Atrazine Ban Would Not Ruin the Corn Belt

The U.S. Environmental Protection Agency is re-evaluating the regulation of atrazine, a powerful weed killer that is banned in Europe, but widely used by U.S. corn growers. Based on his 2007 study on the subject, Triple Crisis blogger Frank Ackerman’s recent op-ed article in the Des Moines Register questions the economic benefit of atrazine use.

“My research on the economics of atrazine shows that its benefits are greatly exaggerated. Corn yields and farm incomes would barely be affected by switching from atrazine to the next-best alternatives.

“Why is atrazine controversial? Everyone agrees that it kills weeds. But there are two rival stories about its health risks. Industry-sponsored research and agribusiness lobbies say that atrazine is completely safe and has been used for decades without harm to humans. Independent university researchers and peer-reviewed scientific literature say that it is a powerful endocrine disrupter that makes male frogs into hermaphrodites at very low concentrations and causes neural damages and cancer in laboratory animals.”

Read the full Des Moines Register column.

See Ackerman’s original study on atrazine.

A New Multidimensional Poverty Index

John Hammock, Guest Blogger

The Oxford Poverty and Human Development Initiative (OPHI) has developed a new international measure of poverty – the Multidimensional Poverty Index or MPI – for the 20th Anniversary edition of the United Nations Development Program’s flagship Human Development Report. The new innovative index goes beyond a traditional focus on income to reflect the multiple deprivations that a poor person faces with respect to education, health and living standards. The new index has generated some controversy as to its merits.

Poverty is traditionally measured by income.  And yet the poor are poor not just because of low income. They are poor because they have no access to health care, to education, to good nutrition.  But income has been used for some time now as a proxy for poverty. And yet, it is not a sufficient proxy.  OPHI has now developed a simple, robust, user-friendly multidimensional approach to measuring poverty.

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Gender and Green Governance

Bina Agarwal, Guest Blogger

Environmental governance as a field is increasingly engaging economists, especially those interested in institutional analysis. The 2009 Nobel Prize in Economics to Elinor Ostrom for her pioneering work on governing the commons is one indicator of this engagement. However, neither economists, nor typically political scientists studying environmental collective action and governance, have paid much attention to gender. At the same time, research in other disciplines which brings a gender perspective to these issues has focused mainly on women’s relative absence from governance institutions and the factors underlying that absence.

But suppose we turned this focus on its head to ask: what difference would women’s presence make in these institutions? How would that affect institutional functioning?

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Letter from Flint, Michigan

James K. Boyce

The 1936-1937 sit-down strike forced General Motors to recognize the United Auto Workers as the workers’ union.

It began on December 30, 1936, at Fisher Body No. 1 in Flint, Michigan: workers occupied General Motors factories, launching one of the key struggles in U.S. labor history. A Women’s Emergency Brigade brought them food; when the police tried to drive out the strikers with tear gas, the women broke the windows to give them fresh air. After 44 bitter winter days, the sit-down strike forced GM to recognize their union, the United Auto Workers.

It was no accident that Flint was the scene of this historic battle. One hundred years ago, when the city boasted the largest factory in the world – a Buick plant – the people of Flint elected a socialist mayor. But GM founding partner Charles S. Mott won two years later, campaigning on a platform whose first point was “Only men who are successful at business should run city affairs.”

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U.S. Financial Regulations: Not perfect, but maybe a beginning

Gerhard Schick

Regarding the Dodd-Frank Wall Street Reform and Consumer Protection Act, one can debate whether the “glass is half empty or half full,” but the verdict may not be known for years.  If the Act is the beginning of the end of years of laissez-faire and deregulation, then ultimately the verdict will be positive.  In the 1930s, the New Deal legislation was not accomplished through one law, but through a series of laws and regulatory measures.

I fully understand Jeff Madrick’s critique. The Act’s approach is far from being perfect, as it focuses more on plugging holes than on creating a new paradigm for financial markets. But, it has several redeeming features: reducing proprietary trading by banks; shifting an important part of derivative trading to central counterparties; providing consumer protections; and requiring reporting by extractive industries in ways that can significantly advance transparency.

