Of all the causes of world hunger, rich country policies are among the most destructive. Notwithstanding so-called free-trade agreements, subsidies for growing grain in exporting nations are estimated to total almost $1 billion per day. Ethanol-fuel subsidies are siphoning off vast quantities of edible grain from the world's stores. Other subsidies result in surplus food that is sold or donated to needy nations in a way that undercuts the ability of native farmers to make a living.
The patenting of genetically engineered crops has created a host of severe problems, including seed costs that are beyond the reach of small-scale farmers, heightened vulnerability to disease due to mono-cropping, increased reliance on high-cost pesticides, the emergence of herbicide-resistant weeds, and a tilt toward capital- versus labor-intensive cultivation practices.
The Hardwick model, by contrast, emphasizes crop diversity, joint marketing and transportation, less chemical additives, healthier soils, minimal waste, etc.
The goal is long-term social, as well as environmental and economic, sustainability. Employed worldwide, but interpreted locally, the model could not only help address hunger but lessen joblessness and ease such problems as the exodus of rural populations to overcrowded cities.
Where do social investors fit in? Some are directly helping capitalize small, sustainably oriented ventures like those in Hardwick. Some are focusing on hungry regions like Africa, financing micro-businesses or small enterprises in, say, village-level energy generation. A few are sponsoring shareholder resolutions that raise public companies' awareness of the downside of genetically engineered foods. Many are lending their voices to combat climate change through alliances, such as the Carbon Disclosure Project and the Investor Network on Climate Risk. Many more are avoiding investing in Monsanto and the handful of other companies that market genetically engineered seeds.
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Reprinted with permission from The Clean Yield, a newsletter published by the Clean Yield Group, a socially responsible portfolio management group.
