Here’s a good op-ed from the Sunday NY Times on Nigeria’s palm-oil industry and the switch at the World Bank from poverty-reduction programs to programs rooted in environmental and social theory.
WHEN the World Bank held its annual meeting last weekend, there was much discussion of trade imbalances and currency wars, but nothing about Nigerian palm oil. That’s a shame, because the bank’s loans for plantation agriculture in sub-Saharan Africa and other developing regions — some $132 million of which have gone to palm oil cultivation — have been humanitarian and economic triumphs. Yet now, under misguided pressure from environmental groups, the bank is turning its back on the program.
Palm oil, which is extracted from the pulp of the oil palm, is an essential food in sub-Saharan Africa and other poor regions. Accounting for almost 40 percent of the world’s vegetable oils, it is an indispensable source of vitamins and calories. The developing world is heavily reliant on palm as a source of nutrition because the plant thrives in tropical climates and yields significantly more fats and calories than other options. It gives the developing world — where hundreds of millions of men and women still live on a few dollars a day — the most caloric bang for the buck.
Nigeria’s palm oil industry, which once led the world, was moribund by the end of the last century. But thanks to the World Bank program, it is now one of the world’s largest producers, after Indonesia and Malaysia. In addition to providing food, the palm oil sector offers jobs, employing tens of thousands of Nigerians who earn wages similar to those of college graduates. In a country where most people have limited education, this sector has been essential to helping the broader Nigerian economy grow.
The industry is also diverse, as both small-scale landholders and a growing number of industrial farms have used the World Bank loans to invest in more efficient harvesting and production techniques. The revival of the palm oil industry gives Nigeria hope that its economy will not be forever hostage to petroleum production — and the pollution and graft that inevitably accompany it.
Blood for no oil. The rest here.