot on. “It goes against our nature; but the left has to start asserting its own values”. I’ve worked with Tom, and his deep thinking approach to social change has always inspired me, but I’ve never been quite sure what to do with it, until now (clearly I’m not quite as big a thinker as he is).

According to Tom’s research, psychologists have demonstrated that social identity is either based on extrinsic or intrinsic values. People with a strong sense of extrinsic values are focussed on individual self-interest, money, image and traditional notions of “success”, whereas people with more intrinsic values favour relationships, community, family and friends, and...

Kate Blagojevic, used to be press officer

I am sure there are few things that Richard Branson and WDM agree upon; one is the preceding sentence and the second is that excessive speculation by banks and hedge funds exacerbated the food crisis in 2008.

That's all i can think of so in short WDM and Virgin have little in common: WDM has campaigned for the aviation industry's emissions and subsidies to be cut, and on a personal note, Richard Branson throwing Kate Moss over his shoulder and the sexism rife in Virgin ads all make me cross, so it was somewhat surprising to hear conversations about 'a great letter in the Economist from Branson' in the office. But it was true, and regarding this letter in which Branson took The Economist to task over its some of its analysis on the effects of excessive speculation on the price of food and oil.

The OECD report to which Branson refers claims that there is no link between speculation and food prices is widely touted by the banks, and others who oppose reform and regulation which seems to include the Tory party. From Virgin to the World Bank to UNCTAD to the FAO to the UN expert on Food to the US government and to the French government and...

The World Development Movement believes that a key reason that food prices rises have been increasing dramatically is due to excessive speculation in commodity markets by investment banks and hedge funds and that the UN FAO should be coming out more strongly against excessive speculation.

Dr Julian Oram, who is attending the UN FAO emergency summit in Rome commented:

"There is a clear narrative emerging from the meeting of, ''crisis? what crisis?' Looking at the numbers we're not facing an imminent food shortage, such as we saw in 2007-08. What's interesting is that the current jump in grain prices seems to be driven by markets, not supply and demand. There's a strong view that we're  witnessing a speculation-induced food price spike.

"We've heard some concrete ideas at today's sessions to reign in excessive speculation on commodity markets, and it's encouraging to hear more and more governments falling in line behind these proposals."

“Food experts are telling us that global grain stocks are fine and there’s no imminent shortage. The recent price movements we’ve seen can only be explained by opportunistic speculators snapping up food derivatives contracts, in order to make a quick buck. This kind of activity benefits no one, and it’s up to the...

With only five years left to meet the MDGs, WDM has analysed where progress has been made. It is striking that people in Sub-Saharan Africa are being neglected. WDM believes that this worrying trend is at least partly due to a post 9/11 preoccupation with national security interests at the expense of poverty alleviation strategies. This is likely to be entrenched by the UK still deeper if you read between the lines of recent comments by Nick Clegg and Andrew Mitchell that the UK will increase aid for fragile and conflict ridden countries. 

Goal 1: Eradicate extreme hunger and poverty

The flagship target of the MDG programme is that the number of people living on less than $1.25 per day is halved. We appear on course globally, but Africa is being left behind. Sub-Saharan Africa is now the only region where more than half of the population still live in extreme poverty.

Conversely, no progress was made in reducing hunger between 2000 and 2007. Since then we’ve seen the 2008 food price spike, during which, for example, the price of maize meal in Nairobi more than doubled. The result is that hunger topped 1 billion in 2009 and although some of the latest figures show that there has been minimal progress, current high food prices are likely to set...

Climate change is like eating a slap-up meal then handing the bill to the world’s poor
- Ricardo Navarro, El Salvador

Climate change is the greatest challenge facing humanity. But it is not just an environmental issue, it is a development issue, and a global justice issue.

It is our excessive carbon emissions that are driving climate change. Rich countries are responsible for almost three quarters of global emissions. But it is poor countries that are bearing the brunt of the impact. Hundreds of millions face drought, floods, starvation, disease and death.

WDM is calling on the UK government to take action to reduce the UK’s emissions and show the rest of the world that it can be done. WDM is campaigning to stop climate injustice.

For more info all of our climate change briefings and reports are also online.

The impacts

150,000 people are already dying each year because of climate change. The poorest in the world are the most affected by climate change yet they are the least responsible.

Flooding: Vast areas of land will become submerged as sea levels rise with increasing...

Clean up the banks - WDM Scotland's priority campaign

 Demonstration outside the Royal Bank of Scotland

As taxpayers, we own over 80% of the Royal Bank of Scotland but continue to invest in projects that threaten the climate. Join our campaign to clean up the bailed-out banks.

Climate Debt

Climate debt graphic depicting the earth in chains 

Britain owes compensation to poor countries for our historic and continuing over-use of fossil fuels.  Find out more

Food Speculation

Woman spreading grain

Banks are earning huge profits from betting on food prices...

Support our appeal and help us achieve another forty years of campaign success by donating now

Join WDM in celebrating forty years of successfully fighting for justice for the world’s poor. With your help, we have exposed injustice, held corporations to account and stopped harmful government policies; winning lasting change for the world’s poorest people.

From our famous victory in the 1994 Pergau Dam court case, which forced the government to stop conditional aid spending, to spearheading the campaign that led to debt cancellation for many of the world's poorest countries, WDM has always punched above its weight.

WDM campaigners during the historic Pergau Dam campaign

Four decades on, WDM’s work remains vital. Over the last 20 years globalisation has slowed economic progress in many developing countries, benefiting the few while millions still live in poverty. Recently, the financial crisis and rising food prices have driven...

