Oil 1 Peak Oil 21


Developing Countries – Poverty Advantage



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Developing Countries – Poverty Advantage


A. Rising oil prices lock developing countries into generational poverty and malnutrition
LA Times, 7-18-08

http://www.latimes.com/news/printedition/asection/la-fg-poverty18-2008jul18,0,7874890,print.story, Oil prices threaten Latin America's economic gains


In an attempt to fight inflation, central banks in Chile, Brazil and Mexico have raised interest rates. But that's threatening to slow the solid growth that has produced jobs and wealth. Public frustration is growing. In Brazil, police in the city of Porto Alegre recently fired rubber bullets and tear gas into a crowd that was trying to storm a supermarket to protest high food prices. Transport workers paralyzed Nicaragua in May, demanding affordable diesel. Most of Nicaragua's electricity comes from plants that burn imported oil. Regulators have raised rates five times since November. Fearful of social unrest, Latin American leaders are now scrambling to blunt the impact of the price shocks. Mexico, for example, has eliminated duties on imported grain and is increasing cash payments to families enrolled in the nation's largest anti-poverty program. It's also keeping a lid on the price of gas, which is about $2.68 a gallon in most of the country. That subsidy is projected to cost the treasury more than $20 billion this year, a figure officials say is unsustainable if crude prices continue to rise. Central American leaders have huddled in summits, vowing to decrease their dependence on imported grain and livestock. It won't be quick or easy. To revitalize their farm sectors, these governments will need to invest billions in roads and other infrastructure. Farmers need loans for equipment, fuel and supplies such as fertilizer, which are much costlier than they were a few years ago. Fallout from the crisis could last generations. Even short periods of malnutrition can permanently stunt the brain development of children. Kids pulled out of school to help with the family finances often remain permanently behind their peers. Neither Maria nor Jose Lopez finished high school. They can't say when they'll send their daughters back.

Developing Countries – Poverty Advantage


B. Poverty is equivalent to an ongoing nuclear war that kills millions every year
Mumia Abu-Jamal, journalist, 9-9-98

http://www.flashpoints.net/mQuietDeadlyViolence.html, A Quiet and Deadly Violence, Flashpoints


We live, equally immersed, and to a deeper degree, in a nation that condones and ignores wide-ranging "structural' violence, of a kind that destroys human life with a breathtaking ruthlessness. Former Massachusetts prison official and writer, Dr. James Gilligan observes; By "structural violence" I mean the increased rates of death and disability suffered by those who occupy the bottom rungs of society, as contrasted by those who are above them. Those excess deaths (or at least a demonstrably large proportion of them) are a function of the class structure; and that structure is itself a product of society's collective human choices, concerning how to distribute the collective wealth of the society. These are not acts of God. I am contrasting "structural" with "behavioral violence" by which I mean the non-natural deaths and injuries that are caused by specific behavioral actions of individuals against individuals, such as the deaths we attribute to homicide, suicide, soldiers in warfare, capital punishment, and so on. --(Gilligan, J., MD, Violence: Reflections On a National Epidemic (New York: Vintage, 1996), 192.) This form of violence, not covered by any of the majoritarian, corporate, ruling-class protected media, is invisible to us and because of its invisibility, all the more insidious. How dangerous is it--really? Gilligan notes:

[E]very fifteen years, on the average, as many people die because of relative poverty as would be killed in a nuclear war that caused 232 million deaths; and every single year, two to three times as many people die from poverty throughout the world as were killed by the Nazi genocide of the Jews over a six-year period. This is, in effect, the equivalent of an ongoing, unending, in fact accelerating, thermonuclear war, or genocide on the weak and poor every year of every decade, throughout the world. [Gilligan, p. 196] Worse still, in a thoroughly capitalist society, much of that violence became internalized, turned back on the Self, because, in a society based on the priority of wealth, those who own nothing are taught to loathe themselves, as if something is inherently wrong with themselves, instead of the social order that promotes this self-loathing. This intense self-hatred was often manifested in familial violence as when the husband beats the wife, the wife smacks the son, and the kids fight each other. This vicious, circular, and invisible violence, unacknowledged by the corporate media, uncriticized in substandard educational systems, and un-understood by the very folks who suffer in its grips, feeds on the spectacular and more common forms of violence that the system makes damn sure -that we can recognize and must react to it. This fatal and systematic violence may be called The War on the Poor


