This article was downloaded by: [King's College London] On: 30 July 2013, At: 10:10 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Review of International Political Economy Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rrip20 Rethinking globalization: the agrarian question revisited Philip McMichael a a Cornell University, Published online: 08 Jul 2008. To cite this article: Philip McMichael (1997) Rethinking globalization: the agrarian question revisited, Review of International Political Economy, 4:4, 630-662, DOI: 10.1080/09672299708565786 To link to this article: http://dx.doi.org/10.1080/09672299708565786 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http:// www.tandfonline.com/page/terms-and-conditions Review of International Political Economy 4:4 Winter 1997: 630-62 Rethinking globalization: the agrarian question revisited Philip McMichael Cornell University 3 1 0 ABSTRACT 2 y ul The agrarian question, like most questions about the trajectory of (capital- 0 J ist) development, was framed as a national question about a national 3 process. This article critiques the latter assumption, arguing, as Karl Polanyi 10 did, that the classical agrarian question was a national interpretation of 0: a global process. It also argues that the current processes of globalization 1 at crystallize the agrarian question in new and challenging ways. The key to ] these argumevts is that the capitalist organization of agriculture is a polit- n o ical process, and is central to the dynamics of an evolving state system d n (including supra-statal institutions). The discussion contextualizes agricul- o L tural developments within the contradictory dynamics of the two main e periods of world capitalism over the last century: the national (develop- g e mentalist) and the global movements. The crisis of developmentalism oll coincides with the crisis of the post-Second World War food regime. It C s is currently generating new social movements that combine original g' and tenure questions with food and green questions, reversing the anti- n Ki agrarianism of the development, or productivist, paradigm. [ y b ed KEYWORDS d a o Agrarian question; globalization; agro-food systems; Chiapas. nl w o D INTRODUCTION The recent rebellion in Chiapas serves notice of a new angle on the agrarian question. On New Year's Day, 1994, hundreds of impoverished campesinos rose up against the Mexican state's continued violation of local rights - most recently embodied in the newly implemented North American Free Trade Agreement (NAFTA). NAFTA is the vehcle of wholesale liberalization of agricultural land and commodity markets - both of which adversely affect the Mexican campesino. However one interprets the sigruficance of this rebellion, in my view it symbolizes the new terrain of the late-twentieth-century agrarian question: the terrain of post-developmentalism. O 1997 Routledge 0969-2290 THE AGRARIAN QUESTION REVISITED The late-nineteenth-century agrarian question (what are the political consequences of capitalist transition in the countryside?) was formulated within the metropolitan political framework of nation building. Barrington Moore's Social Origins of Dictatorship and Democracy (1967) is the classic comparative treatment of this. Moore considers British democ- racy as the model of a completed agrarian revolution in which the peasantry disappeared. His implicit approval of wholesale expropria- tion as the foundation of democracy is telling in two senses. First, it superimposes the problematic of national development on the marxist scenario of proletarianization as the measure of capitalist development. In this respect Moore affirrns the liberal/marxist principle that democ- 3 ratic rights depend upon a certain balance of class power.' Some 'new 01 social movements', basismo for instance, embody a different conception 2 y of the conditions necessary to secure individual rights, which is under- ul stood within the liberal paradigm as the reduction of class inequalities J 30 via formal democracy (Lehmann, 1990). The alternative conception 0 accords a relevance to peasant and community politics hitherto ignored 1 0: by the liberal paradigm. 1 at Second, the violence of nation building - especially the process of de- n] peasantization, for Moore - is understood solely in domestic terms. While o d such violence is instructive, it needs to be complemented, and indeed n o L contextualized, by the violent global encounter within which it occurred. ge This is especially true for Moore's model case of Britain, whose liberal e oll democracy was anchored in colonialism. Time has begun to reveal this C historical truth, as the ex-colonial 'have-nots' challenge democratic 'civi- s g' lization' via migrations to the metropoles: or providing cheap labour for n Ki enterprises moving 'offshore'. That is, one long-term consequence of colo- y [ nialism (including post-colonial 'urban bias') - the massive dispossession d b of rural producers - has begun to subvert the tidy foundations of metro- de politan social democracy (McMichael, 1995). Arguably, colonial chickens a o are hatching, as the process of nation building has begun to unravel. nl w Nation-state formation is a profoundly world-historical process o D (Wallerstein, 1974; Tilly, 1975; Davidson, 1992; Hobsbawm, 1993). Barrington Moore implicitly understood this, but failure to allow it to inform his analysis means