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     Mar 14, 2007
Page 2 of 2
THE ROVING EYE

What drives biofuel Bush?
By Pepe Escobar

model for the whole regional ethanol boom - US capital mixed with Brazilian technology profiting from a cheap local workforce.

Inevitably, the ethanol boom also fits the pattern of Latin America - in US hegemonic conception - as a mere "back yard", our "neighborhood" (a favorite Bushism) historically adept at providing fabulous natural resources, slave or semi-slave labor, strategic



outposts, and markets (including financial) for US oligarchies.

No wonder US hedge funds and investment banks, as well as the Sao Paulo agribusiness bourgeoisie, are pouring the champagne. What Brazilian producers actually want, medium-term, is not so far-fetched: a hemisphere-wide E10 brand of gasoline (blended with 10% ethanol).

So the alliances are on the table. In the US, it's the corn-producing Midwest against sugarcane-producing Florida, and ultimately George W Bush against a protectionist Congress. In Brazil, it's Jeb Bush and US investors, allied with Brazilian agribusiness, against the Chavez "threat".

In a rally in front of 40,000 people in a soccer stadium in Buenos Aires last Friday night - parallel to Bush having a steak dinner in Montevideo, across the Rio de la Plata - Chavez stressed the "folly to plant so much corn and sugarcane not to feed humans but to sustain the American way of life". So - in Bush family business thinking - it's Chavez' oil-fueled Bolivarian Revolution against the new Green Saudi Arabia (Brazil). Or is it? Totally absent from the Chavez demonization show is always the fact that what he is doing in Venezuela is to redistribute oil wealth, land and local and regional power - anathema to US conservatives and right-wingers as well as to the greedy, arrogant Latin American white oligarchies, Brazilians included.

Green Saudi Arabia?
The merciless spin in the new Green Saudi Arabia - by Bush and Brazilian Bush family allies - is that ethanol is cleaner than oil, more sustainable and anti-global warming. It's not that simple. Scientists point out that biofuels are not necessarily environment-friendly. For example, palm-oil bio-diesel cultivation in Southeast Asia is increasing carbon emissions. Biofuel production on a very large scale emits a lot of carbon dioxide and involves herbicides, pesticides and fertilizers - all petroleum-based.

It also requires a lot of water. In the case of Sao Paulo state in Brazil, where it rains a lot, this is not a problem. Moreover, southern Brazil holds immense underground water reserves.

Brazil plants sugarcane far away from the Amazon rainforest: 80% in the center to south of the country (60% in wealthy Sao Paulo state, the center of this energy boom). The remaining 20% of plantations are on the northeast coast. The environmental threat by the sugar-ethanol industry is actually to the beautiful Pantanal wetlands. In the case of Malaysia and Indonesia - which want massive export of bio-diesel made from palm oil to the European Union - virgin rainforest inevitably will be devastated: at least 20 million hectares in Indonesia will be razed for new oil-palm plantations.

The unsung heroes of Green Saudi Arabia are the cortadores de cana - sugarcane cutters - a migrant army of at least 200,000 workers who fled the almost Sahara-like Brazilian northeast. They work for a minimum of 12 hours a day under relentless, scorching 30-degree-Celsius temperatures to earn less than $200 a month, living in precarious conditions in crowded guesthouses charging a fortune for rent.

It's this unsung army who will allow Brazil to reach ethanol exports of 200 billion liters by 2025, with sugarcane plantations spreading from 6 million to 30 million hectares. The army will grow exponentially. In Florida it's not that much different - as in Alligator Alley west of the I95 highway: the slaves in this case are Jamaicans and the landowners are Cuban sugar kings very cozy with Jeb Bush.

In the US, Corn Belt farmers - and their congressmen - are the great profiteers of the biofuel boom, as well as corn brokers and refineries. In Brazil - with the lowest cost of production in the world for the sugar industry - profits for Sugar Daddies are even more spectacular. In Sao Paulo, the cost of production is $165 per ton; in Western Europe it is $700 per ton. Large US and European corporations such as French Tereos and US-based Cargill are on a merger-and-acquisition frenzy all over Sao Paulo state, snatching every sugar mill they can find.

Diversification rules. Oil is a thing of the past. Jeb Bush and his Brazilian Green Sheikh pals are in to make a lot of money. And for a bit of R&R, retired George W can always count on the 100,000-hectare ranch daughter Barbara bought last year in the Paraguayan chaco. It may not be the green, green grass of home, but it certainly beats Fallujah.

Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007). He may be reached at pepeasia@yahoo.com.

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