<< Back to Cyberbooks

Part VI

 

 

 

 

 

SYMPOSIUM

THE SECOND CONTRADICTION

OF CAPITALISM

 

 

 

Contributions to the debate on the thesis of the "second

contradiction of capitalism" by John Bellamy Foster, Samir Amin,

Victor Toledo, Kamal Nayan Kabra, Michael Lebowitz, Martin

O'Connor, Enrique Leff, Sunil Ray, Andriana Vlachou, Albert

Recio, Enzo Mingione, and Martin Spence appeared in the last four

issues of CNS.

 

The Loss of Agricultural Biodiversity:

An Example of the "Second Contradiction"

By Joan Martinez Alier

The conference in Rio de Janeiro had as one of the main

themes the conservation of biological diversity. In this note, I

shall focus on agricultural biodiversity, and I shall use this as

an example to test Jim O'Connor's thesis on the "second

contradiction" (which readers of CNS already know, and therefore

I shall not summarize again). This note is then an attempt to

show that Jim O'Connor's thesis is fruitful in order to

understand a situation which he himself has not commented upon,

and has not listed in the examples he has given on the "second

contradiction."

Biodiversity was one star issue at the Rio Conference. I

shall focus on agricultural biodiversity which raises

distributional conflicts which are barely understood even by the

social actors themselves since it is only now that a widespread

awareness of the value of agricultural biodiversity is arising in

poor countries. Some of these countries occupy the areas of

Vavilov's original "centres of biodiversity" (e.g., maize in

Mexico and Central America, potatoes in the Andes, cassava in

 

 

1

 

 

 

 

 

Brazil-Paraguay...). Moreover, in such countries there are still

poor farmers, experts in traditional plant breeding, practising

"clean technology," low-input agriculture based on hundreds of

"landraces" (which Pat Mooney has proposed to call

"folkseeds").[1]

The threat to such agricultural biodiversity comes mainly

from the market advantage to be gained by switching over to

modern agriculture and the High Response Varieties. Questions

arise as to the value that agricultural biodiversity has now and

will have in the future (as assets of "cultivated natural

capital" which cannot be engineered), whether such value which

the market leaves aside ought to have a chrematistic translation,

and who should collect such monetary revenues. Also, what should

be transacted? The right to use such traditionally improved

varieties without excluding other users, or the acquisition of

their property?

There is also the issue of the complementarity between

agricultural biodiversity and the biodiversity of wildlife, which

is the main platform of bodies such as the WWF, and far more

emphasized than agricultural and agroforestal biodiversity in the

IUCN's conservation strategy.[2] Agricultural genetic resources

as "cultivated natural capital" are not a substitute but a

complement to the human-made capital equipment used in modern

agriculture; in its turn, such "cultivated natural capital" needs

the complement of "natural capital," i.e., the wild and weedy

relatives of the same species of cultivated plants.[3]

_________________________

[1] In D. Cooper, R. Vellve and Henk Hobbelink, eds., Growing

Diversity. Genetic Resources and Local Food Security (London:

Intermediate Technology Publications), 1992. See also Daniel

Querol, Recursos geneticos, nuestro tesoro olvidado (Lima:

Industrial Grafica), 1987.

[2] Jeffrey A. Mc Neely, Kenton R. Miller, Walter V. Reid,

Russell A. Mittermeier, and Timothy B. Warner, Conserving the

World's Biological Diversity (World Bank: Gland, Switzerland and

Washington, D.C., 1990).

[3] Herman Daly's classification includes natural capital,

human-made capital, and also, as a special case, cultivated

natural capital. He has discussed the question (which was

raised already by Frederick Soddy, of Oxford, very explicitly) of

whether such categories of capital are substitutes or

 

 

2

 

 

 

 

 

The ethnobotanical diversity of the poor has been recently

emphasized by different authors, inside a wider framework of

agroecology based on indigenous, peasant knowledge which

continuously evolves.[4] Agricultural biodiversity cannot be

understood unless we also understand the whole human-ecological

complex of each society which has managed to create, preserve,

and further create such wealth of genetic resources. They are

valuable, but such value is not easily translatable into money

terms. The crucial question is whether genetic resources in

general (those from the wilderness, those from traditionally

_________________________

complements. Ecological economists have insisted that natural

resources should be called natural capital, for two reasons.

