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| Invisible
Gold: The Vulnerability of Russia's Indigenous People and Forests |
| [Reprinted from Land
& Liberty, September-October 1993] |
Survival International, whose report3 of this atrocity is
quoted above, have undoubtedly had some success in protecting tribes
and their environments including the Yanomami. They pursue their work
with vigour and integrity. Yet Survival reports that violence against
the Yanomami is increasing, that the massacre took place in territory
officially demarcated by the state as a Yanomami reserve, and after
Survival had campaigned on their behalf for 22 years. The general
picture is one of increasing retreat by indigenous peoples and their
environments before the onslaught of commercial and demographic
pressure. Many believe that the destruction of life and hope that goes
on in the world is a consequence of human wickedness. But the engine
of destruction that compels many huge groups to spread chaos and
aridity to whole regions of the earth, and to commit the genocide of
entire peoples is not within the power of any individual. It lies in
the anti-human structure of the organisation of states and
communities. It is maintained here that the most damaging flaw,
present in every country in the world, is the failure of the state to
collect communally created land values, while protecting the right of
private institutions and individuals to do so. The demographic and
economic effects of this failure render commonplace incidents of the
kind reported by Survival.
Communally created value (land rent) is the value that land still has
even when there is no development on it. That value is a measure of
the demand for the land's advantages of location and its natural
resources. The demand results from the development of the surrounding
community. These benefits to the occupier are not created by him. Yet
the landowner is given the right to exclude others from land and
either to leave it idle or to charge others a rent for the use of it,
and to sell the land to others who will expect thereby to acquire the
same right. He is not required to add value, nor is he put under any
obligation to the state that is protecting his right which is
proportional to the privilege granted. Thus persons and institutions
emerge, empowered to appropriate far more land than they use and
thereby to accumulate wealth which is often used, particularly in
economically undeveloped states, to dominate government, commercial
relations with other countries, and much else. A very sizeable
minority of people also emerge who, confined to poor land or excluded
altogether, are without hope of access to the primary natural resource
on which a working life must be built.
As any land speculator or resource exploiter could tell you, these
values are real, they are not merely an economic concept. They are an
invisible gold strewn across the surface of the earth by the
productive activity of communities of people. The failure to collect
these values for the community, and properly account for them, causes
an enormous waste of natural resources, labour, and capital. It
enables the private appropriation of land values, the creation of a
land market in them, land speculation which causes vast areas of good
land to be held out of use and people to have no place to work or
live, the corruption that plagues those, in both democratic and
totalitarian societies responsible for granting permissions to
individuals and institutions to exploit these improperly accounted
resources. Above all it enables the phenomenon of landlessness which
forces millions of people to move about the earth in desperate poverty
bringing further devastation to peo-whose areas they move.
Yet the correction of this flaw is within the power of the state both
administratively, for it is simple, and politically, because it gives
the state an interest, through the retention of rental value, in
ending these problems which are too formidable and widespread for any
other interest than government to combat. Although the interests
exploiting this flaw are powerful the constituency of potential
opposition includes other equally powerful interests. Furthermore, in
Russia, because the state currently owns the land, the system is
already in place, if unused, and all that is required is to begin
collecting the rental value.
The reforms which the West is pressing on Russia are like a bright
red apple with a worm in the centre. The shiny colourful promise of
western free market democracy, which always looks brighter than it
tastes, has some nourishing substance, but much of it is consumed
before the consumer and the voter, in whose name the apple is grown,
can set their teeth to it. It seems sometimes as if the bugs are
running the orchard. It is not that in Russia communally created land
values are collected, they are not. But in most of the rest of the
world, both advanced and developing, this flaw has been set in
concrete through property rights which protect the right of the few to
own and the many to pay, whether capitalised in the form of premiums
and mortgages, or annualised in the form of rent. This has not yet
become the arrangement in Russia and until it does there exists a
greater opportunity there than perhaps anywhere for a transition to
the collection of communally created land values.
THE CONSEQUENCES OF NOT COLLECTING LAND VALUES
If a market in land values is created in Russia, indigenous people
and wildernesses will face problems which, though peculiar to their
localities in some respects, will be essentially similar to those in
other countries. The driving force of these problems is the same
throughout the world -- the failure to collect the rent. So it will
perhaps be useful to look at Russia's problems in a world context
first.
Deforestation
The forests of Siberia, 6 million sq. km., are twice the size of the
Amazon basin. The pressure to exploit them is increasing, as the
recent case fought by the Udege people against the logging interests
of the South Korean commercial giant Hyundai shows. Many
multinationals are taking advantage of the chaos in Russia to sign
ill-considered contracts to exploit resources.
