Dependence and ecology in contemporary Latin America, part 2: Limits to sub-imperial autonomy

Brazilian agribusiness’s fervour for Soybean cultivation has manifested itself domestically as much, if not more so, than externally, with deforestation accelerating as plantations abound with similar velocity in both the Brazilian Amazon and the Paraguayan Chaco. The domestic intensification of Soybean cultivation can, in large part, be attributed to growing demand from China, the world’s primary soybean consumer (Song et al, 2009). China is the largest market for both Paraguayan and Brazilian soy, with both nations essentially relying on continued Chinese imports to balance their trade deficits (Giraudo, 2020). Accordingly, the impact of Chinese demand on Brazilian agriculture, and on other resource sectors across the region (Ganchev, 2020; Oviedo, 2015), replicates many of the dynamics previously mentioned with regards to Brazilian ‘Subimperialism’ in Paraguay.

As soybeans are typically exported with minimal processing, and monocrop agriculture generates comparatively little employment (Giraudo, 2020), few of the benefits of the soybean supply-chain are appropriated within Brazil. Meanwhile, cheap Brazilian soybeans indirectly support the Chinese labour system by lowering the price of staple foods, especially pork, allowing Chinese manufacturers to keep wages low, thereby maintaining the competitiveness of Chinese exports (Wise & Veltmeyer, 2018). With Chinese demand likely to remain high, it seems inconceivable that either the Brazilian or the Paraguayan economies will wean themselves off of soy and will instead remain conditioned by, and dependent on, the whims of the Chinese industrial system

Furthermore, this integration of soybeans into the Chinese industrial economy exacerbates the existing China-Brazil trade imbalance. 98.4% of Chinese exports to Brazil are manufactures, whilst the majority of Brazilian exports to China are primary-resources, with soybeans representing the single most valuable export-commodity (Jenkins, 2012). Low-price Brazilian commodities thereby fuel an industrial system which exports value-added goods back to Brazil, creating a trade-deficit which entrenches the nation’s dependence on the industrialised core, reproducing the fundamental dynamics observed by dependency theorists in the mid-twentieth century (Frank; 1966; Prebisch, 1962).

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Dependence and ecology in contemporary Latin America, Part 1: The colonization of Paraguayan soy cultivation by Brazilian business

Though its influence may have waned in recent decades, dependency theory remains an indispensable prism through which to regard the bifurcated, or polarized, development of national economies within the capitalist world-system. This framework, in which the persistence of uneven development is attributable to the interrelation between the industrialised core and the underdeveloped periphery, admits both the geographic and historical scope to adequately tackle the hard problems of political economy and to accurately trace the chains of dependency which inhibit peripheral economies. Through two blog posts, I wish to explore how dependency theory can help us understand various ecologies of dependence in Latin America, including Brazilian agribusiness in Paraguayan soy (this blog post) and the role Chinese industrial demand plays in constraining Brazilian subimperial autonomy in soy cultivation (in the second blog post). In this post, the colonization of Paraguayan soy cultivation by Brazilian agribusiness is used to demonstrate that Sub-imperialist powers can achieve relative autonomy within the periphery by making dependent weaker states in their vicinity.

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