Addressing poverty and security, experts gather at Stanford
FSI scholars approach their research on the environment from regulatory, economic and societal angles. The Center on Food Security and the Environment weighs the connection between climate change and agriculture; the impact of biofuel expansion on land and food supply; how to increase crop yields without expanding agricultural lands; and the trends in aquaculture. FSE’s research spans the globe – from the potential of smallholder irrigation to reduce hunger and improve development in sub-Saharan Africa to the devastation of drought on Iowa farms. David Lobell, a senior fellow at FSI and a recipient of a MacArthur “genius” grant, has looked at the impacts of increasing wheat and corn crops in Africa, South Asia, Mexico and the United States; and has studied the effects of extreme heat on the world’s staple crops.
Despite an increase in food production and incomes worldwide, one in seven of the world’s 7 billion people is hungry.
Upheavals in food prices and the global economy, combined with a growing population’s demands for food and energy, are widening the gap between rich and poor. And that rift is creating new challenges to feed the hungry – most of whom live in remote, rural areas – without depleting the planet’s natural resources.
Stanford’s Center on Food Security and the Environment (FSE) is dedicated to addressing these challenges. Started as a research program in 2006, FSE is celebrating its launch today as a full-scale research center. The celebration is part of a larger conference hosted by the Freeman Spogli Institute for International Studies (FSI) focused on links between international security, food and health care. The institutional elevation signifies the growing importance of food security issues at Stanford and worldwide. And it positions FSE to become the leading academic institution in the field of food security.
“Food security has quickly risen as a critical global issue comparable to international security, global health, and democratization, and will remain a pressing issue in the years head,” said Rosamond L. Naylor, director of FSE. “We’re looking at how to raise people out of poverty so they can afford more food, how to stabilize prices so food isn’t too expensive, and how to grow more food without destroying the environment.”
In an introduction given at FSE’s Global Food Policy and Food Security Symposium Series last winter, Stanford President John Hennessy remarked, “Stanford was founded on the idea that its teaching and research could have a broader impact on society, and the area of food security certainly has that kind of possibility.”
“Our work on hunger, rural poverty, and the environmental impact of food production is critical not only to the future of our lives here in the United States but to the lives of people around the world,” said Hennessey. “We will need to bring together teams of experts from different disciplines if we are going to make important contributions to this work.”
FSE’s dual affiliation with the Freeman Spogli Institute for International Studies and the Woods Institute for the Environment supports these collaborations, and is a key factor to the center’s expansion. The center is led by Naylor and its deputy director, Walter P. Falcon. Both share a long history at Stanford studying international agricultural economics.
Naylor received her PhD from Stanford’s Food Research Institute in 1989, and is now a professor in the department of Environmental Earth System Science. Her interdisciplinary approach to teaching has resulted in popular courses such as the World Food Economy (which she co-teaches with Falcon,) and Human Society and Environmental Change. Naylor was appointed the William Wrigley Senior Fellowship in 2008 in recognition of her multidisciplinary, cutting-edge research and long-term commitment to combating global hunger and environmental degradation.
Falcon, the Helen Farnsworth Professor of Agricultural Policy, Emeritus, served as the director of Stanford’s Food Research Institute from 1972 to 1991. Falcon’s leadership role continued as FSI’s director from 1991 to 1998. Between 1998 and 2007, he co-directed the Center for Environmental Science and Policy out of which grew the Program on Food Security and the Environment.
FSE is now engaged in over 15 major projects with $11.5 million in grant and program funding under management. Productive food systems and their environmental consequences comprise the core of the Center’s research portfolio.
“Roz Naylor and Wally Falcon have worked tirelessly to promote the center’s mission and to secure the funding needed to support the center’s growth,” said FSI Director Coit D. Blacker. “It is gratifying to see FSE’s research and scholarly agendas receiving a resounding vote of confidence from the University as well as some of the world’s leading foundations, agencies and individual donors.”
Young Muk Jeon, "The Financial Crisis and Life Insurance Companies"
The global financial market clearly rebounded from the shock of the 2008 financial crisis. However, recently the market volatility has grown due to oil price hikes, the European debt crisis and the anemic U.S. economic growth rate. A series of financial institutions filed bankruptcies or were sold during the crisis. However, life insurance companies fared relatively well in terms of financial difficulty. In his research, Jeon explores the impact of the financial crisis on the life insurance industry and looks at what are the main reasons for the resilience of the life insurance sector. Furthermore, Jeon presents what kind of strategic actions are needed for life insurers to weather the current turbulent climate.