It can be shown[1] that throughout the world there is no correlation
between forest destruction and either levels of population or rates of
increase of population. The constant factor is the attempt by
governments, corporations, and individuals to extract value and power
from the control of territory. This has been so throughout history. In
Britain probably the greatest period of forest reduction was in Roman
times, by commercial and military interests within the Empire, when,
to Rome, Britain was a third world country. For the multinationals
Siberia is an opportunity for resource extraction and the profit will
accrue to the parent company. The halving of Central America's forest
area between 1950 and 1990 was due to a concentration of land amongst
a small number of ranchers and landowners clearing forest to raise
bananas, cotton, coffee, and cattle. (In 18th and 19th century
Scotland it was grouse and sheep for which Scottish landlords cleared
the highlands of people.) The exclusive landownership system creates
landless people who in turn cause as much and often more damage
through desperate attempts to clear unsuitable forest land on which to
scrape a living.
Tropical forest is being destroyed at a rate equivalent to the whole
of the Siberian forest in about four years. The principle use has been
for agriculture. An even larger area has been degraded, principally by
logging. These depredations are so large they are almost unbelievable.
But they are real. In Central America only 18% of the original forest
remains. The mention of' agriculture' suggests something positive.
However, the agriculture is mostly that of impoverished farmers forced
off better land who have no choice but to clear unsuitable forest land
which soon fails, forcing them to move on and clear more. (In the
Amazon only 7% of forest soil is suitable for annual cultivation).
Their principal route into the forests is along the roads built by the
extractive companies and government. Myers1 has calculated that for
every cubic meter of harvested timber, approximately 1/5 hectare of
forest is destroyed by farmers who come in along the roads.
Landlessness
The land market works by exclusion. Whatever the size of a population
a small number of powerful or rich individuals and institutions obtain
a disproportionate share of land thereby ensuring that a large number
of people are made landless. In developed countries this problem is
partially alleviated by the welfare state which hides the scar and
makes a dependant class out of the landless.
In Brazil 170 million hectares of viable agricultural land is held
out of use. Yet the landless people, many of whom are destroying the
rainforest, can be numbered in millions.
Landlessness has caused the migration of hundreds of thousands of
people across national borders. Large landowners perpetually expel
small farmers and take over their land even when the latter have legal
title. Some 300,000 displaced peasants in southern Brazil moved into
Paraguay after the 1960s and cleared forest areas that are homelands
to the Maya Indian. About half of these have had to move back again,
excluded by Paraguayan absentee landlords who asserted land claims
over the peasant's newly cleared holdings. These people now face
desperate conditions and worsening rural violence. In West Africa
migration has been too massive for computation and has resulted in
widespread deforestation and disruption of tribal areas. According to
the Food and Agriculture Organisation of the United Nations, the total
number of landless people and mini landholders will be 220 million by
the year 2000. But this figure lies against a background of 1.2
billion people in 1990 who were living below the poverty line in
developing countries. This is a fig-ure which also expresses
landlessness, for this impoverishment exists in economies where good
land which could support productive employment is kept idle and
represents the displacement of poor people to low quality land.
Speculation is a major cause of the twin phenomenon of landlessness
with good land held idle. In Brazil most of the land owned by the
large landowners (0.8% own 43%) is held unused and traded like stocks
and shares. Its capital value is swollen in relation to its productive
yield. Antonio Cabrera, Agriculture Minister of Brazil, owns 200,000
hectares but keeps only 41,000 head of cattle on it. Small landholders
are frequently evicted from land, to which they have legal right, at
gun point.
George Monbiot[2] charts the numbers of people, hectares, and murders
involved in land conflicts in Brazil and notes a decline since 1985.
Then there were 636 land conflicts involving 9.5 million hectares,
405,000 people, and 139 rural assassinations. Things are roughly half
as bad now. Monbiot notes, however, that "killings now seldom
take place at the behest of a single landlord: gunmen are commissioned
jointly by the local members of the UDR (the Ranchers' Union). As UDR
members include mayors and judges, this pooled responsibility serves
to institutionalize the crime."
RUSSIA
In Russia the Indigenous Peoples of the Soviet North have a long
history that is not dissimilar. The command economy has been as
terrible a persecutor as any. But today Russia is in a new situation,
a moment of choice. It is clear too that there is some support for
indigenous peoples at the highest levels. It is unusual to find the
President and his prime minister attending an indigenous peoples
conference as President Gorbachev and Prime Minister Ryshkov did in
1990. The Udege people's recent struggle for their land received wide
support including from President Yeltsin, but not from their local
administration!