First, the change in name points to the lack of amortization

provisions for natural resources. Second, the change in name

points to the problematic nature of the substitution of capital

for natural resources in orthodox production functions. However,

the change in name also might mean that resources which were not

produced as commodities and which were not commodities

(traditional agricultural genetic resources, or the Earth's C02

cleaning facilities) should now be treated as capital, i.e.,

commodities.

[4] Paul Richards, Indigenous Agricultural Revolutions: Ecology

and Food Production in West Africa, (London: Hutchinson, 1984);

Ramachandra Guha and Mahdav Gadgil, This Fissured Land: An

Ecological History of India, (Delhi: Oxford University Press,

1992); Victor Toledo, La sociedad rural, los campesinos y la

cuestion ecologica," in Jorge Zepeda, ed., Las Sociedades Rurales

Hoy, (Conacyt: El Colegio de Michoacan, 1988); also in Ecologia

Polotica, 1, 1991; V. Toledo, "The Ecological Rationality of

Peasant Production," in Miguel Altieri and Susanna Hecht, eds.,

Agroecology and Small Farm Development, (Boca Raton, Florida: CRC

Press, 1989; Daryl Posey, "Indigenous management of tropical

forest ecosystems: the case of the Kayapo Indians of the

Brazilian Amazon," Agroforestry Systems, 3 (2), 1985, pp. 139-

158; Ph Descola, La selva, cultura, simbolismo y praxis en la

ecologia de los achuar (Abya Yala, Quito, 1988); Dianne

Rocheleau, "Gender, Ecology and the Science of Survival: Stories

and Lessons from Kenya," Agriculture and Human Values, winter-

spring, 1991, pp. 156-165.

 

 

 

3

 

 

 

 

 

improved varieties, those from modern varieties, and those

genetically engineered) should be commercialized or should remain

the "patrimony of humankind." Genetic resources produced by

traditional plant breeding and collected in the fields up to now

have not been paid for, while firms selling modern improved seeds

insist on payment for them, and the products of genetic

engineering will be not only sold, but monopolized through a

patent system.

 

The "Mother of all Potatoes"

This is how an Aymara peasant near Lake Titicaca[5] referred

to the wild seed which he crosses on a regular basis with his own

domesticated varieties. This is more than conservation in situ,

it is co-evolution in situ. The wild and weedy relatives play

everywhere an important role. Who are then the social actors,

with differing economic interests and differing political views

and political power, who spontaneously or self-consciously will

defend genetic resources in rural areas and also in the forests,

from the highland areas of the Andes where "the lost crops of the

Incas" are actually under cultivation to the agroforestal systems

of the lowlands of Amazonia?

We are now witnessing the birth of a new, self-conscious

agroecological movement in Latin America and elsewhere, with a

peasant social base and a peasant pride in their own peoples'

biological achievements over thousands of years. This new socio-

political movement (part of a worldwide slowly emerging trend of

ecological neo-narodnism) will be able to use the ecological

critique developed in the rich countries over the last forty

years, against modern agriculture. In Western Europe and the

U.S., agricultural historians and agricultural economists have

paid almost no attention to the biological impoverishment of

modern agriculture, swept under the carpets of "increases in

productivity" of conventional economics or "development of

productive forces" in mainstream Marxist historiography, but

starting even before Rachel Carson in 1962, there had been a

_________________________

[5] Comision Coordinadora de Tecnologia Andina (Apdo. 14.0426,

Lima, Peru), Actas de la reunion del Cusco sobre biodiversidad

campesina y biotecnologias, 1990.

 

 

 

4

 

 

 

 

 

number of local episodes against the use of pesticides. For

instance, techniques of integrated pest management were used in

coastal Peru, in the cotton plantations of the Can~ete Valley in

the 1950s,[6] even though at the same time, there was in coastal

Peru a successful campaign in order to erradicate pre-hispanic

varieties of colored cotton, as sources of pests for the

commercial cotton plantations. This campaign is now regretted by

Peruvian agronomists.

Some years after the alarm over the use of pesticides arose

in different parts of the world, another approach was taken in

order to understand and criticize modern agriculture. This was

the study of the flow of energy in agriculture[7] which showed

that modern agriculture made an increasingly inefficient use of

outside energy inputs, while traditional agriculture had used no

other energy source from outside agriculture than sun energy.

The question was immediately asked by ecological economists of

whether the increased economic productivity of modern agriculture

was merely an artifact of the low price of fossil fuels.

Discussion of this issue continues to this day. It figured as a

political argument in the SAM program for food security in Mexico

in the early 1980s.[8]

While a traditional peasant farmer, if he or she has rights

to land, will automatically have also access to sun energy and at

least as much water as it may rain on his or her land, and will

also command a "fourth resource," i.e., the seed for his or her

_________________________

[6] Conference paper in M. Taghi Farvar and John P. Milton,

eds., The Careless Technology: Ecology and International

Development (Garden City, NY: The Natural History Press, 1972.

[7] David Pimentel, et. al., "Food Production and the Energy

Crisis," Science, 182, 1973, pp. 443-49; Gerald Leach, Energy and

Food Production (Guilford Surrey, IPC Science and Technology

Press, 1975; J.M. Naredo and Pablo Campos, "Los balances

energeticos de la agricultura espan~ola," in Agricultura y

Sociedad, 15, 1980.

[8] A. Schejtman, "Analisis integral del problema alimentario y

nutricional en America latina," Estudios Rurales

Latinoamericanos, 6 (2-3), 1983, pp. 141-180; "Campesinado y

seguridad alimentaria," Estudios Rurales Latinoamericanos, 10

(3), 1987, pp. 275-311.

 

 

 

5

 

 

 

 

 

crops, modern farmers depend much more on an external energy

subsidy from fossil fuels. They are also more polluting. And

they have lost control over the "fourth resource."[9] Here again

we could do some archeology of ideas,[10] tracing back long ago

the first use of expressions such as "genetic erosion," not as an

exercise in erudition but in order to show how ignorance of the

ecological and social impacts of technical change was socially

hidden under the ideology of progress.[11] Thus, quinua, kan~iwa,

etc., have not been lost in the Andes, and hundreds of varieties

of potatoes remain, developed through peasants plant breeding.

Peasant farmers have insisted in sowing them not because of the

recent efforts by ethnobotanists and the agronomic institutions,

and certainly not because of monetary incentives, but because

their logic has been not only the logic of the market. In

Mexico, hybrid maize has not yet taken over. In the rich

countries, the extension of the market meant great, ignored

losses of genetic resources, rarely mentioned in textbooks of

agricultural history, perhaps in the poor countries an

ecologically-extended market, where genetic resources are

properly valued, would combat genetic erosion.

The economics of technology took as a classic case the study

of the rate of return on the research and development of hybrid

maize in the U.S. fifty years ago.[12] The ecological context was

left out, the complementary inputs for such monoculture were

counted simply at market value, without any item for

_________________________

[9] This is Henk Hobbelink's description. He is the founder of

GRAIN (Genetic Resources Action International), a NGO based in

Barcelona which provides information on the importance of and the

threats to agricultural biodiversity.

[10] As we did for the history of the study of the flow of

energy in agriculture, J. Martinez Alier with Klaus Schluepmann,

Ecological Economics: Environment, Energy, and Society (Oxford:

Basil Blackwell, 2nd ed., 1991).

[11] Mario Tapia in Peru has been writing a history of the

Andean scholars who started the tradition of collecting peasant

varieties in the 1920s and 1930s.

[12] Zvi Griliches, "Research Cost and Social Returns: Hybrid

Corn and Related Innovations," Journal of Political Economy, 66,

October, 1958, pp. 419-31.

 

 

 

6

 

 

 

 

 

externalities from agrochemicals, use of fossil fuels, increased

soil erosion, and no item measured the costs of the loss of

biodiversity which makes hybrid maize in the U.S. dependent on

the imported genetic wealth of Mexican folkseeds and wild

varieties, given away gratis, a beneficial externality to U.S.

agriculture for which there was no market, and which therefore

had no chrematistic value. The development of hybrid maize, and

later of the HYV of wheat and rice, gave a large impulse to the

process of genetic erosion which is contemporary of the new

farming system based on mechanization and a monoculture in every

field.

Since the so-called improved varieties of modern agriculture

cannot do without a continuous flow of new genetic resources in

order to cope with new pests and new environmental challenges,

and since they provide a short-run economic advantage (in the

chrematistic sense) over traditional agroecology, the growth of

production for the market undermines its very conditions of

production, i.e., agricultural biodiversity, and a new

socioecological movement is born in order to resist this

degradation.[13]

 

Should Agricultural Biodiversity Become a Commodity?

The expansion of market exchange implied not only the actual

inclusion in the market of inputs and products which were outside

it, but it also implied, on another plane (emphasized by Martin

O'Connor, following Baudrillard), the ideological appropriation

by capitalism of elements of nature hitherto external to the

market system. Thus, the ecologically-extended market implies

giving chrematistic significance to environmental resources and

functions which were outside the market. Agricultural genetic

resources were outside the market but they were of great

ecological significance for the human economy (in the sense of

oikonomia). Once humankind has been immersed in a generalized

market system (and it also has grown in numbers, and for some

groups in the exosomatic consumption of energy and materials),

_________________________

[13] This fits in with James 0'Connor's notion of the "second

contradiction" under capitalism, cf. his introduction to the

first issue of the journal CNS, 1988.

 

 

 

7

 

 

 

 

 

then the lack of market valuation of such resources and services

which were the common patrimony of humankind has perhaps led to a

wasteful use of them. Hence the idea that, in principle, placing

chrematistic values on environmental resources and services would

be conducive to a more ecological economy, and, in these

instances, it would also favor the poor. Therefore, further

negotiations after Rio on biodiversity, might eventually be

conducted under the proposals outlined in this paper, which imply

a redistribution of income as part of such environmental

policies. How large the redistribution of income would be is

impossible to say, because we cannot know what the price of such

environmental resources and services would be. We are aware,

however, that the poor sell cheap commodities, and they also sell

cheap environmental commodities. There have recently been some

glaring examples of this.

The first example is the low indemnities allocated by the

courts for the victims of the Bhopal disaster, lower (although

the case is still open to revision) than the indemnities paid for

by the memorable Exxon Valdez oil spill. Here one sees the truth

contained in memorandum, "Just between you and me," by Lawrence

Summers, chief economist of the World Bank: "The measurement of

the costs of health-impairing pollution depends on the foregone

earnings from increased morbidity and mortality. From this point

of view a given amount of health-imparing pollution should be

done in the country with the lowest cost, which will be the

country with the lowest wages. I think the economic logic behind

dumping a load of toxic waste in the lowest-wage country is

impeccable and we should face up to that."[14] Union Carbide

would have been bankrupt by the damages to be paid, had the

accident taken place in a North Atlantic country.

The second example is the Costa Rican deal with the Merck

company in 1992, through INBIO (Instituto Nacional de

Biodiversidad).[15] It is not a case of agricultural genetic

resources but rather of "wild" genetic resources, but it is most

_________________________

[14] "Let Them Eat Pollution," The Economist, February 8, 1992.

[15] Ernst A. Brugger y Eduardo Lizano, eds., Eco-eficiencia.

La vision empresarial para el desarrollo sostenible en America

Latina (Bogota: Oveja Negra, Business Council for Sustainable

Development, 1992), pp. 289-293.

 

 

 

8

 

 

 

 

 

relevant to my discussion. While the World Resources

Institute[16] typically praises the "recent agreement between a

major drug company and Costa Rica (which) deserves to be widely

copied" the deal is creating in Latin America a major uproar, not

least because Costa Rica shares genetic resources with

neighboring countries. The deal implies, of course, the

recognition of rights on genetic resources ("wild" resources, in

this case) but, on the other hand, it gives no assurance that

traditional knowledge and the conservation of biodiversity will

be able to compete by themselves with other land uses which give

a higher rate of return in the market. The deal is for one

million U.S. dollars to be paid in two installments for the

exclusive right to the information and use of genetic resources

in a large protected area of Costa Rica. It is a low price.

Unless there were additional costly measures for conservation

(legal regulation, police vigilance) paid for by the Costa Rican

authorities, plus the self-interest in conservation of parts of

the local populations, the small chrematistic incentive provided

by Merck would be too low in order to prevent deforestation and

genetic erosion. However, it is only normal that Costa Rica

should sell cheap.

There is a parallel here with debates within the feminist

movement some years ago. The analogy is not far fetched since

the debates were connected with the same root economic cause (the

failure of the market to measure services essential to the human

economy, in the sense of oikonomia). Should the reality of

unpaid domestic work, given by women because of their social

subjection, be denounced at the moral and political plane, and

changes be sought to the unequal distribution of labor by moral

persuasion and social changes, or would it be a good idea to give

chrematistic significance to such work by attributing to it a

domestic wage, similar to the wage the market determines for

remunerated domestic work by outside help? Peculiar labor

markets make such remunerated domestic work relatively cheap, but

apart from this, many feminists felt that a domestic wage would

add insult to injury, since the social value for the oikonomia

(for the human economy) of caring for children and for the family

_________________________

[16] World Resources 1992-93 (New York: Oxford University

Press, 1992), p. 10.

 

 

 

9

 

 

 

 

 

would not, and could not, be properly reflected in a price

established by market criteria.

In the case of environmental externalities there is the

further issue of intergenerational effects. There is no

guarantee at all that the ecologically extended market in which

today's preferences are expressed will give sufficient importance

to future needs. The unborn cannot come to the market, whether

ecologically extended or not. The implicit discount rates might

be too high, not only because of selfishness but also because of

exaggeratedly optimistic views regarding technical progress and

economic growth. But, apart from the short time horizons they

might share with the rich, there are other reasons why the poor

sell cheap. First, the distribution of assets in the world is

very unequal. Second, the world labor markets are terribly

segmented, by racial discrimination, gender inequality, unequal

access to education, and not least by practically forbidding poor

people to move freely in the world, as we see in the many deaths

at sea in Haiti and Morocco. In the third place, while free

mobility is practically forbidden, on the other hand open markets

are forced upon people, nobody is allowed in practice to live

outside the market. Even subsistence peasants cannot retreat from

the market if they have not enough land, sufficient water, their

own seed. In such circumstances, poor people will have to sell

cheap commodities, they will also sell cheap environmental

resources, and they will accept pollution cheaply. Thus, in the

history of the world economy, even when rights to health

protection are instituted due to pressure from labor unions or

international norms, free wage workers in poor countries who

suffer a disproportionate share of environmental hazards (in

mines, in plantations) accept such hazards cheaply, if not

gladly. It is not an ecologically extended market but eco-social

movements that can give an answer to the destruction of the

conditions of production.

In the discussions on the "second contradiction," some of

the main issues have been whether the increase in costs (when

social movements complain against externalities, or when free

resources or environmental services are given money values) will

produce something similar to what used to be called a "profit

squeeze," and also whether the inclusion in the market of

resources and services which were outside the market will help

capitalism to expand its sphere of action.

 

 

10

 

 

 

 

 

In this paper, by taking the example of agricultural genetic

resources (which have been lost because of modern agricultural

techniques, and are still preserved in traditional agricultural

practices), I have asked the question of whether paying for such

resources (in the form of farmers' rights, or intellectual

property rights) will stop or aggravate the destruction of such

conditions of agricultural production, and I have also asked who

will benefit from the inclusion in the market of such genetic

resources which up to now were outside the market, as the

"patrimony of humankind." They are relevant questions, for a

politically hot issue as biodiversity has become. Similar

questions could be asked for other environmental resources and

services, for instance, the earth's C02 "cleaning" facilities

provided by new vegetation and the oceans, also considered up to

now the "patrimony of humankind." Should they be brought to the

market? Who would profit from this?

 

 

On the Second Contradiction of Capitalism

By Carla Ravaioli

In one version of his theory of "the second contradiction of

capitalism," O'Connor writes: "Global capitalist development

since WW II would have been impossible without deforestation, air

and water pollution, pollution of the atmosphere, global warming,

and the other ecological disasters; without the construction of

megacities, with no regard for congestion, rational land use and

transport systems, and housing and rents; and, finally, without

the reckless disregard for community and family health, physical

and emotional, education, and other `components' of the

socialized reproduction of laborpower -- not to speak of the

welfare of future generations. If global capital had bothered to

reproduce or restore the conditions of production as these

presented themselves at the end of the post-WW II reconstruction

period, world GNP growth probably would have been no more than

one-half recorded rates, perhaps only one quarter of recorded

rates."1 Even more explicitly the concept is reaffirmed in the

_________________________

1 James O'Connor, "The Second Contradiction of Capitalism:

Causes and Consequences," Conference Papers (Santa Cruz: CES/CNS

 

 

11

 

 

 

 

 

conclusion of the same text, when O'Connor speaks of "the rate of

depletion and pollution of nature as dependent on the rate of

accumulation and rate of profit."

As far as I know, this is the only passage where O'Connor so

clearly focuses on, and give reasons for, the relationship

between environmental disruption and the growth of production.

The thrust of his work is to show and illustrate in great detail

the double crisis which, according to his analysis, strikes

capital today: demand crisis, as a result of labor exploitation,

or the "first contradiction," and crisis from the cost side,

stemming from exploitation of the conditions of production

(including the natural environment), or the "second

contradiction."

Almost casually, almost hidden inside O'Connor's large

output, we find the very crux of the problem. This is that the

environmental problem shows itself as the direct and unavoidable

consequence of the capitalist economic system, where the

production and accumulation of capital -- the basic principle of

capitalist economy -- reveals itself as the main cause of the

ecological crisis. The theory itself is thus forced to ask the

basic question: How can the finiteness of our planet carry an

infinite and continually increasing quantity of goods (and its

consequences, such as consumption of exhaustible resources,

pollution, waste, global warming, ozone problems, etc.)?

I think that this point should be emphasized more and

analyzed in more detail. This doesn't mean that our critique of

capital can be limited to the ecological problem. We can't talk

about the exploitation of nature without also talking about the

exploitation of labor; nor can we forget that both are aimed at

higher accumulation and profit rates. A proper political

struggle for the protection of the environment has to be red

green (perhaps the hypothesis should be red green pink, looking

for common points, similarities, and connections between social,

environmental, and women's problems).

Nevertheless, I don't think that the two problems, the

social and the environmental, can be put on the same plane, or

confronted as the same kinds of problem. They both start from

the same root. They both can be solved only if we're able able

_________________________

Pamphlet 1).

 

 

 

12

 

 

 

 

 

to overcome capital, or, at least, change it deeply. But I

believe that we must distinguish between the two phenomena, which

do not proceed at the same pace. On the contrary, they

frequently appear in different times and places; they can even

conflict with each other. So I would distance myself from

O'Connor's assertion, "the more capital exploits labor, the more

it exploits nature, and vice-versa." This is not always true, at

least, not as a rule.

Think of the Eastern European countries, where environmental

disruption is no less serious than in the West, and frequently is

much worse. This fact cannot be explained by saying that these

countries were not "socialist," except in name. This is true,

but it's also true that in these societies the often dreadful

exploitation of natural environment is related quite differently

to the exploitation of labor, in comparison with Western or Third

World realities. Let's remember also how many times the workers

and their unions fiercely opposed anti-pollution measures, i.e.,

how many times -- in the immediacy of the given situation --

reduction of environment exploitation means increase of labor

exploitation.

