The Banana Trade: A Case Study

https://www.youtube.com/watch?v=HnbjSaom1AY http://www.theguardian.com/sustainable-business/fairtrade-partner-zone/video/banana-wars-low-prices-farmers-squeeze http://www.theguardian.com/sustainable-business/fairtrade-partner-zone/video/banana-wars-low-prices-farmers-squeeze

Related Issue #1 – To What Extent Should Globalization Shape Identity? Vocabulary Builder Economies of Scale – savings that are achieved by producing, using, and buying things in large quantities. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Identity and Economic Dimensions of Globalization Bananas are the cheapest fruit sold in Canada. Most bananas sold in Canada are grown on huge plantations owned by transnational corporations. Chiquita, Dole, and Del Monte (American transnationals) largely control the banana production in Central and South America. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? Transnational corporations use economies of scale in the banana trade and also reduce costs by controlling ships, containers and warehouses in the banana distribution cycle (vertical integration) Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? Wages are kept low by growing in countries with cheaper labour Ecuadorian banana workers earn about $6.40 Cdn a day. Alberta worker earns $81.60 during that same day. Prices are also low because yields are high as a result of heavy fertilizer and pesticide use, thus the amount grown often exceeds demand. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Identity and some Political Dimensions of Globalization On smaller banana farms in some Caribbean countries, banana production cannot compete with the large transnational corporations so prices of bananas from countries such as Jamaica and St. Lucia are higher. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Identity and some Political Dimensions of Globalization The Banana Wars began when European governments started giving preferential treatment (no tariffs) on bananas coming in from former colonies. The transnational companies protested saying this was unfair. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? Chiquita convinced the American government to take their case to the WTO – World Trade Organization. The WTO is a body of representatives from 150 countries that govern how its members trade with one another. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? In 1997 the WTO ruled that the European countries must change some of the trade rules that helped banana farmers in their former colonies. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? Not satisfied with the changes made after this ruling – the American government started imposing tariffs on many European goods that came into the USA. The dispute continues. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Identity and some Environmental Dimensions of Globalization In 1992 the United Nations Conference on Environment and Development, also called the Earth Summit, was held to discuss how governments and organizations could encourage economic development while protecting the environment. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Identity and some Environmental Dimensions of Globalization One area of focus was large scale agriculture, or agribusiness, such as the transnational control of banana production. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? Concerns brought to the forefront included Loss of forests that lead to soil erosion and flooding. (60% of forests in Costa Rica have been cleared) The destruction of natural habitats leading to a reduction in biodiversity, the variety of plant and animal species. Reduction in biodiversity leads to risk of crop destruction by pests and disease. Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? Heavy use of fertilizers, herbicides, and pesticides are hazardous to the health of the workers, human health in general, and runs off into our water systems harming other wildlife. Indigenous peoples are often displaced – forced off their land losing their traditional way of life Environmental destruction of the land due to the heavy use of chemicals has led to a loss in ability to feed themselves/earn a living Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? How do some forces of globalization present challenges to identity?   Many believe globalization will help individuals and collectives expand their identity; whereas, others feel it will lead to cultural homogenization which erases the differences among people. Acculturation: refers to the cultural changes that occur when two cultures accommodate, or adapt to, each other’s worldview; this accommodation involves accepting and creating space for one another and may affect the customs, traditions, technologies, values, beliefs and languages of both cultures. Assimilation: both acculturation and accommodation may lead to the culture of a minority group being absorbed by another culture as its members take on the identity of the other culture Related Issue #1 – To What Extent Should Globalization Shape Identity?

Related Issue #1 – To What Extent Should Globalization Shape Identity? How do some Forces of Globalization Provide Opportunities to Affirm and Promote Identity? Forces of globalization = double-edged sword as they can lead to assimilation and the homogenization of cultures, but they can also provide minority groups with opportunities to affirm and promote their cultural identity. Cultural Revitalization- the process of affirming and promoting individual and collective identity Métis Nation of Alberta Cultural revitalization in Bolivia Related Issue #1 – To What Extent Should Globalization Shape Identity?