-- 'Reckless' commodity speculation amplifies wheat price spike
-- Anti-poverty campaigners welcome proposals for new European financial watchdog


The World Development Movement (WDM) has said proposals to establish three new European banking regulators could help prevent food crises, as wheat price rises fuelled by financial speculation trigger bread riots in Mozambique.

WDM has been pushing for urgent action to prevent banks and hedge funds engaging in excessive speculation in food derivatives markets, which drove the 2006-2008 food price crisis [1] and is fuelling the recent wheat price spike. Wheat prices have rocketed nearly 70% since January, causing riots in Mozambique this week in which seven people have died.

Negotiators from the European Commission, European parliament and Council of Ministers yesterday agreed to establish the three watchdogs, which will include a European Securities and Markets Authority covering derivatives as well as other markets.

Deborah Doane, director of the World Development Movement said:

"The feeding frenzy on wheat derivatives is once again causing hunger and unrest in the world’s poorest countries. It is essential that we end the reckless speculation by big banks and...

Wheat prices have hit a two year high. Prices are again climbing steeply for wheat and, despite claims by some analysts in the media, there is plenty of wheat available and talk of global shortages is unfounded.

The last time prices were higher, there was a food crisis and people were going hungry across the developing world, whilst in the US and UK people were paying more for their weekly shop.

Whilst drought, fire and flooding have reduced Russia and Canada's wheat harvest respectively, there is a bumper yield in the United States and global wheat stocks are high. So if the price were based on supply and demand for wheat itself, the price would not be rocketing in the way that it has over the last month. According to Jonathan Barratt, managing director at Commodity Broking Services in Sydney “There are two things driving the market, fear and fund buying.”

Those funds are the same speculators which caused food prices to go so high in 2008, and have sent coffee and cocoa prices all over the place in recent months. Now they are once again pushing up the price of one of the world’s staple foods. It has been reported that speculators bought an unusually high number of wheat contracts in recent weeks.

Some producers of biscuits and bread have said that...

WDM campaigners James O’Nions and Caroline Griffin are in Kenya to research the effects of food price rises on ordinary Kenyans. James reports on their first visit to Kibera, the huge slum on the outskirts of Nairobi.

Today Caroline and I visited a part of Kibera. We were there to meet a group of women from Kibera Women for Peace and Fairness. The group, which comprises hundreds of women, was formed during Kenya’s post-election violence in 2007, which had its epicentre in Kibera. Women and children were being caught up in the violence, including the police response, and being hit by teargas and worse.

Kibera Women for Peace and Fairness, Kibera slum, Nairobi
Kibera Women for Peace and Fairness, Kibera

When the food crisis hit in 2008, the women mobilised again. The daily wage that one person in Kibera is likely to be able to earn is about 50-150 Kenyan Shillings (around 40 pence). Before the price rises, a 2kg bag of maize meal, or unga, the basic staple, was around 50 Shillings. In order to make it into a meal for a family, they also need paraffin, cooking oil, salt, and ideally some vegetables as well. Yet when the price of maize on world...

Yesterday afternoon, James, Kiama Kaara from Kenya Debt Relief Network and I drove to Thika, a medium-sized town 40km north east of Nairobi along a bustling road lined with traders, construction workers and shops for a meeting with Zachary Makanya from the PELUM Association.

PELUM, which stands for Participatory Ecological Land Use Management, are a network of civil society organisations and NGOs working with small-scale farmers from East, Central and Southern Africa. Their vision is an inspiring and humbling one and what Zachary told us was very clear. Kenyans are still not seeing an improvement in their quality of life despite decades of aid money being poured into the country by mostly good-intentioned by often ill-informed and patronising donors and NGOs. The effects of aid dependency and the legacy of colonialism mean that the urgent process of ‘decolonising the mind’ must now start in earnest if African nations, Kenya included, are to resist the fierce and bullish march of globalisation and industrialisation, which is already wiping out traditional knowledge, languages, indigenous communities and the natural environment.

...

Over the weekend we visited Makueni, a market town about two and a half hours drive to the south of Nairobi. Driving first down the main road to Mombassa, then turning off to pass through the regional centre of Machakos, we arrived in Makueni after dark with the crickets signing to us. In the big cities, great poverty nestles next to relative wealth, but the further you go into the countryside, the more poverty keeps its own company.

The next day we met Phyllis Nduva, a community mobiliser, and she took us down a long road made of deep, fine, red dust to a village where the community had gathered to hear about Kenya’s proposed new constitution. The constitution is the big news here, with the efforts of the ‘Yes’ and ‘No’ campaigns dominating the headlines, and a referendum due on 4 August. I’ll write more about some of the issues involved later, but this gathering was aimed at educating the community about what they were voting on, even if the official ‘Yes’ campaigners turned up later to rally people to their side.


Phyllis Nduva talks to Makueni farmers about what a new Kenyan constitution will mean for them. Caroline Griffin/WDM

...

The Kibera slum in Nairobi is home to around 1.5 million people. That's half the population of Nairobi, squeezed into just 2.5 square kilometres. On the way there, our driver, Charles described the extent of the violence that erupted in Kibera during the 2007 elections. Cars were set alight, men, women and children were beaten as they were forced out of from their homes and pumped with tear gas by the Kenyan police. As we approached the entrance to the slum, Charles locked down the doors and wound up the windows. The public perception of Kibera within Kenya is that it’s a dangerous, lawless place.

