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Small-Scale Farmers Under Socialist Governments: Venezuela and the ALBA People’S Trade Agreement

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Small-Scale Farmers Under Socialist Governments: Venezuela and the ALBA People’S Trade Agreement Small-scale farmers under socialist governments: Venezuela and the ALBA People’s Trade Agreement Lucia Michelutti Knowledge Programme Small Producer Agency in the Globalised Market Small-scale farmers under socialist governments: Venezuela and the ALBA People’s Trade Agreement Lucia Michelutti 2012 This paper is a product of the Knowledge Programme Small Producer Agency in the Globalised Market. The Knowledge Programme aims to map, elicit and integrate knowledge on the dilemmas confronting small-scale producers in global, regional and national markets. The programme works with different actors to bring new voices, concepts and insights into the global debate. It thereby seeks to support the development community, including policy makers, producer organisations and businesses, in their search for better informed policies and practices. The programme is led by the Humanist Institute for Development Cooperation (Hivos) and the International Institute for Environment and Development (IIED), and integrates a global learning network, convened by Mainumby Ñacurutú in Bolivia. First published in 2012 by the Knowledge Programme Small Producer Agency in the Globalised Market, a joint initiative of: International Institute for Environment and Development (IIED) Hivos 80-86 Gray’s Inn Road, London, WC1X 8NH Raamweg 16 Tel: +44 (0)20 3463 7399 PO Box 85565, NL- 2508 CG Fax: +44 (0)20 3514 9055 The Hague, The Netherlands [email protected] [email protected] www.iied.org www.hivos.net Copyright © International Institute for Environment and Development/HIVOS Citation: Michelutti, L (2012) Small-scale farmers under socialist governments: Venezuela and the ALBA People’s Trade Agreement, IIED/HIVOS, London/The Hague. Design: cover – Andy Wilkinson; text – Eileen Higgins Printed by Park Communications, UK on 100% recycled paper using vegetable oil based ink. ISBN: 978-1-84369-870-8 A catalogue record for this paper is available from the British library. The publication can also be downloaded from: http://www.hivos.net/Hivos-Knowledge-Programme/ Publications or http://pubs.iied.org/ This work is licensed under the Creative Commons Attribution-Share Alike Works 3.0 Netherlands Licence. To view a copy of this licence, visit http://creativecommons.org/licences/by-sa/3.0/nl/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Contents Acknowledgements About the author Acronyms and abbreviations 1 Introduction 1 1.1 Regional geopolitics and the rise of socialism in Latin America 1 1.2 Development of the ALBA People’s Trade Agreement 1 1.3 About this paper 4 2 Food and agriculture policy instruments within ALBA-PTA in Venezuela, Nicaragua and Bolivia 5 3 ‘Planning socialism, harvesting sovereignty’: agricultural transformations in contemporary 9 Venezuela 4 Case studies on the roots of agency: agricultural cooperatives in Venezuela 11 4.1 Cocoa producers in Chuao, Aragua State 11 4.2 Producers of fresh fruit and vegetables in Lara State 16 5 Conclusions 19 References 22 Boxes 1.1 ALBA’s guiding principles: an alternative to competition 3 3.1 Food sovereignty and pro-small-farmer institutional arrangements in Venezuela 9 3.2 Measures to implement food sovereignty and food security in Venezuela 9 Acknowledgements I wish to thank friends and informants in the village of Chuao in Aragua State and at CECOSESOLA (the Central Cooperative for Social Services of Lara) in Barquisimeto, without whose support and patient cooperation this work would not have been possible. I also thank Thomas Muhr and Falguni Guharay for their insights on ALBA and its impact on the everyday life of farmers in Nicaragua, and Diego Munoz and Luis Galleguillos for their insights on ALBA and pro-farmer policies in Bolivia. I am especially grateful to Ethel del Pozo-Vergnes and Bill Vorley for valuable comments and criticisms on previous drafts. About the author Lucia Michelutti is a Lecturer at the Department of Anthropology at University College London (UCL) and a Research Associate at the School of Interdisciplinary Area Studies (SIAS), University of Oxford. Her major research interest is the study of popular politics and religion in South Asia (north India) and Latin America (Venezuela). She is author of The Vernacularisation of Democracy (Routledge, 2008) and of articles on caste/race, charisma and leadership, ‘post-secular’ political experimentations, alternative socialist models of development and revolutionary politics. Contact: [email protected] Acronyms and abbreviations ALBA–PTA Bolivarian Alliance for Our Americas – People’s Trade Agreement ALBANISIA ALBA de Nicaragua, SA BAV Agricultural Bank of Venezuela BF/BsF