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9/13/06

Truth About Trade & Technology - Starving the People To Feed the Cars - by Lester R.Brown

Ethanol Plant
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Starving the People To Feed the Cars - by Lester R.Brown

High oil prices are much more than just a drain on drivers' pocketbooks or a sign of tough economic times ahead; they could also prove to be a leading indicator of the unraveling of our global civilization. That may sound unlikely, or melodramatic. But consider this: Now, almost everything we eat can be converted into automotive fuel. And once the price of oil surpassed $60 a barrel last year, the business of transforming wheat, corn, soybeans and sugarcane into fuel for cars instead of food for people became hugely profitable.

As crops that have long sustained us are diverted to provide fuel, we may encounter the same fate that brought down great civilizations of the past. Plans for new ethanol distilleries and biodiesel refineries are announced almost daily, setting the stage for an epic competition. In a narrow sense, it is one between the world's supermarkets and its service stations. More broadly, it is a battle between the world's 800 million automobile owners, who want to maintain their mobility, and the world's 2 billion poorest people, who simply want to survive. Whenever the food value of a crop drops below its fuel value, the market will convert it into fuel. Ultimately, this dynamic risks driving up world food prices, destabilizing governments in low-income nations and disrupting global economic growth.

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