Our perception was a very different one. We met with a group of eight women and Sheikh Ahmed Abdulrahim, a community human rights activist for a meeting under a tree just on the edge of the slum. They spread out their scarves on the ground for us to sit on and started to tell us about their campaign and their own personal experiences.

Kibera Women for Peace and Fairness connect the violence in 2007 with the extreme poverty they live in. The unrest was partly to do with a huge hike in food prices, which meant many people could only afford to eat one meal a day. This, and the horrific conditions and deprivation people have to suffer in Kibera led to the overflowing of...

Ingredients
1 full page article in the Guardian newspaper
1 interview on BBC Radio 4 Today programme
1 interview on BBC Newsnight
10 articles across other newspapers
31 articles online
900 sign ups to a phone action,
65 comments on our website

Take all the ingredients and combine well to create heat and froth.

Ok it’s a food campaign so couldn’t resist the analogy to cooking. Last week we launched our new campaign to regulate food speculation in financial markets with an amazing amount of press and media coverage. The story got picked up as it’s the age-old tale of greed at the expense of millions going hungry. Bankers, like Goldman Sachs, are speculating on food prices which have fuelled price hikes in recent years and driving more people into deeper poverty and hunger.

As well as raising profile for the campaign on television, radio, press and web we...

While I’ve been in Kenya I’ve been reading a new book by Milford Bateman; Why doesn’t microfinance work? The destructive rise of local neoliberalism. Microfinance has been feted as an effective solution to poverty for the very poor for a number of decades now, and in 2006 Mohammed Yunus, the founder of the first microfinance institution, the Grameen Bank in Bangladesh, was awarded the Nobel Peace Prize.

But Milford Bateman’s contention is that microfinance is not only very bad at ‘lifting people out of poverty’, but that it has only survived and prospered in the mainstream development community because it fits very well with needs of maintaining a neoliberal economic system.

Africa is, of course, now flooded with microcredit lenders, and Kenya is no exception. Bateman’s book is excellent at demolishing the ‘myths’ about the efficacy of microfinance, including the contention that it empowers women. But with particular reference to Africa he argues that what Africa needs is not “a vast reservoir of self-employed traders” but “a robust light industrial foundation … and manufacturing-based enterprises capable of productivity growth.” In fact, he argues, “the proliferation of microfinance...

Kate Blagojevic

Today, we launched a report showing how banks speculate on foods causing their price to rocket, increasing hunger in developing countries. Yesterday the Mail on Sunday revealed that a hedge fund bought over 250,000 tonnes of cocoa beans, a move designed to make millions for the hedge fund but losses for people in the UK who are partial to a Twix or farmers in developing countries who are finding it impossible to plan what to grow when the prices are rising and falling like a yo-yo.

Banks and hedge funds ‘buy’ cocoa and other food all the time but they don’t normally request delivery and stash them in warehouses in Liverpool and London. Usually, they buy and sell without ever seeing a single bean or grain, they only see money. Prices rise and fall as a mirror image of speculative hot money flooding in and hot footing it out.

You may have heard the author of our report, Tim Jones on BBC Radio 4 Today programme this morning. In the Guardian today our report was greeted...

* New report: Gambling by banks like Goldman Sachs increased food prices

* UK must 'back, not block' new banking reform in Europe, say campaigners

* Over 800 people have pledged to call the FSA to demand action to stop banks gambling on food

Today banks have come under fire for risky and secretive gambling on coffee, cocoa and wheat which is playing havoc with prices.

Lovers of chocolate spread on toast with a cup of coffee in the morning face paying more for their breakfast as prices have rocketed on the international markets.

The same banks, secretive hedge funds and dangerous speculation that caused the sub-prime mortgage crisis and global financial meltdown are also causing food prices to rise massively, argues new research from anti-poverty campaigning group, the World Development Movement.

Cocoa prices have reached their highest levels for 33 years, increasing by 150 per cent over 18 months which could force some chocolate makers to raise prices and in some cases use less cocoa.

Although poor harvests acted as the initial trigger for price rises in cocoa, the finger is being pointed at hedge funds and big...

In 'The great hunger lottery', World Development Movement has compiled extensive evidence establishing the role of food commodity derivatives in destabilising and driving up food prices around the world. This in turn has led to food becoming unaffordable for low-income families, particularly in developing countries highly reliant on food imports.

The US Senate is expected to approve a landmark bill on Wall Street reform later today, covering bank bonuses, financial transparency of complex derivatives, regulation of hedge funds and food markets. This legislation will send shockwaves across the global financial sector, but WDM fears that proposals for a similar EU crack down of the banks may not be backed the UK government.

US legislators have been under enormous public pressure to regulate secretive and complex derivative trading, which is blamed for triggering the global economic crisis.

France and other European nations are strongly supportive of similar proposals at the EU level, but we are concerned that the UK government could seek to block such reforms and are launching a new campaign next week to push the government to take the lead in pushing for financial reform in Europe. We point to the City of London’s track record of lobbying against EU efforts to force the so-called ‘shadow banking’ system out into the open, and are launching a campaign to get the government to crack down on excessive speculation by the banks.

Deborah Doane, director of the World Development Movement said:

“While the US is passing legislation in this area, the EU is well behind the curve. Because...

In The Great Hunger Lottery, the World Development Movement has compiled extensive evidence establishing the role of food commodity derivatives in destabilising and driving up food prices around the world. This in turn, has led to food prices becoming unaffordable for low-income families around the world, particularly in developing countries highly reliant on food imports.