Bolivar/es Fuerte/s (at time of going to press 1BF equivalent to USD 0.25) CC communal council CECOSESOLA Central Cooperative for Social Services of Lara FAO Food and Agriculture Organization (UN) FTAA Free Trade Area of the Americas GNE grandnational enterprise GNI grandnational institute GNP grandnational project IDB Inter-American Development Bank MACNDE Ministry of Agriculture and Livestock (Venezuela) Minep Ministry of Popular Economy (Venezuela) NED Centre for Endogenous Development Introduction 1.1 Regional geopolitics and the rise of forward ‘socialism’. They have implemented anti-US socialism in Latin America policies with the aim of opposing the FTAA (Free Trade Area of the Americas) and are simultaneously In recent years, socialist politics have re-emerged challenging (at least rhetorically) the whole rationale as a force in Latin America. The geopolitics of the of capitalism and particularly globalisation, which is region have been dramatically changing with the considered its most recent manifestation. declining influence of the United States in what was considered its traditional backyard (Economist, 2011). This phase began in 1998, when Hugo 1.2 Development of the ALBA People’s Chavez, was elected president of Venezuela. Trade Agreement Chavez has been capitalising on the political wave It is in this context that we should examine the of anger at failed neoliberal economic policies, and development and viability of the Bolivarian Alliance the ideological space that the circumstances have for Our Americas People’s Trade Agreement produced, to set in motion the creation of a novel (ALBA-PTA), established between Venezuela realignment of power relationships in the region. and Cuba in 2004 and now incorporating Bolivia, Nicaragua, Ecuador, Dominica, Antigua and The Venezuelan President was followed by Ricardo Barbuda, St Kitts and Nevis, Saint Vincent and Lagos in Chile (2000), Luiz Inacio Lula de Silva in Grenadines. Thomas Muhr (2011a) argues that Brazil (2002), Nestor Kirchner in Argentina (2003), this is the only agreement in Latin America and Tabare Vazquez in Uruguay (2004) and Evo Morales the Caribbean that seeks to integrate the entire in Bolivia (2005) – the first indigenous president region. Importantly, in opposition to the FTAA in that country’s history. In 2006, ex–revolutionary (which is led by the USA), visions of revolutionary leader Daniel Ortega returned to power in Nicaragua, socialism are being re-invented as an ‘alternative’ while independent left-wing economist Rafael to a world order deemed to be dominated by a Correa won the Ecuadorian presidency. By decade’s neoliberal hegemony. One of the most striking end, leftist candidates had also won in Paraguay characteristics of these developments is their (Fernando Lugo) and El Salvador (Mauricio Funes abidingly experimental character. ALBA nations of the Farabundo Marti National Liberation Front). confront varied social, political and economic Leftist presidents or parties were subsequently circumstances, and socialist politics is taking on re-elected in Venezuela (2000, 2006, 2011), Chile a different character in each of them. What unites (2006, 2011), Brazil (2006, 2010), Argentina (2007), these nations however is a self-conscious project Ecuador (2009), Bolivia (2009), Uruguay (2009) and of transnational political experimentation, which Peru (2011) (Levitsky and Roberts, 2011). aspires to refashion political ideologies, policies and new forms of political participation to create This unprecedented trend has been accompanied ‘socialism for the 21st century’, as it is often by new forms of policy experimentation; it has been presented in official political discourse. argued that ‘the left turn’ is changing not only who governs in Latin America but also how they govern In terms of food and agriculture, the socialism of (Levitsky and Roberts, 2011: 14). Contemporary the 21st century means returning the means of left-wing governments in Latin America are often production to the people through agrarian reform and categorised into two types: moderately left-wing cooperatively run farms and food-processing factories, (for example Argentina, Chile, Brazil and Uruguay) as well as treating food as a basic human right rather and radically left-wing (Venezuela and Bolivia and than a commodity for profit.1 For the supporters of this more recently Nicaragua and Ecuador). The latter anti-capitalist position, the principle of food sovereignty are putting forward the notion of participatory does not oppose trade but rather promotes the democracy. In economic terms, they have been formulation of trade policies and practices as long as opposing neoliberalism and explicitly pushing they work in favour of small-scale farmers.2 1. The socialism of the twenty-first century is a concept first used by Professor Heinz Dieterich Steffan, a German political
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