Developing Countries – Poverty Extension


High oil prices create high inflation and recessions – through decreased domestic spending and business cuts
Dean Calbreath, financial columnist, 7-16-08

http://www.signonsandiego.com/news/metro/20080716-9999-lz1n16economy.html, '70s flashback would be bad trip for economy, San Diego Union-Tribune


“What we're going to get is a combination of extremely high inflation and severe recessions,” said Stephen Leeb, head of Leeb Capital Management in New York. “It will be very much like the 1970s, except on steroids.” For consumers, it could mean less money to spend and an eroded standard of living. Businesses, facing a dismal environment for sales, could be forced to lay off workers and cut costs. For the U.S. economy, high oil prices could result in trillions of dollars being transferred abroad. The center of the economic world could shift away from the United States toward oil-producing nations – at least as long as they can keep producing a steady stream of petroleum. Robert Hirsch, chief energy analyst for Management Information Services in Washington, D.C., estimates that as oil continues to rise over the next couple of years, the cost could exceed the inflation-adjusted $4 trillion total price tag of all previous oil disruptions since 1974.


High oil prices are undermining small nations’ economies, increasing poverty
Tom Whipple, fmr CIA energy analyst and editor at Falls Church News, 7-16-08

http://www.fcnp.com/index.php?option=com_content&view=article&id=3301:the-peak-oil-crisis-the-blackouts-spread&catid=17:national-commentary&Itemid=79, The Peak Oil Crisis: The Blackouts Spread, Falls Church News-Press


Of the 266 distinct nations or entities on the world today, nearly 100 are now reporting continuing energy shortages, mostly in the form of inadequate electricity supply, but in a growing number of cases, shortages of liquid fuels and natural gas. The actual number of countries affected is probably well over 100 but there are dozens of isolated island-states scattered around the world that are rarely heard from and are almost certainly suffering in silence while waiting for the next oil tanker to come in. The majority of these energy-short states are small, poor and play only a minor role in world trade. While we should feel sorry for the plight of their inhabitants who are, or shortly will be, enduring severe hardships from greatly reduced supplies of electricity, water, food and use of motor transport, the impact of their problems on the better-off OECD world is likely to be minimal for a while.

Developing countries – Poverty Extension


Oil-driven food price increases will plunge countries into poverty – reversing decades of progress
Simon Roughneen, senior correspondent for ISN Security Watch, 4-14-08

http://www.isn.ethz.ch/news/sw/details.cfm?id=18857, The global food fight


Growing demand for more food - in terms of quality and quantity - as well as general rising living standards in India, Brazil, Russia and China, where vast new middle classes are emerging, has part-prompted the price increases. In both countries, oil demands are up, contributing to the US$100+ per barrel costs, as more people can afford to own a car, which in turn fuels the food price ramp-up by increasing transport costs and making fertilizer more expensive. Thomas Friedman's flat-world thesis seems relevant here - with consumers in emerging economies seeking to match western affluence. This means more cars, more meat and more high calorie, high protein foods - all of which puts pressure on oil supplies and prices, not least as more meat equals more fuel consumption for cooking, as well as increased demand for the grain feed for livestock and chickens. Such changes are not irreversible, however. Dominique Strauss-Kahn, the chief of the International Monetary Fund (IMF), got no demurral from the 24 finance ministers on his steering committee when he warned on 12 April that ongoing price inflation could undermine much of the recent pro-poor development gains in many countries. This echoed fears outlined in a World Bank policy paper Rising Food Prices - Policy Options and World Bank Response - released on 9 April. Group President Robert B Zoellick was quoted as saying: "In some countries, hard-won gains in overcoming poverty may now be reversed."



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