Nowhere was this more clearly seen than during the astonishing surge in staple food prices over the course of 2007-2008, when millions went hungry and food riots swept major cities around the world. The great hunger lottery shows how this alarming episode was fueled by the behaviour of financial speculators, and describes the terrible immediate impacts on vulnerable families around the world, as well as the long term damage to the fight against global poverty.

In the report we describe how the current situation came to pass, the risks of another speculation induced food crisis, and what specifically can be done by policymakers here in the UK as well as in the US and EU to tackle the problem.

Download the report

...

Rosie Rogers, used to be campaigns and policy intern

Bright-eyed and ready to save the world in one internship, I was ready to take on any challenge! As part of our new commodities campaign. I was asked to find out how to complain about Goldman Sachs (GMS). A simple task I thought…

FSA: "You have no rights"

First stop, the Financial Services Authority (FSA). I called the general enquiries number and was met with a friendly 'customer services' handler who was happy to answer my questions, but kept asking who I worked for and where I was calling from - my poker voice served me well!. I was told that the FSA don’t deal with formal complaints and that since I’m not a GMS customer, I 'have no rights'.

I was advised to make a formal complaint with GMS, then they had 8 weeks to respond and if the response was not satisfactory, I should take my case to the Financial Ombudsman Service who was ‘better equipped to deal with complaints’. I then stated to my previously friendly FSA buddy – who was now slightly fed up – that it’s ridiculous that only customers have rights, to which he reeled out some standard FSA statement about what the FSA can and can’t do. I was sent a standard leaflet on how to make...

I’m really pleased to see that journalist and art critic Johann Hari, described by the Daily Telegraph as one of the most influential people on the left in Britain, wrote a piece for the Independent last week urging people appalled about bankers speculating on food prices and causing hunger to get involved in WDM’s food speculation campaign. The article was circulated widely on the internet, including being passed on by Stephen Fry, and also appeared in the Huffington Post on Saturday. In it, Hari writes:

Only one force can stop another speculation-starvation-bubble. The decent people in developed countries need to shout louder than the lobbyists from Goldman Sachs. The World Development Movement is launching a week of pressure this summer as crucial decisions on this are taken: text WDM to 82055 to find out what you can do.”


He describes how deregulation of commodity markets in the 1990s has enabled bankers, such as Goldman Sachs and Deutche Bank, to speculate on the price...

Welcome to the July issue of Think Global.  This month's newsletter contains the all the latest on some campaign successes in trade and climate debt!  Plus there is full information on how you can take action in our new food speculation campaign. 

 

 

Thank you for joining our fight to stop bankers betting on food and causing hunger.

We will keep you updated as the campaign progresses.

Spread the word!

Click here to open an email to send to your friends

Are you on twitter? Send a tweet about the campaign (and we'll give you a shout out)

Support our campaigns

WDM relies on donations to support our campaigning work. Join us from £3 a month online or make a cash donation here.

Baffled by 'derivatives'? Do you know your 'over the counter' from your 'hedge'? Food speculation is an issue that can get quite technical but here's our jargon busting glossary which will help steer you around the murky waters of financial markets.

Clearing exchange

A clearing exchange acts as the intermediary between the buyer and seller of a derivatives contract. So instead of the buyer and seller interacting directly, the clearning exchange becomes the buyer to each seller, and the seller to each buyer, of a contract. The clearing entity makes the payments to each side of the deal,
covering the buyer and seller from the risk of the other side defaulting. This in turn provides financial stability by insuring both parties against default.

In contrast, derivative contracts which are sold directly between two parties (see over-thecounter derivatives below) can be defaulted on as either side may not deliver either the goods or the money. It was non-payment of derivatives
contracts (not traded through clearing exchanges) which contributed to the 2007/08 financial crisis.

In return for being protected from default, buyers and sellers pay a fee to clearing
exchanges. This protects traders from default by the other party and creates a...

Banks are earning huge profits from betting on food prices in unregulated financial markets. This creates instability and pushes up global food prices, making poor families around the world go hungry and forcing millions into deeper poverty. It’s time to stop bankers from gambling on hunger.

Download the briefing

Cover of the betting on hunger report

Banks are earning huge profits from betting on food prices in unregulated financial markets. This creates instability and pushes up global food prices, making poor families around the world go hungry and forcing millions into deeper poverty.

What is the problem?

A woman tossing black beansBig investment banks are betting on the price of staple foods, like wheat, maize and soya. This is causing food prices to rise and making people go hungry.

Read more

What is being done?

A thumbnail of the infographicWDM is campaigning to put pressure on the UK government to back...

Tim Jones, used to be policy officer

I don’t drink coffee. Good job as the price of coffee traded in London shot-up by 20 per cent in just three days at the start of this week.

What could possibly cause such a huge jump in prices? Maybe it’s extra demand for the stimulant after the lack of stimulation in the first week of world cup matches? Seems unlikely.

Has a massive catastrophe wiped out huge swaths of coffee production? Not that I have heard. World exports of coffee have fallen a bit between October and April. But this should cause a gradual rise in price, not a sudden spike.

The Financial Times reports that hedge funds have been betting on the price of coffee falling for the past two years. This betting or speculation has depressed the price of coffee, leading to lower prices for farmers, but a cheaper cuppa for you.

Earlier this week one unidentified trading company decided to call the hedge funds on their bets; they asked for them to sell some real coffee. This is a bit of a problem in the world of speculation, where contracts in food are continually traded without any food changing hands. The hedge...