that the world-historical impact of the British 'case' on successive state building is virtually ignored, beyond its status as a model case. It was precisely this impact that stimulated the politics of the agrarian question, since the competition of cheap exports from the settler regions of the New World compressed the agrarian transition for European late-starters like Germany and France. The issue became how to manage that transition within the framework of an increasingly urban-based politics. Not only shall I argue that this world-historical context gves new content to the agrarian question. I shall also argue that as world history THEME SECTION has changed, so have the terms of the agrarian question. Briefly, the classical agrarian question occurred at a time of nation buuling, whde the current agrarian question occurs at a time when the nation-state is itself coming under increasing question. Part of this new ferment restores the initiative to rural peoples at the end of a period of world history during which the 'rural' was regarded as a mere residue of pre-modern life. Its stimulus is the phenomenon of 'globalization'. Globalization is currently a fashionable topic. Studies of the new inter- nationalization of agriculture, of the global food system, of transnational food companies and so forth, have appeared recently and shape our understanding of the agro-food system (see, for example, Sanderson, 1985; Goodman and Redclift, 1989; Friedmann, 1993; Le Heron, 1993; 13 Raynolds et al., 1993; Bonanno et al., 1994; McMichael, 1994; Fine et al., 0 2 1996; Burch et al., 1996). It has been claimed that the late-nineteenth- y ul century 'agrarian question', the concern with the role of rural classes in J 0 emerging capitalist democracies, is dead (McMichael and Buttel, 1990). 3 0 A claim such as this stems from the observation that a century after the 1 0: rural sector was a key element of the project of nation building, this 1 at project has been superseded, because of rural demographic decline ] under industrialization, and the erosion of sectoral and national bound- n o aries with ago-industrialization and globalization of food systems. d n o These changes have accelerated a profound 'de-peasantization' in the L e latter half of the twentieth century: g olle the period from 1950 to 1975 . . . saw the most spectacular, rapid, C far-reaching, profound, and worldwide social change in global s g' history . . . [This] is the first period in which the peasantry became n Ki a minority, not merely in industrial developed countries, in several [ y of which it had remained very strong, but even in the Third World b d countries e d (Hobsbawm, 1992: 56) a o nl - in fact everywhere but South and East Asia and sub-Saharan Afnca. w o D THE 'AGRARIAN QUESTION': NATIONAL INTERPRETATION OF A GLOBAL PROCESS? Conventional wisdom understands the 'agrarian question' as an ingre- dient of national politics, concerning the political outcome of the process of incorporation of agriculture into capitalist relations. According to William Roseberry, the 'agrarian question' was a political question given primarily an economic answer: that is, attempts to define the peasantry and its input into national politics usually generated analysis of its class location (1993: 336). In this article I want to explore two alternative propositions: first, that the agrarian question has always been a national THE AGRARIAN QUESTION REVISITED interpretation of a global process; and second, that current processes of globalization crystallize this issue in new and challenging ways. This exploration implicitly addresses Roseberrfs concern with the 'capital-centric' epistemology of the classical agrarian question, super- imposing a Eurocentric history on non-Europeans. A world-historical interpretation subordinates the class-analytic frame to a political under- standing of 'capitalist history', rejecting a capital-logic approach. The goal is to situate localism within changing fields of power, understood as global relations embedded within state practices. It identifies succes- sive state-sanctioned projects, including state-system regimes, that organize commercial agriculture, and in so doing implicate adjacent 3 rural communities and natural resources within broader political and 01 ecological relations. Local agricultural communities may retain a local 2 y dynamic, but they must negotiate retention of that dynamic with various ul 'instituted market' processes as the reach of states and international J 0 agencies expands. It is these overlapping relationships, inhering in 3 0 specific ways in local communities, which constitute the field of nego- 1 0: tiation/resistance, and through which communities confront their 1 at (ongoing) history (Scott, 1985; Roseberry, 1989, 1993). n] There is no doubt that the configuration of agrarian classes, and their o d relationship to the industrialism in nineteenth-century nation-states, n o L were politically consequential (Moore, 1967; Rueschemeyer et al., 1992). e However, from a different perspective there were conditioning global g e oll forces. These were identified by Karl Polanyi in his juxtaposition of C markets and agrarian protectionism in Europe: s g' n International free trade, if unchecked, must necessarily elimi- Ki nate ever-larger compact bodies of agricultural producers. This [ by inevitable process of destruction was very much aggravated