The destructive feature most peculiar to Russia is pollution. The
land of the Khanty in the Khanty-Mansiisk district has become widely
fouled by large scale clumsy oil extraction. There has also been an
influx of people into their traditional areas following the
development of the oil industry -- an expansion from 100,000 to 1.5
million people since 1961.25 years ago they made up 25% of the
population and now only 1.8%. Until the 1930s the Khanty were more or
less an autonomous people. During Stalin's period their reindeer
herds, pasture land, and hunting rights were taken over by the state,
their nomadic ways of life forbidden, shamans murdered or thrown into
concentration camps, and children removed to boarding schools. As
Survival International describes it[3].
"Pipelines carve through most of their territory, the forests
are cut down and burnt, the lichen on which the reindeer feed is
destroyed by the fires and oil and gas leaks from poorly made pipes,
leaving a landscape scarred by black lakes and poisoned trees. The
pipelines block the migration routes of the elk and reindeer and
leakages destroy the fish and water plants. Oil and gas wells are
dotted all over the taiga; day and night each well is crowned by a
continual fire burning off excess gas. The flames and their smoky
streamers can be seen from miles away, and their smell pervades the
air. There is a very high rate of illness, especially lung diseases
caused by pollution. The birth rate is falling very fast and life
expectancy (45 years for men, 55 for women) is 18 years below the
average for the rest of Russia."
_ A Khanty tribesman summed up their dilemma at a conference
organised by Surgutneftegas, the principal oil company of the region
(in part to give themselves a public relations opportunity).
"I was born here, and I hope that my children can go on living
here. We used to have many reindeer, but now we have few left. When
the petrol workers arrived, they promised us that we would be happy,
but we know now that it was not true, and we have lost our reindeer.
The taiga is empty now, and we don't have enough animals, fish or
birds. How are we to survive?"
It is a picture of obliteration.
The Need for Local Control of Land Use
At the 1990 conference of Indigenous Peoples of the Soviet North
reports of pollution were frequent, indicating that the state has a
history of disinterest in sustainable land management. Tuberculosis is
now one of the most common sicknesses. The Nenets of the Arctic Sea
complain of increased sickness due to radiation from the nuclear
testing carried out in the fifties and sixties at Novaya Zemlya.
Throughout the north reindeer are decreasing, as are fish in the large
river systems of Siberia, and uncontrolled traffic in the summers is
destroying the fragile plants of the permafrost which can take decades
to recover from being trodden down. As the report of the conference
states, "The global significance of this northern ecology is
presumably unknown, but if the industrial process continues unchanged,
most of these indigenous cultures will disappear." Interestingly,
the indigenous people do not ask for the extractive industries to
cease, only that they should extract in a manner that does not destroy
the land, or the culture, or the people. This requirement is one
common to any society including the most developed. People using land
in a locality are able to appreciate the significance of proposed
developments. It is clear that the state has been unable to do so.
Local control of land use has an efficiency that derives from the
knowledge of costs and advantages being proximate to the sites
proposed for use. If the rent is also partly retained by the local
community it will not only empower them financially to manage their
own affairs but will create a context for choice which will integrate
them with the wider community. The people in control will be those who
experience the costs of development by outside commercial forces, but
they will also be those who will benefit from an increase in rental
returns through managing development. This will create for indigenous
people a basis for chosen, as opposed to forced, integration. It will
also help to manage the severe problem of the influx of outsiders. In
the 1920s and 30s when the 26 Peoples, as the indigenous peoples are
known, were allotted their autonomous areas they were all a majority
within them. Now all are minorities, fewer and fewer speak their
mother tongue, and the influx of outsiders has caused their dispersal
across wide areas. As Professor Chuner Taksami[2], a spokesman, put it
at the Conference,
"This is how one way of life, one world-view, and one system of
values is crushed by other ones. When a people loses its feeling of
being master in its own house, it also loses its feeling of worth and
dignity, and this loss is irreparable."
Russia has two laws in place which promise to be of great help. In
the case of the Udege People against Hyundai Corporation, the Russian
Supreme Court ruled that Hyundai's plan, supported by the local
administration but few others, to clear-cut 300,000 hectares of
Siberian forest for logging was illegal for two reasons. It did not
have the consent of local people and it had not received environmental
clearance. But the commercial interests gearing up to sign contracts
for resource extraction in Russia are truly formidable. They will also
have the capacity to influence government at the highest levels and,
as everywhere, will seek to encourage a politics that favours their
interests. The law will not be sufficient, and will not deal with the
myriad tiny incursions that landless people and other causes can make.