Raj Patel is the author of 'Stuffed and Starved: the hidden battle for the world food system', an excellent analysis of how corporations dominate the world food system to the detriment of ordinary people the world over, and also what we can do about it. The interview below was filmed at the Sydney Writers' Festival, and although 24 minutes long, is a great overview of some of the issues involved in creating democratic and sustainable food systems.

The battle for the world food system: an interview with Raj Patel from Jill Hickson on Vimeo.

Welcome to the June issue of Think Global.

This month’s newsletter contains the latest on our clean up the banks and climate justice campaigns, as well as information about our World Cup themed website – ‘Who should I cheer for?’ and information on our new food campaign, to be launched in mid June.

Hear about the fantastic campaigning WDM groups have been doing recently and get a preview of the programme of activities at our activist gathering on 19 June
 

Reports by Tom Lines, commissioned by the World Development Movement, on the impact of speculation on food and proposals of how to regulate it.

This weekend Cochabamba celebrated the tenth anniversary of its water wars. The small city, nestled at the foothills of the Andean mountain ranges, previously little known to the outside world, suddenly shot to fame in 2000 when cochabambinos forced Bechtel, a giant American corporation, out of town. Bechtel, under a subsidiary called Agua del Tunari, had taken over the town’s water supply in privatisation deal, pushed by the World Bank, that caused water rates to rise by over fifty percent in a matter of weeks. Taking place shortly after the ‘Battle in Seattle’ in 1999 and just before the G8 in Genoa in 2001, two iconic moments in the battle against the imposition of neo-liberal policies on the global south, the struggle in Cochabamba became an inspiration to people across the world, demonstrating what a small group of determined people could achieve.

two statues from the water campaign standing against a painted coke background
Two statues reading 'sin agua, no hay vida' (without water, there is no life') and '10 anos de lucha' (10 years of struggle)

The water wars bought together campesinos from the rural...

Arriving in a new country is often a total sensory overload: sights, sounds, smells. And then, as you quickly get used to it, things that had once, not long before, seemed so different and fascinating fast become so normal you barely even notice them. With this in mind, having just arrived in Bolivia this evening, I thought I’d try to capture some of my feelings and thoughts.

Bolivia is a country that has long fascinated me, and I’m excited to be here. There’s a sense in the air of something exciting coming together, people from so many diverse backgrounds and experiences meeting to discuss where next for the global climate justice movement in a way that brings the people who should be at the heart of the discussions back into the picture. If this happens as intended, it will be quite the opposite of my experience at the flawed UN climate talks in Copenhagen when, by the end of the two week negotiations, the majority of civil society delegations were literally locked out of the proceedings, and even most southern government country delegations weren’t able to enter the room where the Copenhagen Accord was being negotiations.

...

Kidtronic wants new world order

Global capitalism has entered a fundamental crisis of legitimacy, triggered by a ‘perfect storm’ of the banking meltdown, rising energy costs and a spike in world food prices. Governments in the world’s richest countries are looking on in horror as the debt and fossil-fuelled fantasies on which they have built their political mythologies crumble around them.

Amongst those witnessing the recent self-immolation of the financial system have been the world’s two billion poorest people, for whom the credit crunch is a permanent way of life. As a grim footnote to the main headlines about down-and-out bankers, the UN’s distinctly unglamorous Food and Agricultural Organisation (FAO) recently announced that rising food prices have plunged an additional 75 million people below the hunger threshold in the past year. This has brought the estimated number of undernourished people to a staggering 923 million worldwide.

This is the real evidence that 30 years of financial deregulation, trade liberalisation and reckless fossil fuel consumption has failed spectacularly to deliver just or sustainable progress. The end of the end of history...

Ahead of the 2010 UK general election, WDM policy officer Tim Jones gives a snapshot of where the parties stand on issues that affect the world’s poorest people.

WDM and over 100 other organisations have challenged the major political parties to back a development manifesto, Vote Global. So how do the main parties stack up on key global poverty issues?

Trade justice

For the past thirty years imposition of free trade across much of the developing world has hindered economic growth and increased poverty and inequality. In contrast, countries that have been able to resist free trade have managed to cut poverty and increase employment. Since 1997, the Labour government has supported the EU, WTO, IMF and World Bank pushing free trade on developing countries.

The Conservatives and Liberal Democrats also support free trade and the current unfair round of world trade negotiations. The Green Party is distinct in calling for “fair trade not free trade” and for committing to push for reform of aggressive EU trade policies. Plaid Cymru also recognise the injustices of current international trade.

More and better aid

Labour, the Conservatives, Liberal Democrats, SNP and Plaid Cymru all support spending 0.7 per cent of UK income on aid...

So far the US and Europe has managed to find $3 trillion to bail out the banks, more than $1 trillion of which has gone to the UK banking sector. The financial crisis, caused by the banks themselves, has cased significant increases in poverty and inequality in both the developed and developing world.

This is why WDM is part of a coalition pushing for a financial transaction – ‘Robin Hood’ – tax  to de-incentivise risky trading practices and reduce volatility in markets. This is an excellent opportunity to turn the crisis of the bankers into something good for the world.

A Robin Hood tax could raise an estimated $600-700 billion a year which could be used for pay for socially useful projects in the UK and abroad. The tax should be levied on all bank trades, ranging from shares to foreign exchange and derivatives. The cash generated could be spend on a range of projects, including combating poverty at home and abroad as well as fighting climate change.

The tax would also prevent speculative bubbles arising, such as the one that caused the global food crisis in 2008 and led millions more people into hunger.
Whilst we campaign for an international tax, Europe and the UK do not have to wait for the rest of the...