Jong Jin Lee, "Corporate Communications: Changing with the Media Environment"
Recent changes have occurred in the modes of communication prevalent in South Korea, a rapidly advancing society where newer varieties of interactive media have significantly displaced traditional print and broadcast media among the youngest and most well-educated segments of the population. These changes have also had a profound impact on the quality of corporate communications to the public. In his presentation, Lee will address both the advent of the “netizen” and the hotter media environment for today’s companies in South Korea. Most critically, he will also discuss the evolution of corporate public relations responses to public perceptions and media depictions of crises, illustrating his narrative with striking examples from his own company’s history.
Philippines Conference Room
Over much of the world, the growing season of 2050 will probably be warmer than the hottest of recent years, with more variable rainfall. If we continue to grow the same crops in the same way, climate change will contribute to yield declines in many places. With potentially less food to feed more people, we have no choice but to adapt agriculture to the new conditions.
To some extent, adaptation can be done by moving crops to more favourable areas and by agronomic tweaks. But that will almost certainly not be enough. We will have to give crops a genetic helping hand, infusing them with new genes to allow them to better cope with new climates, and the new pests and diseases they will bring. Where are these genes going to come from?
Some of them could come from completely unrelated organisms, to be spliced into their new genomic homes using advanced biotechnologies. However, there is significant public resistance to that strategy, and it is still unclear how effective genetically modified crops are at coping with heat and drought. We cannot risk putting all our eggs in that basket.
Another source of genes for crop improvement are traditional heirloom varieties, often called landraces, which are still grown by subsistence farmers in many parts of the world, although they are fast disappearing. Large collections of their seeds have been made over the years, creating genebanks that are scoured by plant breeders searching for crop diversity, and which helped spur the Green Revolution in agriculture from the late 1960s.
But there’s a limit to the diversity found in domesticated species, imposed by domestication itself. Cultivated species usually contain a fraction of the genetic diversity found in their closest wild relatives — a legacy of the ‘domestication bottleneck’. Ancient farmers selected relatively few plants from the progenitors of modern crops, in a limited number of places. Although there has been continuous gene flow between crops and their wild relatives where they coexist, a lot of genetic diversity has been lost as agriculture has developed.
We know that the ‘lost’ genetic diversity includes genes for resistance to high temperatures and drought, and to pests and diseases, as well as taste and nutritional composition, and even yield. If there was ever a time to go back and reclaim this diversity, that time is now. In fact, it is already being used more than many people realize. For instance, there is probably no widely grown rice cultivar that does not have some genes obtained by breeders from its wild relatives. But we could be making much more effective, and systematic, use of the reservoir of diversity our Neolithic ancestors left behind.
To read the full commentary, click here.
Feeding a growing population in a hotter world will require exploiting a far broader range of crop diversity than now — and that means valuing wild genes.
Over much of the world, the growing season of 2050 will probably be warmer than the hottest of recent years, with more variable rainfall. If we continue to grow the same crops in the same way, climate change will contribute to yield declines in many places. With potentially less food to feed more people, we have no choice but to adapt agriculture to the new conditions.
To some extent, adaptation can be done by moving crops to more favourable areas and by agronomic tweaks. But that will almost certainly not be enough. We will have to give crops a genetic helping hand, infusing them with new genes to allow them to better cope with new climates, and the new pests and diseases they will bring. Where are these genes going to come from?
In the last two decades there has been a sharp growth in the numbers of people that have been “expelled,” numbers far larger than the newly “incorporated” middle classes of countries such as India and China. I use the term “expulsion” to describe a diversity of conditions: the growing numbers of the abjectly poor, of the displaced in poor countries who are warehoused in formal and informal refugee camps, of the minoritized and persecuted in rich countries who are warehoused in prisons, of workers whose bodies are destroyed on the job and rendered useless at far too young an age, able-bodied surplus populations warehoused in ghettoes and slums. One major trend is the repositioning of what had been framed as sovereign territory, a complex conditions, into land for sale on the global market – land in Sub-Saharan Africa, in Central Asia and in Latin America to be bought by rich investors and rich governments to grow food, to access underground water tables, and to access minerals and metals. My argument is that these diverse and many other kindred developments amount to a logic of expulsion, signaling a deeper systemic transformation in advanced capitalism, one documented in bits and pieces but not quite narrated as an overarching dynamic that is taking us into a new phase of global capitalism. The paper is based on the author’s forthcoming book Expulsions.