by the d inherent discontinuity in the development of modem means of e d a transportation, which are too expensive to be extended into new o nl repons of the planet unless the prize to be gained is high. Once w o the great investments involved in the building of steamships and D railroads came to fruition, whole continents were opened up and an avalanche of grain descended upon unhappy Europe. . . . Central Europe, facing utter destruction of its rural society, was forced to protect its peasantry by introducing corn laws. (1957: 182) In Polanyi's account the peasantry, along with the landed aristocracy, formed the backbone of the protectionist counter-movement across Europe, in the face of cheap grains from the New World. This was a reactionary movement that paradoxically performed the 'socially useful function' of 'stabilizing the European countryside and . . . weakening that drift towards the towns which was the scourge of the time' (Polanyi, THEME SECTION 1957: 185). The reactionary character of this late-nineteenth-century counter-movement crystallized in post-First World War Europe, when agrarian counter-revolutionary politics were deployed by the business classes against the growing working-class movement that threatened the attempt to reconstitute market economy. Within the literature and politics of the 'agrarian question', the political potential of the peas- antry was largely understood in terms of its imminent expropriation by capitalist market processes (Lenin) or preservation (as a 'disguised prole- tariat') in tenant-like relations with large capitalist farmers (Kautsky). In other words, a political question was understood in economic terms that were inadequate in scope - not only because the economic sphere was global, but also because it was politically mediated. 13 Whether we examine agrarian relations as conditioned by global 0 2 forces, or as intrinsically political because states are institutions of the y ul world market (McMichael, 19871, the 'agrarian question' has always been J 0 situated globally. Furthermore, from Polanyi's perspective, the 'fierce 3 0 agrarianism of postwar Europe' and 'the "reagrarianization" of Central 1 0: Europe started by the Bolshevik scare' (1957: 188) were keys to under- 1 at standing how the liberal market project came, paradoxically, to depend ] upon agricultural protectionism. In other words, the fiction of the self- n o regulating market (i.e., its commodification of the social fabric: money, d n o labour and land) was revealed in its historic institutional requirements L e - whether central banking to regulate currencies, labour legislation g e to stabilize the proletariat, or Corn Laws to regulate the supply of oll wage-foods. In each case, for Polanyi, the political by-products were: C s national-constitutionalism, labour-aristocracies and liberal, rather than g' n social, democracies, respectively. These were the foundations of nation- Ki [ statism. The 'great transformation' was, then, the crystallization of this y b movement into a set of relatively coherent national-states with the d e collapse of the world market in the inter-war years. This was the set of d a social democracies that formed within an autarkic movement. Autarkic o nl tendencies, and the growing political weight of organized labour, gave w o rise to the Fordist-Keynesian national political-economic contract of the D post-Second World War era. This was the era of managed capitalism, organized along distinctly national lines (withn the international frame- work of the Bretton Woods system of national currency regulation). It modelled the integration of agriculture and industry, and was buoyed by a protected, high-wage economy based in mass production and consumption. The so-called 'self-regulating market' was a hegemonic construct of the nineteenth-century British state, using its military and commercial power in addition to the discourse of economic liberalism. It embodied two contradictory movements: (1) the attempt to secure a non-territorial global market system in the manner of a colonial system writ large - THE AGRARIAN QUESTION REVISITED with Britain as the 'workshop of the world' complemented by the colonies, including settler colonies, as global sources of food and indus- trial raw materials; and (2) a related nationalist mobilization in the metropolitan world (McMichael, 1985). Rival metropolitan states, through which some of these global circuits passed, reorganized their economies along similar lines in a protective movement designed to secure national and overseas territories. In regard to the competition from cheap grains, for example, Polanyi remarked: 'it had been forgotten by free traders that land formed part of the territory of the country, and that the territorial character of sovereignty was not merely a result of sentimental associations, but of massive facts, including economic ones' 3 (1957: 1834). Each movement clearly conditioned the other, and, to 01 cut a detailed story short, Polanyi's 'great transformation' was the reso- 2 y lution of the contradiction, elevating the cause of national-statism in the ul inter-war years of the twentieth century. J 0 In this resolution lay the seeds of a new, late-twentieth-century project 3 0 of liberalization that is generating a new kind of agrarian question. These 1 0: seeds were: (1) the decolonization movement that was the non-European 1 at