Bankers resisting plans to cut bonuses and reform the sector at the World Economic Forum have inspired anti-poverty campaigners to renew demands for a financial transaction tax to reduce global inequality.

The World Development Movement, one of the organisations backing the tax, says the additional revenue could finance a ‘green new deal’ in rich nations while providing money for poorer countries to develop low carbon economies and cope with the impact of climate change. The tax would also increase financial stability and dampen the risks of sudden food and oil price rises by deterring reckless speculation on debt, equity and commodity markets.

Julian Oram, head of policy at the World Development Movement said:
"The financial sector has grown way too big for its boots, to the extent that the whole global economy is vulnerable to the fortunes of bankers gambling on the markets.

“It's absurd for bankers to be up in arms about regulation given the damage they’ve caused, but it's encouraging us to campaign harder. This is an industry that generates $50 trillion worth of transactions a year. Taxing just a tiny fraction of this would slow down the financial roulette wheel and generate billions of dollars in public revenue that could be of huge benefit to...

Kate Blagojevic, used to be Press Officer

The post-Copenhagen showdown has featured politicians, NGOs and commentators like George Monbiot and Mark Lynas slogging it out over whether to blame the US or China, for the lack of progress in Copenhagen. All reminiscent of our 2007 report; Blame it on China?

Yesterday it got a little more personal when Mark Lynas, in the New Statesman, suggested that it is wrong to call for climate justice. Mark accuses the World Development Movement of saying “anything calling into question the roles of developing countries must be a plot by the rich former colonial powers”. I have trawled our website and can't remember writing that. Perhaps he is referring to the fact that we were tough on Obama;...

We left Paris for Lille on Sunday morning, having been hosted by the Confederation Paysanne overnight. No sooner had we set off on the bus than Olivier, who has been one of the main organisers of the caravan, announced that we had an emergency on our hands...

One of the climate caravan participants, José Goyes, is part of a movement in Colombia called the Resguardo de Honduras Cauca. He lives in a fertile area in the south of the country, which is rich in vegetation, but also in mineral resources such as gold. This area has recently become the sight of a bitter struggle by the indigenous people whose livelihoods depend on this land, and the multinational corporations who are intent on exploiting it, apparently at any cost.

As I write, Canadian multinationals, and in particular a corporation called Cosigo Resources (Vancouver), are embarking on a programme of mass displacement of indigenous populations in south east Colombia. The Colombian government is supporting these multinationals; in the name of the Colombian government paramilitaries are persecuting and killing local indigenous people who oppose the forceful seizure of their land.

Many of the indigenous leaders, including José Goyes, have been threatened because they oppose the exploration of Cosigo...

I mentioned roosting chickens in an earlier blog, I’m not obsessed with them honestly but chickens have come up again during my time in Geneva. Ghana used to have a buoyant poultry industry but subsidised poultry from the EU has decimated the Ghanaian poultry industry.

I heard Kenneth Quartey who represents Ghanian poulty farmers say that: “If the Doha Round concludes we see little space for agriculture in Ghana and in Africa, where 60 per cent of the population relies on agriculture for its income. We just simply do not know what to do next.” This sentiment is echoed around the world by farmers and fishers, labour groups and environmentalists who all see a Doha conclusion as a complete and utter disaster.

The WTO ministerial closed today with the reaffirmation that development is still central to the Doha round and a 2010 deadline is still on the cards. It beggars belief, that the WTO has the cheek to use the word ‘development’ when its rules and policies are decimating entire sectors (e.g. chickens in Ghana and cotton in West Africa) causing massive job losses in its wake and derailing much needed poverty alleviation in developing countries.

Development is also about enabling countries to...

Benin, Burkina Faso, Chad and Mali are collectively known as the ‘cotton 4’ because they are cotton producing countries in West Africa and have been trying to the get the US to reduce their cotton subsidies for almost a decade.

The US subsidises its cotton production which leads to over-supply and subsequently a low market price for cotton. Today I heard Ambassador Samuel Amehou from Benin speak at an Africa Trade Network event about the desperation that farmers are feeling and the injustice of the situation “Farmers are losing hope for their cotton. Something needs to be done urgently otherwise our cotton sector will die and many farmers will end up in a bad situation.”

Tomorrow the WTO ministerial closes and no doubt, there will be some statement that re-affirms the Doha round to be about development. There may even be a renewed commitment to conclude the round by the end of 2010. But this cotton issue clearly illustrates the WTO negotiations are not about development, they are not about poverty alleviation and not about giving farmers in the cotton 4 a fair chance to make a sustainable living. And this is just one example of how a WTO deal would hurt the poorest people in the...


I need to apologise for ‘dissing’ my badge yesterday because today it proved to be a really useful friend. It got me and 30 other trade campaigners from around the world, into the ministerial conference where we were able to stand just outside of the door to the hall where the opening plenary was held. As the delegations were entering the hall, they were greeted with us singing WTO protest songs to the tune of ‘Jingle bells’ and ‘It’s been a hard day’s night’.


 

There was a great atmosphere as most of the delegates found it amusing and enjoyed the commotion. The opening session is often littered with speeches about the merits of the WTO but we wanted the delegates and press to see that there is much opposition to WTO policies across the world.

I met Pabs Rosales who is a fisherman from the Philippines (they call themselves ‘fisherfolk’ so that is how I will refer to them from here on) who leads the Progressive Fisherfolk Alliance in the Philippines.

...

Today I have been attending briefings in preparation for the ministerial conference which starts at 3pm tomorrow afternoon. I walked to the WTO building to pick up my badge which will allow me access to the ministerial as well as the NGO centre.