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Fighting Corporate Concentration in Agriculture

Timothy A. Wise

Today, the U.S. Departments of Justice and Agriculture convene their fourth public hearing on corporate concentration in U.S. agricultural markets, a process I described previously on this blog. Farmers and ranchers are expected to crowd Fort Collins, Colorado to air their long-standing grievances about the disproportionate power of multinational meat packers. To contribute to this unprecedented public policy process, research assistant Sarah E. Trist and I surveyed the evidence of buyer power in U.S. hog markets, which have undergone rapid structural transformation in the last 25 years.

We found that among the limited studies of the issue, several that had been widely interpreted to suggest that buyer power was not a problem in fact presented evidence of just the opposite. Two related points were particularly striking. First is the pattern of approving mergers on the basis of “efficiency gains” that offset market power losses to consumers, when some of those apparent gains can actually come from packers using their buyer power to force down producer prices. The second is the way that buyer power in food retail can intensify the exercise of buyer power by packers, with farmers at the bottom of the food chain losing out from this “compounded” market power.

You can read the executive summary and download our paper, “Buyer Power in U.S. Hog Markets,” or read our public comments to DOJ/USDA, which include the paper.

Speculation and the New Commodity Price Crisis: Separating the wheat from the chaff

Steve Suppan, Guest Blogger

Wheat prices had been climbing prior to the August 5 announcement of a Russian wheat export ban. Kansas Board of Trade wheat futures contracts had gone from $4.92 a bushel on June 10 to spike at $7.95 a bushel on August 5, prompting a reporter to ask, “How could a Russian drought in the age of instant information escape the world’s notice until the country’s wheat crop was devastated?” This excellent question does not yet have a clear answer.

The wheat price crisis has led the press and even policymakers to focus almost exclusively on the traditional supply-demand fundamentals that ostensibly set prices. It’s as if the press were relieved to point to that old standby, weather, as the culprit for a 50 percent increase in wheat futures prices in a few weeks. For a change from the last three years, excessive speculation in commodities by financial institutions would not be accused of driving price volatility. Furthermore, according to the U.S. Department of Agriculture, unlike 2007-2008, global grain stocks were high enough to supply countries that could afford them. Maybe the specter of speculators increasing hunger might be eluded.

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Remittances, Migration and Other Panaceas: The end of outward-looking development strategies?

Ilene Grabel

In a 1965 essay, the great development economist Albert Hirschman bemoaned the tendency of those in his profession to look for the next panacea. Unfortunately, various panaceas have come in and out of fashion since Hirschman wrote.

During three decades of neo-liberalism, development economists and policymakers have celebrated three inter-related strategies:  (1) free markets, (2) private ownership, and (3) private international capital flows. The latter refers to several types of flows—loans by foreign banks, foreign direct investment (i.e., the purchase of more than 10% of the assets of a foreign corporation), portfolio investment (i.e., the purchase of foreign financial assets, such as stocks or bonds), and worker remittances (i.e., the funds that migrant workers send home generally to their families, but sometimes also send collectively through “home town associations” to fund infrastructure projects in their towns of origin). Policy in the neo-liberal era sought to maximize all four of these financial flows.

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How to Build a Better Climate Policy

Frank Ackerman and Elizabeth A. Stanton

Congress has – once again – considered a new climate and energy bill, and then blinked, instead of passing it. As in the movie Groundhog Day, they seem condemned to keep starting, over and over, until they get it right. It’s a good thing there’s not much at stake, aside from the fate of the earth’s climate, the disastrous dependence on oil, and the costs to the American taxpayers to clean up this mess.

In a recent study, released by Economists for Equity and the Environment (E3 Network), we analyzed the economic impacts of climate policies on households throughout the country. We found there are two basic principles for designing a fair and effective climate policy. First, we need to put a price on carbon dioxide emissions, to send a clear market signal that these emissions need to be reduced. The higher the price, the faster the reduction in emissions – regardless of how wisely, or not, the carbon revenues are used.

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