Crisis in the Horn

By Prof Michel Chossudovsky, Global Research
May 24, 2014

Based on research conducted in the 1990s, this article was first published by The Ecologist in September 2000. It was subsequently incorporated into the Second edition of The Globalization of Poverty and the New World Order,

Global Research, Montreal, 2003.

The research focussed on how GMO seeds were used as of the mid-1990s to destabilize the agricultural cycle in Ethiopia. This diabolical “free market” agenda was a dress rehearsal for a agri-bio-tech conglomerates’ assault led by Monsanto on peasant economies in all major regions of the World.

Michel Chossudovsky, May 23, 2014

The “economic therapy” imposed under IMF-World Bank jurisdiction is in large part responsible for triggering famine and social devastation in Ethiopia and the rest of sub-Saharan Africa, wreaking the peasant economy and impoverishing millions of people.

With the complicity of branches of the US government, it has also opened the door for the appropriation of traditional seeds and landraces by US biotech corporations, which behind the scenes have been peddling the adoption of their own genetically modified seeds under the disguise of emergency aid and famine relief.

Moreover, under WTO rules, the agri-biotech conglomerates can manipulate market forces to their advantage as well as exact royalties from farmers. The WTO provides legitimacy to the food giants to dismantle State programmes including emergency grain stocks, seed banks, extension services and agricultural credit, etc.), plunder peasant economies and trigger the outbreak of periodic famines.

Crisis in the Horn

More than 8 million people in Ethiopia – representing 15% of the country’s population – had been locked into “famine zones”. Urban wages have collapsed and unemployed seasonal farm workers and landless peasants have been driven into abysmal poverty. The international relief agencies concur without further examination that climatic factors are the sole and inevitable cause of crop failure and the ensuing humanitarian disaster. What the media tabloids fails to disclose is that – despite the drought and the border war with Eritrea – several million people in the most prosperous agricultural regions have also been driven into starvation. Their predicament is not the consequence of grain shortages but of “free markets” and “bitter economic medicine” imposed under the IMF-World Bank sponsored Structural Adjustment Programme (SAP).

Ethiopia produces more than 90% of its consumption needs. Yet at the height of the crisis, the nationwide food deficit for 2000 was estimated by the Food and Agriculture Organization (FAO) at 764,000 metric tons of grain representing a shortfall of 13 kilos per person per annum.1 In Amhara, grain production (1999-2000) was twenty percent in excess of consumption needs. Yet 2.8 million people in Amhara (representing 17% of the region’s population) became locked into famine zones and are “at risk” according to the FAO. 2 Whereas Amhara’s grain surpluses were in excess of 500,000 tons (1999-2000), its “relief food needs” had been tagged by the international community at close to 300,000 tons.3 A similar pattern prevailed in Oromiya, the country’s most populated state where 1.6 million people were classified “at risk”, despite the availability of more than 600,000 metric tons of surplus grain.4 In both these regions, which include more than 25% of the country’s population, scarcity of food was clearly not the cause of hunger, poverty and social destitution. Yet no explanations are given by the panoply of international relief agencies and agricultural research institutes.

The Promise of the “Free Market”

In Ethiopia, a transitional government came into power in 1991 in the wake of a protracted and destructive civil war. After the pro-Soviet Dergue regime of Colonel Mengistu Haile Mariam was unseated, a multi-donor financed Emergency Recovery and Reconstruction Project (ERRP) was hastily put in place to deal with an external debt of close to 9 billion dollars that had accumulated during the Mengistu government. Ethiopia’s outstanding debts with the Paris Club of official creditors were rescheduled in exchange for far-reaching macro-economic reforms. Upheld by US foreign policy, the usual doses of bitter IMF economic medicine were prescribed. Caught in the straightjacket of debt and structural adjustment, the new Transitional Government of Ethiopia (TGE), led by the Ethiopian People’s Revolutionary Democratic Front (EPRDF) – largely formed from the Tigrean People’s Liberation Front (PLF) – had committed itself to far-reaching “free market reforms”, despite its leaders’ Marxist leanings. Washington soon tagged Ethiopia alongside Uganda as Africa’s post Cold War free market showpiece.

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