The U.s. grain arsenal

1
The U.s. grain arsenal

• Food as a weapon

2
Political and Economic Agenda

• President Hoover used food relief to support
  anticommunist forces in Eastern Europe.
• President Carter boycotted grain against Soviet
  Union after their involvement in Afghanistan.
• Post WWII U.S. gave food aid to Italy and
  France to suppress lingering socialist
  sympathizers.

3
Public Law 480

• Pl 480 originated in 1954 as a means to open new
  foreign markets for our agricultural goods.
• Also provided us a tool to control the value of
  our agricultural commodities. We dump excess
  food on foreign markets.
• 30 billion worth of agr. commodities in last 25
  years.

4
Types

• Title 1 Offer low interest loans to
  food-deficient countries so they can pay us back
  in the purchase of U.S. food stocks. Create
  dependency.
• Title 2 Charity donations of food aid to
  friendly countries for emergency and
  non-emergencies. Creates dependency.
• Title 3 Like title 1, but loans are eligible to
  be forgiven. Creates dependency.

5
Examples

• Bangladesh since 1974, 90 of all aid has been
  title 1. Although their government subsidizes
  the price, more than 90 of the food goes to the
  middle class. Advantages the more wealthy and
  disadvantages the poor.
• South Korea in 1975, 6 billion of the proceeds
  from the sale of title 1 credit went to their
  military budget.

6
Cooley Program

• Established in 1971, it further advantaged U.S.
  farmers and agricultural corporations by giving
  funds in local currencies instead of U.S.
  dollars.
• This prevents the depreciation of the dollar.

7
Food Colonialism

• In many cases, title 1 credit has only been
  awarded after formal agreements to increase
  purchases from the U.S.
• Have assisted countries in transitioning into
  wheat and grain dependency and developing
  businesses that require U.S. imports such as
  local livestock.
• EAT AMERICAN!
• Dependency on U.S. imports has strategically been
  implemented to increase our global political
  leverage.

8
Chile

• 1970 Socialist government under president
  Salvador Allende took power.
• White house, CIA, and TNCs, collectively
  suspended all title 1 credits to Chile under
  their common political and economic agenda.
• Food security at risk due to dependency on food
  aid loans.
• U.S. also denied the sale of food of cash.

9
Chile Continued.

• 1973 The socialist Allende government was
  successfully overthrown by a local military coup
  supported by the United States.
• U.S. supported the new government with 52
  million in title 1 credits.
• This made up 84 of all loans to S. America.
• U.S. supported a military dictatorship to
  strengthen its own political and economic power.

10
Chile Aftermath

• Chile became the worlds 9th largest purchaser of
  U.S. arms.
• 30 unemployment.
• Inflation up 600.
• Infant morality up 18.
• 80 of an average citizens income went towards
  food.
• Average caloric deficiency of 40.

11
Changes in PL 480

• 1975 Congress stated that ¾ of title 1 credits
  must be given to poor countries. (countries
  with per capital GNP of 300 or less)
• 83 of non-food aid given out to countries above
  poor line
• Poverty line was changed to 520 so the U.S.
  could continue to lend to ally countries and new
  countries with economic potential in industries
  such as oil.

12
Conclusion

• The United States has and is continuing to use
  food as a means to gain global political and
  economical leverage.
• Humanitarianism and peace have been used to cover
  up and justify this selfish agenda.
• Our history of international food aid
  demonstrates this with the many instances in
  which the U.S. has disregarded democratic and
  poor populations in favor dictatorships and
  militaristic goverments.