analogue of the national movement in the centre, but unfolding within n] a particular world-historical context that subverted southern nation- o d building; and (2) an embedding in the inter-state system of 'managed' n o L agriculture that has become increasingly unmanageable. e g e oll THE NATIONAL MOVEMENT AND ITS LIMITS C s g' n (1) Decolonization Ki y [ Decolonization unfolded via the completion of the nation-state system d b as a historical movement rooted in European imperialism. The construc- de tion of national (developmental) states emulated the western experience, a o whether capitalist or socialist. Embraced by indigenous elites, nation- nl w state building was framed by the neocolonial structures of the Cold War o D - including retention of an international division of labour favouring metropolitan states (the North Atlantic capitalist states and the Soviet Union) underwritten by foreign aid programmes and the Bretton Woods monetary and trade regmes (McMichael, 1996a). Within this framework, decolonization simultaneously promoted and impeded nation-state building in the south. While biased towards the industrial model, western developmentalism included the goal of constructing nationally organized farm sectors. These were based in rural reforms designed to secure national hinter- lands and to build self-sufficiency in basic grains, via green revolution technologies, to accommodate growing urban populations. The capital- ized family farming model associated with this form of agriculture THEME SECTION (Llambi, 1988) coexisted with, and in many cases depended upon, the tropical export sector established under colonialism (for hard currency to purchase technology). But as the global scale of agro-industrial tech- nologies has matured, these two forms of agriculture, tropical exports and basic grains, have been progressively displaced, as this section outlines. During the nineteenth century, under Britain's liberal trade regime, the composition of agro-exports from the colonies changed, as industrial commodities displaced luxuries such as silks and spices. The new indus- trial commodities entering world trade were for consumption by Europe's emerging industrial proletariat (sugar, coffee, tea, cocoa, 3 vegetable oils) and expanding factories (cotton, timber, rubber and jute).3 01 As this colonial complementarity deepened, another pattern of trade with 2 y the ex-colonial settler states (USA, Australia, New Zealand, Canada) ul emerged which would transform the shape of world agriculture in the J 0 twentieth century. Exports of temperate products (grains, meat) from 3 0 these regions supplemented, and then competed with, metropolitan 1 0: agriculture, provisioning the staple diets of European labour forces 1 at (Friedmann, 1987). Whereas colonial agro-export production expressed n] tropical ecologies, settler agro-export production in temperate lands o d replicated metropolitan agriculture, but at lower cost given the new agri- n o L cultural frontier and the flexibility of family farming (Friedmann, 1978). e In the late nineteenth century, settler farming formed the new agricul- g e oll tural core of the world economy, fuelling industrialization in Europe as C well as in the settler states. With the relatively low frontier person-to-land s g' ratio, this strategic provisioning role nurtured a highly productive n Ki energy- and capital-intensive agriculture (Goodman et al., 1987). In fact, y [ this form of industrial agriculture became the model for agricultural b d development in the twentieth century, first in Europe and then in the de post-colonial world (Friedmann and McMichael, 1989; Burbach and a o Flynn, 1974; George, 1984). The model is significant because it required nl w continual external inputs provided through the market, whether techno- o D logical inputs such as oil, inorganic fertilizers, hybrid seeds, machinery, pesticides, etc., or speciality agricultural outputs such as corn and soy feeds for the new intensive meat sub-sector, for example. On a national scale, the model was a vehicle for the integration of industry and agri- culture, fuelling the prosperity of what has been termed the 'Fordist- Keynesian' national economy (Kenney et al., 1989). On the transnational scale, large agribusiness firms coordinated exchanges of these inputs across national boundaries, the exchanges originating in the post-war settlements in Europe and East Asia, whose reconstruction depended on US trade and export credits (Block, 1977; Cleaver, 1977; McMichael and Kim, 1994). The agro-industrial complex thus was simultaneously nation- ally organized and internationally sourced. THE AGRARIAN QUESTION REVISITED In the meantime, agro-industrialization intensified the global division of labour associated with colonialism. While industrial uses of rubber, fibres and some vegetable oils (for soaps, lubricants and paint) had expanded since the late nineteenth century, in the mid-twentieth century diets of processed foods expanded dramatically, deepening the demand for certain tropical products such as vegetable oils and sugar. Fats and sweeteners were the key ingredients of so-called 'durable foods' (Friedmann, 1991), the analogue of manufactured consumer durables associated with industrial Fordism. These tropical commodities, as exports, underwrote post-colonial development projects for a time. However, the role of tropical commodities as exports became increas- 3 ingly precarious as agribusiness technologies matured. Following 01 metropolitan substitution of rubber and fibres (Mann, 1987), the search 2 y for substitutes for tropical food products began as the agribusiness ul complex matured and corporations sought to use by-products of metro- J 30 politan agriculture (e.g. corn syrup, soy oils) as alternatives. 