During a NGO briefing, we were told that we could access the open spaces at the ministerial conference (book shop, coffee bar, loos) but that the main sessions would be closed and only 42 people from NGOs (there are around 500 NGO representatives in total here) could attend the opening plenary. Most of the NGOs in the room were not happy with the lack of access but shrugged their shoulders and rolled their eyes acknowledging this is how the WTO works – unaccountable and untransparent. A Norwegian campaigner commented that when he attended the UN Food and Agriculture Organisation summit, NGOs were allowed access to the meetings and were even allowed to take the floor in some debates. The director of public affairs could only confess that the WTO were not that ‘advanced’ yet.

So my badge can get me coffee (which I don’t drink) and books (on free trade)…

...

I arrived in Geneva at 5pm this evening (having left my home in London at 6am) and I had to quickly drop my luggage off at the hotel, work out the tram system and then get myself to a meeting with other trade campaigners from around the world. I arrived at the meeting, just as the pizza did, so not bad timing I thought.

I’m here for the World Trade Organisation (WTO) ministerial conference which is taking place on 30 November – 2 December. Ten years on from the Seattle protests that shut down the talks in 1999, the world finds itself in a perilous state faced with global emergencies in the economy, food, climate and employment. The chickens have come home to roost. Let me explain why…The economic crisis finds its roots in the deregulation of financial markets that enabled banks and lenders to engage in reckless lending and ultimately brought the global economy to its knees. The US and EU were key drivers behind this move to deregulate, they exported their deregulation agenda and got it enshrined in the WTO rules but now it is biting them back.

Last year, world leaders agreed on the need for more regulation to prevent a reoccurrence of the financial crisis, yet there are WTO rules that actually constrain governments from regulating their financial sectors. There is...

The UK government comes under fire today in a new report which reveals that the current climate finance proposals, likely to dominate the weekend’s G20 talks, are likely to increase third world debt, and will be 'grossly inadequate' to tackle the scale of the problem.

The report by anti-poverty groups the World Development Movement and Jubilee Debt Campaign calculates that the UK alone owes a 'climate debt' to developing countries of over £17 billion each year for its contribution to climate change – an amount that is significantly more than that pledged so far.

They issued a stark warning that the issue of climate debt will be a 'Copenhagen deal-breaker' for developing countries, and the hope of getting a fair deal hangs in the balance.

The report, 'The Climate Debt Crisis', heavily criticises the UK's current policy of channelling its 'climate aid' through the World Bank, and of promoting the World Bank as the main hub of climate finance. It condemns the World Bank for distributing climate finance as loans, not aid, and for allowing finance to be used for new coal power stations, not low carbon energy investment. The campaigners are...

WDM has also run one-off campaigns on individual transnational companies (TNCs) in support of communities or workers in poor countries. Companies included Disney, Nestlé, Rio-Tinto, Shell and P&O.

Disney sweatshop demo

Mining - Rio Tinto (formerly RTZ) 1996 - 1999

Background

The Grasberg opencast mine lies in the forested hills of West Papua and exploits gold and copper deposits that are amongst the largest in the world.  The mine is operated by an Indonesian subsidiary of the US company Freeport McMoran, in which Rio Tinto has a significant share.  The company has transformed the rainforest into a vast complex of mines, roads, towns and the world's longest tramway.  But local people have not benefited.  Instead, they have seen their hunting ground taken over, their rivers polluted and their sacred mountain ravaged.  They were neither consulted nor given adequate compensation.  Hundreds of people were displaced by the first mine site and have been resettled in a crowded and unhealthy township. 

Campaign

Since March 1996, WDM, together with Partizans, TAPOL and Survival, has...

Campaigners from RSPB, the World Development Movement, Christian Aid, Oxfam, WWF and Greenpeace will hold a 'coal kills' vigil today outside the Department for Energy and Climate Change on Whitehall.

At 16.30, the organisations' CEOs and campaigners will hold up images of glaciers, polar bears, birds, food and water supplies of the millions of people in the developing world who will lose their lives and livelihoods and a stark message of 'coal kills'. These will represent what the campaigners believe that Climate Minister, Ed Miliband will save if he makes the right decision - to rule out new coal.

The charities are coming together to remind Ed Miliband that he must go further on his policy proposals on coal and provide a cast-iron guarantee that no new dirty coal-fired power stations will be built in the UK unless all of the carbon emissions are captured from the start.

The CEOs will invite Ed Miliband to meet with the groups to hand him personally a statement detailing the thousands of powerful pledges and statements that each organisation has collected from supporters. These include letters from young RSPB members asking Miliband to do more, photos from Christian Aid supporters asking him to reconsider, and promises of thousands of Greenpeace and World...

Welcome to the September issue of Think Global; after our August break this month's newsletter is packed with the latest on our climate justice and trade campaigns. We also have information on a plethora of campaign events happening over the next few months; from meeting Yes Man Mike Bonnano at "Another world is possible" in Edinburgh on Saturday 19 September, to initial ideas about WDM's 40th anniversary next year.

There is also a round-up of all the Big If activities groups have been doing over the summer, an interesting article on campaigning against coal tar in Canada, and a book review of "Food Rebellions! Crisis and the hunger for justice." Plus lots more of course.

The World Development Movement is part of the Climate Justice Now! network, which is a southern-led coalition of around 150 organisations and movements campaigning for a globally just and effective solution to the climate crisis.

