The Great Divergence

"All my life I've heard Latin America described as a failed society (or collection of failed societies) because of its grotesque maldistribution of wealth. Peasants in rags beg for food outside the high walls of opulent villas, and so on. But according to the Central Intelligence Agency (whose patriotism I hesitate to question), income distribution in the United States is more unequal than in Guyana, Nicaragua, and Venezuela, and roughly on par with Uruguay, Argentina, and Ecuador. Income inequality is actually declining in Latin America even as it continues to increase in the United States. Economically speaking, the richest nation on earth is starting to resemble a banana republic. The main difference is that the United States is big enough to maintain geographic distance between the villa-dweller and the beggar".....Timothy Noah.
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How Three Firms Came To Rule The World

"One often hears the statement that agriculture is changing and we must adapt to the changes", says William Heffernan, a professor of rural sociology at the University of Missouri. "Few persons who repeat the statement really understand the magnitude of the changes and the implications of them for agriculture and for the long-term sustainability of the food system. It is almost heresy to ask if these changes are what the people of our country really want or, if they are not what is desired, how we might redirect the change. These changes are the result of notoriously short-sighted market forces and not the result of public dialogue, the foundation of a democracy. Neither are the changes the result of some mystical figure or an 'invisible hand'."

Earlier this year the Farmers' Union hired Heffernan to undertake a study on consolidation in agricultural trade. Heffernan concluded that once you disentangle a web of subsidiaries, mergers, joint ventures, parternships, side agreements, marketing arrangements and alliances you find that "three food chains dominate the global food production system". These chains are: Cargill/Monsanto; ConAgra and Novartis/ADM. Even so, Heffernan notes that because of lax reporting requirements it's difficult to get a fix on precisely what these companies own and how they go about doing business. "Cargill has operations in 70 countries and it's a privately held firm. How do we get all of the necessary information? We've exposed the tip of the iceberg, but exposure only indicates the type of information needed to understand the global food system."

Heffernan points to the Cargill/Monsanto cluster as one of the most dangerous of the new alliances. In 1998 Monsanto and Cargill announced that Cargill had sold its vast seed operation to Monsanto (the world's leading biotech outfit) and entered into an agreement with the chemical company to develop new kinds of crop biotechnology. This alliance presents distinct benefits to both companies but dangers to consumers, farmers and the environment. A case in point is the alliances' so-called terminator gene. "No longer will Monsanto have to depend on access to farmers' fields for collection of tissue samples to make sure farmers do not keep seed from one year's crop to plant the following year", Heffernan warns. "Use of the terminator gene will mean that all crop farmers must return each year to obtain their seed from seed firms, just as corn producers have had to do for the past half-century."

If the press, which rarely mentions agricultural issues anymore, doesn't take this turn of events seriously, the corporate leaders of the agri-conglomerates certainly do. And they are not the least bit bashful about what's at stake. Dwayne Andreas is the politically wired former CEO of Archer Daniels Midland. He recently boasted to Reuters that he wanted to make ADM the world's dominant agriculture firm because, to his way of thinking, there's simply nothing more powerful than controlling the world's food supply. He said agribusiness is more powerful than the oil industry.

"The food business is far and away the most important business in the world," Andreas said. "Everything else is a luxury. Food is what you need to sustain life every day. Food is fuel. You can't run a tractor without fuel and you can't run a human being without it either. Food is the absolute beginning." (read more)

Liberal Media?

Ha!...

In the United States, movie production is known to be dominated by major studios since the early 20th Century; before that, there was a period in which Edison's Trust monopolized the industry. The music and television industries recently witnessed cases of media consolidation, with Sony Music Entertainment's parent company merging their music division with Bertelsmann AG's BMG to form Sony BMG and TimeWarner's The WB and CBS Corp.'s UPN merging to form The CW. In the case of Sony BMG, there existed a "Big Five" (now "Big Four") of major record companies, while The CW's creation was an attempt to consolidate ratings and stand up to the "Big Four" of American network (terrestrial) television.

There may also be some large-scale owners in an industry that are not the causes of monopoly or oligopoly. Clear Channel Communications, especially since the Telecommunications Act of 1996, acquired many radio stations across the United States, and came to own more than 1,200 stations. However, the radio broadcasting industry in the United States and elsewhere can be regarded as oligopolistic regardless of the existence of such a player. Because radio stations are local in reach, each licensed a specific part of airwave by the FCC in a specific local area, any local market is served by a limited number of stations. In most countries, this system of licensing makes many markets local oligopolies. The similar market structure exists for television broadcasting, cable systems and newspaper industries, all of which are characterized by the existence of large-scale owners. Concentration of ownership is often found in these industries.

In the United States, data on ownership and market share of media companies is not held in the public domain. Academics, for example at MIT Media Lab and NYU, have struggled to find data that show reliably the concentration of media ownership.

On June 2, 2003, FCC, in a 3-2 vote under Chairman Michael Powell, approved new media ownership laws that removed many of the restrictions previously imposed to limit ownership of media within a local area. The changes were not, as is customarily done, made available to the public for a comment period.

Single-company ownership of media in a given market is now permitted up to 45% (formerly 35%, up from 25% in 1985) of that market.

Restrictions on newspaper and TV station ownership in the same market were removed.

All TV channels, magazines, newspapers, cable, and Internet services are now counted, weighted based on people's average tendency to find news on that medium. At the same time, whether a channel actually contains news is no longer considered in counting the percentage of a medium owned by one owner.

Previous requirements for periodic review of license have been changed. Licenses are no longer reviewed for "public-interest" considerations.

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Harvest Of Fear

For centuries—millennia—farmers have saved seeds from season to season: they planted in the spring, harvested in the fall, then reclaimed and cleaned the seeds over the winter for re-planting the next spring. Monsanto has turned this ancient practice on its head.

Monsanto developed G.M. seeds that would resist its own herbicide, Roundup, offering farmers a convenient way to spray fields with weed killer without affecting crops. Monsanto then patented the seeds. For nearly all of its history the United States Patent and Trademark Office had refused to grant patents on seeds, viewing them as life-forms with too many variables to be patented. "It’s not like describing a widget," says Joseph Mendelson III, the legal director of the Center for Food Safety, which has tracked Monsanto’s activities in rural America for years.

Indeed not. But in 1980 the U.S. Supreme Court, in a five-to-four decision, turned seeds into widgets, laying the groundwork for a handful of corporations to begin taking control of the world’s food supply. In its decision, the court extended patent law to cover "a live human-made microorganism." In this case, the organism wasn’t even a seed. Rather, it was a Pseudomonas bacterium developed by a General Electric scientist to clean up oil spills. But the precedent was set, and Monsanto took advantage of it. Since the 1980s, Monsanto has become the world leader in genetic modification of seeds and has won 674 biotechnology patents, more than any other company, according to U.S. Department of Agriculture data.

(excerpts from Vanity Fair - read more)

(americanbuilt.us)

Combinations in Restraint of Trade