The Ecologist Film Unit has produced an excellent 8-minute video on how financial speculation on corn (maize) has led to a dramatic rise in the price of corn tortillas, with potentially disastrous effects for the health and well-being of the many of Mexico’s poorest. Reporter Tom Levitt’s video, accompanied by text, presents a compelling case, one which would be an excellent starting-point for class discussions.
Two short quotes set the scene:
“For many Mexicans, particularly the estimated 40 million living on less than $5 a day (£3), tortillas account for almost half of their average daily calorie intake. As a whole, the country consumes 23 times more maize than rice.”
“In 2000 there was $6 billion invested in commodities, by 2011 it was $340 billion, of which $126 billion, according to data from Barclays Capital, is reported to be invested in food. The vast majority of this new investment has been by speculators with no interest in the agricultural sector or in actually taking delivery of the commodity.”
The result? Higher prices for corn, greater unpredictability in prices, and adverse changes to the diet of tens of thousands, as corn becomes more expensive than meager household budgets permit.
The video is a powerful indictment of the harm being done to ordinary people in many parts of the developing world by rich-world market speculators and investment banks. Watch it now, or read the full article: