Role of Multinational Corporations
According to Hoogvelt, the price of food items is expected to rise by 40% in the next decade, resulting in an acute food crisis around the globe (17). The report states that the food expense for every household is projected to rise by 30%. The central aspect that contributes to this situation is the rapid increase of urbanization in developed nations. This results in the replacement of land cover with industrial corporations. Unindustrialized nations are seen as oblivious of this aspect and are therefore increasing the destruction of fertile lands. Such practices that lead to the destruction of valuable resources around the globe at the hands of colonial powers is known as Agro-imperialism.
Most developing nations, particularly in the African continent, are believed to experience the effects of agro-imperialism. Even though nations are endowed with numerous resources, nations continue to grapple with cases of poverty and hunger as a result of numerous aspects. For instance, lack of infrastructure, industries, and constant tussles between the corporate sector and other business entities. Satirically, 40% of available farms around the globe are situated in Africa and the continent’s population that fail to generate their crops, do not benefit from the untapped resources. This provides an opportunity for exploitation from established nations and multinational companies.
When the threats of food crunch became obvious, nations seeking quick solutions begin acquisition or renting of farmlands in various unindustrialized nations with numerous resources. It is projected that approximately 46-57 million hectares of fertile land has already changed ownership through this technique. Nations such as Congo has lent 8.1 million hectares, conforming to one-fourth of its fertile lands. Even though the area of farmable parcels leased by Great Britain in Africa is equivalent to Denmark’s magnitude, a combination of the United States, China, and Switzerland acquired plots as huge as Moldova.
Role of International Corporations in Food Insecurity
The globalization phenomenon is believed to have a substantial consequence on the food structures in developing nations globally. Forces manifested by globalization, for instance, liberalization of markets and trading, the flow of capital, and suburbanization, have altered the quality of food systems by expanding variety and food affordability. They have also altered the value and nutritious aspects of food. Nonetheless, the upsurge in accessibility, accessibility, and affordability of foodstuff by globalization is not considered to be global. Numerous individuals in unindustrialized nations are unable to afford foodstuffs, which is attributed mainly to globalization forces, markets for western-style, and manufactured items. Globalization harms this type of market power in three different ways. Foremost, transnational corporations become rivals with local manufacturers by providing food products to the local industry. Second, this exerts pressure on the local producers, to diminish the prices and upgrade the standards. Lastly, if local manufacturers fail to lower the rates and upgrade the standards, many are compelled to exit the industry. This method precisely permits the domination of the local sector, therefore pushing away local producers from the industry.
In most cases, multinational corporations retail food products at lower prices in unindustrialized nations. This becomes increasingly challenging for local manufacturers to compete. Most of the manufactured products are unhealthy as they contain high sugar and salt levels not suitable for healthy lifestyles. Nonetheless, since great international food companies regulate most markets, local manufacturers grapple for the regulation of the domestic foodstuff schemes. The market authority of multinational companies combined with the distribution of manufactured food items has an effect on food security and nutrition pattern globally.
Works Cited
Hoogvelt, Ankie. “Globalisation and imperialism: Wars and humanitarian intervention.” Revitalising communities in a globalising world. Routledge, 2018. 17-42.