To understand this, I think we have to look for other and

more distant causes, deeply rooted in the world economic

organization. As we know, and as O'Connor has noted, the left

historically regarded the basic values of capitalism as positive

ones -- industrialism, productivism, GNP growth, international

competitivity, and so on -- and pursued them as the left's own

aims, identifying them with social progress, and considering them

as absolute priorities.

This did not happen without reasons. For a fairly long

period, the coming of industrial society was on the whole a

positive event, one which allowed many more human beings than in

previous societies to live on the planet. Also, until a certain

moment, in the West industrial society has resulted in a

remarkable improvement in general living conditions of most

people. Despite exploitation and alienation and enormous

differences in distribution of wealth, and despite all the well-

known negative consequences of the intensive urbanization

process, not all but most Western people have enjoyed

considerably higher standards of living (in food, housing,

education, sanitary conditions, disposable income, etc.). I want

to stress "until a certain moment" and only in Western

 

 

13

 

 

 

 

 

industrialized countries.

In fact, the same production growth and accumulation, which

resulted in a remarkable improvement of conditions in the West,

were causing a continuous attack on the balance of ecosystems --

because production means pollution of the natural environment and

consumption of exhaustible resources. Pollution and consumption

of energy and raw materials can be controlled and restrained, but

not completely avoided. Continuous production growth means

continuous growth of ecological disruption, even if the most

refined ecofriendly rules and processes are observed.

Exploitation of labor and exploitation of nature therefore

do not proceed at the same pace, at least, not in a directly

proportional sense, as we would infer from some of O'Connor's

passages. On the contrary, we can have a mounting ecological

crisis while accumulation is in good health, which is exactly

what happened in the last two centuries in the Western

industrialized world.

Capitalist accumulation (as O'Connor says) is based on the

maximum externalization of social and ecological costs. But

these two categories of costs did not attract the same attention;

they also had quite different fortunes in the history of

industrial relationships and government policy. Social costs

have been partly paid by the state (through welfare and the like)

and partly have been internalized by capital under pressure from

workers' struggles. But ecological costs have been practically

ignored till a few decades ago.

So deeply rooted in culture and in common sense was the

belief in the human right of free and predatory use of nature, on

one hand, and its inexhaustible generosity and strength, on the

other hand, that almost no one worried about the damage caused by

industrial activity. This damage became more serious as

production increased and as the composition of production

changed, with the more massive use of synthetic, heavily toxic

and non-biodegradable materials.

Then the carrying capacity of ecosystems started to falter

under the pression of increasing pollution, and the environment

became unsustainable, not only for nature, but also for people

(who are part of nature). In this way, society's exploitation by

capital began to pass not only through labor, but also through a

worsening in the quality of life.

When taps give you trichloroethylene water; and at the

 

 

14

 

 

 

 

 

market you buy pesticide-treated apples and mercury-poisoned

fish; and "no bathing" signs stand on seashore and rivers; and

urban congestion paralyzes traffic; and even breathing becomes

dangerous -- when everyone in his or her life experiences what on

a planetary scale are destroyed forests, spreading deserts,

lessening of biodiversity, changing climates, and weakening the

ozone layer -- at this moment the same undeniable improvements

that industrial society has brought to people in the Western

countries must be questioned, or at least firmly reconsidered.

So it is not true that capitalist accumulation is such an

unconditional benefit for workers. And left policies based on

growth-as-progress reveal themselves as founded on illusion. A

car, a boat, a second house, a microwave oven, a pocket phone,

etc., for almost everybody mean not only a progressive

devaluation of commodities which were highly appreciated insofar

as they only belonged to the few (as Fred Hirsch wrote). They

mean also the progressive poisoning of the world, and of the

human species.

It is at this moment that -- proceeding on the trail of

O'Connor's theory -- the first and the second contradiction tend

to meet and to compound each other, first, in strictly economic

terms, as O'Connor explains, with increasing costs (caused by

environmental disruption which companies are in some measure

obliged to internalize), and second, with stagnation of demand.