CJN demo in Poznan. Credit: Ben Powless

Climate Justice Now! principles

Communities in the global south as well as low-income communities in the industrialised north have borne the toxic burden of this fossil fuel extraction, transportation and production. Now these communities are facing the worst impacts of climate change - from food shortages to the inundation of whole island nations.

Inside the global climate negotiations, rich industrialised countries have put unjustifiable pressure on southern governments to commit to emissions reductions. At the same time, they have refused to live up to their own legal and moral obligations to radically cut emissions and support developing countries' efforts to reduce emissions and adapt to climate impacts.

Climate Justice Now! will work to expose the false solutions to the climate crisis promoted by these...

New stats showing Kingsnorth's impact on water, food, refugees, drought and death

A new Kingsnorth coal plant could be responsible for 100,000 more people in the developing world losing their water supply in dry seasons reveals the World Development Movement today.

The anti-poverty campaigners have released a catalogue of shocking new statistics that show the devastating human impact that carbon emissions from a new Kingsnorth plant alone could have on people in the developing world because of its contribution to climate change. The World Development Movement reveals:

  • 100,000 more people losing their dry season water supply
  • Up to 300 more people dying every year due to malnutrition
  • Up to 60,000 more people suffering from drought in Africa
  • 50,000 more people going hungry due to drought and lower crop yields
  • Up to 40,000 more people exposed to malaria
  • 20,000 people being forced our of their homes and becoming climate refugees
  • Around 30,000 more people losing their homes every year due to coastal flooding

Deborah Doane, director of the World Development Movement said:

These figures reveal, for the first time, the devastating human impact of building a new Kingsnorth coal power...

Green New Deal

In response to the overlapping economic, climate change and energy crises, the World Development Movement is calling for a Green New Deal for the world’s poor. A Green New Deal means investment in low-carbon projects, renewable energy and green jobs. It also aims to bring about greater economic equality by restructuring the financial system to support a green transition.

This approach links radical reform of the global financial system with a massive green investment programme to enable poor countries to pursue low-carbon, socially equitable development pathways. It is about redirecting credit away from the speculative casino economy and towards the real productive economy, particularly public infrastructure in the developing world. It involves a package of measures to channel both public and private financial flows into poor countries to develop green energy, transport and construction sectors, and to build a ‘carbon army’ of new jobs in the green economy that could lift millions out of poverty.

The Green New Deal is about a massive environmental transformation of the economy to tackle the triple crunch of the financial crisis, climate change and insecure energy supplies. Specifically, it is about:

  • More and...

The World Development Movement today expressed its huge disappointment that the European Union has proceeded with signing a trade deal with Botswana, Lesotho and Swaziland.

Vicky Cann, trade policy officer says: “Trade deals like this one between Europe and Botswana, Lesotho and Swaziland open African markets up to European multinational companies before they are fully able to compete on equal terms. Such unfair deals threaten local jobs and labour standards. They also disrupt the regional trade in southern Africa, something to which the European Commission seems oblivious”.

South Africa, Angola and Namibia have all chosen not to sign this deal, as it currently stands, in a negotiation process that has been wracked with controversy. Namibia’s trade and industry minister Hage Geingob has said, "We might be small, but we are still a sovereign state. You cannot smoke cigars in boardrooms in Brussels and bulldoze us."

In a 2008 report which looked at the existing Europe-South Africa free trade deal signed in 1999, the World Development Movement documented the resulting reductions in tariffs on EU products which had led to an increase in imports from the EU and a negative impact on South Africa’s current account balance. The food processing,...

The World Development Movement is delighted to announce the appointment of Deborah Doane as its new director, who started 1 June at the UK’s leading grassroots, anti-poverty campaigning organisation. The World Development Movement looks forward to an exciting new era led by Deborah's dynamism and a wealth of experience from over 15 years working on social and environmental issues.

Deborah Doane, said:

"The root causes of the current global economic and the climate crises are the issues that the World Development Movement works on. And by working at the cutting edge, we now have the greatest opportunity to tackle the root causes of global poverty and injustice – and realise a better future for the lives of poor people around the world.

“The World Development Movement has been one of the most effective organisations, working at the forefront of anti-poverty campaigning for nearly forty years, in partnership with campaigners from around the world. I’m delighted to be able to take the organisation forward and build on the excellent work of my predecessor, Benedict Southworth, who is moving on after nearly 5 years as director to become the primary carer of his children, undertake a Masters degree and consultancy work."

Deborah was...

This briefing includes the World Development Movement's critique and recommendations to the G20 leaders on the following areas: trade v protectionism; refuelling the IMF; resurrecting the WTO Doha development round; the climate crisis and the Green New Deal.

This is not just a banking crisis.

The banks collapsed and were bailed out. The global economic system as a whole has broken down, and must be radically revised to ensure that it puts people and the planet first.

A consequence of the capitalist casino system of international finance and consumption is the climate crisis. The economic and climate crises are intrinsically linked and should have been addressed as such by the G20 leaders.

This meeting defined the future of the global economy more than any other in the last sixty years; and as such had profound implications for the world’s poor and efforts to tackle climate change. We want an economic system that is up to the challenges of the 21st century.

Dr Julian Oram, head of policy at the World Development Movement, said:

"The G20 must not prescribe more of the same toxic medicine that led to the current...

There is a common perception that the food crisis in Malawi has been caused by the floods that ruined the planting season in 2001, or by widespread government corruption and mismanagement. These undoubtedly have contributed to the crisis. But there is another cause, which has been even more significant – inappropriate policies of donor agencies, led by the International Monetary Fund (IMF).



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