0 While food substitutes appeared during the post-Second World War 1 0: period they did not seriously affect trade volumes until the 1970s and 1 at beyond, when the terms of trade for tropical products declined signifi- n] cantly, as 'import substitution of tropical exports' matured (Friedmann, o d 1991: 74-5). For example, in the USA, the world's largest sugar importer, n o L sugar's share of the domestic sweetener market declined from 72 per e cent to 43 per cent between 1978 and 1985, during which period sugar g e oll imports fell by half. By 1985 all US soft drink sweeteners were supplied C by sugar substitutes. Meanwhile, the EC, with its highly protected sugar s g' producers, became the largest sugar-exporting region in the world. n Ki Producers in Brazil, India, the Philippines, Thailand and several poor y [ African and Caribbean countries consequently lost considerable ground d b in the world market (Hathaway, 1987: 40-1). The same pattern emerged de for tropical oils (palm, coconut, peanut, cotton), which have yielded a o ground to temperate oilseeds such as soy beans, sunflower, canola and nl w mustard (Friedmann, 1991: 77). The moral of this part of the story is o D that substitution has considerably eroded the agricultures fostered by colonialism, upon which southern states depend for export earnings. Meanwhile, post-colonial developmentalism depended on pro- grammes of rural reform to stabilize peasantries: both land and credit reform. Land reforrns sought to replicate the American family farm model. More often than not, land reform was a counter-insurgency strategy of rural stabilization - often in the wake of policies privileging urban classes. East Asian (Japan, Taiwan and South Korea) land reforms, instituted in the late 1940s, were a model in two senses: (1) peasant and tenant militancy was considerable before the American Military Goverrunent land reforms; (2) the reforms reduced tenancy and promoted owner-occupancy on a small-holding basis (McMichael THEME SECTION and Kim, 1994). From then on, land reforms 'came on a "first struggle, first served" basis', revealing their conservative thrust (Araghi, 1995). Agrarian reforms generally bypassed commercially developed farm lands (Araghi, 1995). Accordingly, reforms reconstructed subsistence producers as petty-commodity producers at the same time as they sanctioned agro-industrialism (de Janvry 1981: 203). Varying by crop, ecology and region, much of Third World agriculture has an unequal, or bimodal, pattern, where ratios of scale of farming and percentage of landholding population have been quite inverse. Even so, incorporation of petty producers into commodity circuits often exposed them to market forces and episodes of large-scale e~propriation.F~o r instance: 3 'In Brazil, the government's planned, concerted efforts to modernize and 1 0 rationalize agriculture from small holdings producing food for domestic 2 y consumption into a capital-intensive, export-oriented machine for ul J earning foreign exchange resulted in the uprooting of 28.4 million people 0 3 between 1960 and 1980 - a number greater than the entire population 0 1 of Argentina' (Rich, 1994: 155). 10: The World Bank's new poverty alleviation programmes, begun under at Robert McNamara in the 1970~a,l~so exacerbated peasant deprivations, ] n allegedly displacing 'hundreds of millions of peasants around the world' o d n (Rich, 1994: 91). In internal reports, the Bank acknowledged that nearly o L 45 per cent of its eighty-two agricultural projects (1975-82) were unsat- e g isfactory in alleviating poverty (Rich, 1994: 97). Feder suggests that the e oll fallacy of the World Bank's scheme was expecting credit funds chan- C s nelled into inequitable social settings to remain in the hands of the g' smallholder, and concludes that the (un)intended consequence was to n Ki undermine subsistence agriculture and integrate all agricultural produc- [ y tion into commercial cropping rather than food cropping (1983: 222). b d Re-peasantization did proceed in some regions on the basis of land e ad redistribution and settlement of new frontiers. The World Bank financed o nl large resettlement schemes, notably in Indonesia, Brazil, Malaysia and w o India. Such schemes often simply relocated poverty and have been char- D acterized as resembling 'a war against the earth's rapidly dwindling tropical forests' (Rich, 1994: 95). Nevertheless, in Latin America two- thirds of the additional food production between 1950 and 1980 came from colonization of new land (Grigg, 1993: 185), during this period the number of petty commodity producers with an average of 2 hectares increasing by 92 per cent (Araghi, 1995). In Africa, traditional colonial exports such as tea and coffee were reorganized along smallholder lines in Kenya and the Ivory Coast (Grigg, 1993: 145). Overall: In Latin America, arable land increased by 94 million hectares or 109 percent; in Asia by 103 million hectares or 30 percent, [while in Africa] it seems likely that there was an actual decline.. . . In