This is a double crisis that hinders accumulation mechanisms, one

that more hysterical quests for "new" production processes and

products are not able to solve. Environmental crisis and

accumulation crisis now take place at the same time.

In this convergence of environmental and social

exploitation, a historical, cultural, and anthropological crisis

has emerged -- one that questions not only the production system,

but also our habits, our way of living, consuming, wasting, and

thinking about nature and about ourselves as part of nature. In

short, we are questioning the very way of being that we have

inherited from history.

So, "if we regard the rate of depletion and pollution of

nature as dependent on the rate of accumulation and rate of

profit," as O'Connor suggests (and I agree), it is logical and

necessary to stop or at least drastically reduce the growth of

production. But, given the organization of modern Western

economies, is this possible? How to propose such a change

 

 

15

 

 

 

 

 

without running the risk of a serious rise in unemployment,

poverty, marginalization, and violence? In a word, can we (and

if so, how) save the environment from more dreadful disruption,

and at the same time satisfy the needs of modern societies,

without abandoning the improvements in our standard of living

that the industrial system undeniably provided us with?

As I pointed out, the appearance of the environmental crisis

as an urgent and inescapable problem marks a time border between

the positive consequences of industrialization and increasing

ecological damage which frequently overwhelmed and negated these

consequences. But other boundaries have always limited the

"goodness" of accumulation, namely, those that separate developed

countries from Third World, the more than three quarters of the

population of the planet who received little or no advantages

from the arrival of capitalist industrial economy and its social

consequences. On the contrary, at the same time that an

increasing number of people became better off in the West, in the

South masses have become more impoverished.

Even after the end of the most savage colonialism, when

Western intervention has presented itself as a donor of

civilization, with intentions to genuinely improve conditions,

these countries have been obliged to accept the import of foreign

models, which have destroyed previous economic, social, and

ecological balances without permitting the development of new

ones. So the Third World has been paying for Western

development, as the environment as been paying for it all over

the planet.

But here lies a real problem. The hypothesis of restraining

accumulation, highly problematic even in affluent countries,

looks decidedly unthinkable for countries where people are

starving, where goods to fulfill basic needs are missing, and

where the need for material growth imposes itself as an absolute

priority for peoples unable to enjoy a barely decent level of

life, or even survival. This is an indisputable truth, but it

does not exempt us from thinking that even a quite modest

development in the South, if it copied the Western model,

inevitably would mean an overwhelming increase of pollution,

consumption of exhaustible resources, and ecologic disruption in

all its many terrifying aspects.

Such is the problem that humankind has to confront nowadays

-- a problem which has no comparison in the past, and which is

 

 

16

 

 

 

 

 

becoming more serious given the continuous growth of the world

population. So far, no one has the solution. But we can now

point out some certainties on the negative side: the industrial

capitalist system is no solution; the planet can not survive an

economy based on the unlimited production of goods, on the

accumulation of capital.

Some remarks on trends pertaining to recent world social

changes thus might be useful. We know that the environment and

the Third World are bound to suffer the highest costs of

accumulation. For some time, doubts about the viability of

production growth have become visible, as a result of the

dreadful and increasing poverty of poor countries and ecological

disruption. Recently, the positive effects of two centuries of

industrialization -- higher incomes and more consumption in the

West -- are rapidly diminishing, or at least being restricted to

fewer people.

The United Nations, World Bank, U.S. Federal Reserve Bank,

and other official sources affirm this. Recent reports speak not

only of a tremendous polarization of wealth and income between

the North and the South. They also note the same polarization in

the Western industrialized world. So the growth of production

doesn't guarantee rising living standards even in Western

industrialized countries. Meanwhile, everywhere the ecological

quality of life is decaying.

Don't these trends argue that the world needs a different

economic system? Shouldn't economic science begin to question

itself? As Claudio Napoleoni (a famous Italian economist, now

dead) used to say, economics, as an autonomous discipline, was

born as a theory of capital, and such it remained. Perhaps

changing the theory could help change the reality?

 

 

 

 

 

 

 

 

 

 

 

 

 

17