Saskia Sassen is the Robert S. Lynd Professor of Sociology and Co-Chair, The Committee on Global Thought, Columbia University (www.saskiasassen.com). Her recent books are Territory, Authority, Rights: From Medieval to Global Assemblages (Princeton University Press 2008), A Sociology of Globalization (W.W.Norton 2007), both translated into Spanish by Editorial Katz (Madrid y Buenos Aires), and the 4th fully updated edition of Cities in a World Economy (Sage 2012). Among older books is The Global City (Princeton University Press 1991/2001). Her books are translated into over 20 languages. She is the recipient of diverse awards and mentions, ranging from multiple doctor honoris causa to named lectures and being selected as one of the 100 Top Global Thinkers of 2011 by Foreign Policy Magazine.
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Sponsored by The Europe Center, the Abassi Program in Islamic Studies, and the Mediterranean Studies Forum
CISAC Conference Room
Ronald I. McKinnon is an applied economist whose primary interests are international economics and economic development-with strong secondary interests in transitional economies and fiscal federalism. Understanding financial institutions in general, and monetary institutions in particular, is central to his teaching and research. His interests range from the proper regulation of banks and financial markets in poorer countries to the historical evolution of global and regional monetary systems. His books, numerous articles in professional journals, and op-eds in the financial press such as The Economist, The Financial Times, and The Wall Street Journal reflect this range of interests.
Event Summary
Professor McKinnon first outlines the two major assumptions behind his paper (available on this page). First, that from December 2008 to August 2011, an inflow of "hot money" to emerging economies resulted from low U.S., European, and Japanese interest rates. Since then, the trend has reversed in the wake of the European banking crisis and bank lending has fallen. Second, the dollar remains the widespread central bank reserve currency despite instability in the U.S. system.
McKinnon voices concern about Federal Reserve Chairman Ben Bernanke's zero interest rate policy, calling it an overreaction to the crisis and a "lose-lose" policy as it deters investment in the U.S. while simultaneously spurring destabilizing hot money flows to surrounding emerging markets. These countries are in turn forced to suppress interest rates to mitigate the inflows, and to build up dollar reserves to keep exchange rates in check. The zero interest rate policy also stimulates carry trades in commodities by speculators.
The belief that under a zero interest rate regime, inflation will stimulate the economy by bringing real interest rates to negative levels, is misplaced in McKinnon's view. He argues that this simply adds uncertainty and interferes with efficient bank intermediation, as banks hold high excess reserves and tighten lending, causing a procyclical contraction as has been seen in the United States and Europe. He contrasts this approach with China, which stabilized its economy following the “dot-com” bust by expanding rather than contracting bank credit. He criticizes U.S. pressure on China to appreciate or float its currency, asserting that these strategies would fail to reduce China's trade surplus.
McKinnon suggests that international reforms should target interest rates instead of exchange rates. He recommends coordination between central banks of the major industrialized countries, especially the United States, European countries, and Japan - to collectively raise interest rates to approximately 2%. This would improve overall bank intermediation, and would benefit both central and peripheral countries in Europe.
A question and answer session following the talked addressed topics including: the likelihood of a coordinated effort between central banks; the potential effects of Kucinich's monetary reform proposal; the potential negative effects on real growth from carry trades, and whether this is a cause for concern; and the effects of bank borrowing trends in Europe on the European monetary system.
CISAC Conference Room
Shorenstein APARC
Stanford University
Encina Hall, Room E301
Stanford, CA 94305-6055
Ronald McKinnon is the William D. Eberle Professor of International Economics at Stanford University. Currently, he is researching trade and financial policy in less-developed countries, the transition from socialism in Asia and Eastern Europe, the foreign exchange market and U.S.-Japan trade disputes, European monetary unification and international monetary reform, and the economics of market-preserving federalism.
Recent books by McKinnon include The Order of Economic Liberalization: Financial Control on the Transition to a Market Economy, 2nd edition (1993); The Rules of the Game: International Money and Exchange Rates (1996); and Dollar and Yen: Resolving Economic Conflict between the United States and Japan (with K. Ohno, 1997). Recent (1997) articles include "Credible Liberalizations and International Capital Flows: The Overborrowing Syndrome" (with H. Pill); "The East Asian Dollar Standard, Life after Death?" (1999); and "The Syndrome of the Ever-Higher Yen: American Mercantile Pressure on Japanese Monetary Policy" (with K. Ohno and K. Shirono, 1999). McKinnon teaches international trade and finance, economic development, money and banking, and financial control in developing and transitional socialist economies.