A people cannot go to law all the time.
Russia, if it privatises the rent of land, will begin to experience
the kind of problems faced by other countries. Large numbers of people
will be made landless. The opportunities for the private appropriation
of land value will bring with it the other ills -- exploitative
resource extraction, corruption, social conflict, and poverty.
The Need to Collect Rent
The pattern and intensity of factors affecting land exploitation
depends on local conditions in each country, including such
peculiarities as the nature of government incentives and regulations,
and techniques used by landlords to avoid agrarian reform. In Russia
the pattern will be different again. But in every country the failure
to collect the rental value of land provides the occasion for the
operation of these factors.
Susan Hecht[1] usefully identifies three basic ways value can be
extracted from land.
1) Extraction, which is of two kinds -- renewable and irrevocable.
2) Production, involving the application of labour and capital. She
writes," Production implies far more complex and organized forms
of intervention in the natural world than simple extraction, and
incorporates the idea that energy and resources are applied to land to
generate something of value not inherent in the land resource itself.
3) Speculation. Ownership of land provides an opportunity to "capture
fiscal resources, such as capital gains, .... institutional rents,
such as credits and subsidies, and as a means for claiming other
assets. In this case the value of the resource or land has little to
do with its actual characteristics or the labour and resources applied
to it. Or what has been called 'directly unproductive profit seeking
activities'".
It is useful to consider the effect of the state retaining the rental
value of land in terms of these three forms of value extraction.
1. Extraction always takes place in a context of choice. The area
from which extraction is to take place has costs attached to it. Areas
territorially outside the developed economy are seen as relatively
cost free. There are no rents to be paid for access and government
subsidies are often available. Officials can often be bribed to grant
permits at a cost much less than the payment of a rent. (Corruption is
possible because the briber and the bribed share the uncollected
rent). Were rental values of these areas to be annually assessed and
charged to the users it would ensure firstly, that areas within the
already industrialised territory would appear more suitable -- again
because the cost difference would no longer be so great - and
secondly, it would give the state or local authority a vested interest
in sound land management. Long term sustainable forms of extraction
and a commitment to land value husbandry would be politically arguable
because they would protect revenues. Pollution would be costed through
its effect on the land value of neighbouring areas, downriver sites,
and so on. Where the full rent was collected and land values publicly
assessed corruption would be reduced and where a proper local
democratic control -- including indigenous peoples and their areas --
was in place, discussion and evaluation of land use choices could be
made in a manageable and costed way.
2. Production. The effect of avoiding the creation of a land market
and relying instead on the collection of rent would greatly assist
production. As the large purchase price of land, known confusingly as
the capitalised price, derives from the purchase of several years
right to the annual value, the charge of a full rent in proportion to
the annual value removes the capital price. The costs of beginning
productive work on a site would be reduced to the costs of initial
capital plus merely a rent paid to the community. A community thus
financed would be in a position to reduce taxes on capital and labour
which would further reduce the costs of new work. This would greatly
increase within already developed areas the proportion of people able
to demand and deploy capital and labour, and the number able to live
off their own. It would also mostly eliminate the large number of
landless people who are forced to try to develop marginal land,
thereby disrupting the lives and cultures of indigenous peoples.
3. The most crucial effect of all for indigenous people and millions
of landless people would be the end of land speculation. The large
areas of unused and underused land which exist throughout the world --
and will do so in Russia if it privatises land rent -- would be forced
out of the hands of those who hoard it. They could no longer justify
holding out of use something on which they had to pay a charge because
there would be no capital sale value on which to speculate. The
landless person would find himself in a world where all he needed to
begin work in his local economy would be his own hands and brain. Land
would be for the user, and the great migration to the lands of
indigenous people would reduce to the point where it was controllable.
In such circumstances the possibility of locally created demand backed
by local production would reduce the disastrous combination of cash
crops and landlessness. It would end too the ridiculous but frequent
anomaly where government subsidies for development do not go into
production by the user but are siphoned off by the landowner/land
speculator in increased rents and capital gains.
Common Needs
Indigenous people suffer not so much from commercial progress as from
the failure to collect land value for communal purposes. They need not
look far for allies. There are few people in any country of the world
who are not also affected detrimentally in some way and many whose
survival is threatened. Land is needed for everything we do, and so
the conditions of access to it affect everything we do. There are good
grounds for associating the cyclical booms and slumps of the developed
economies with the surge of credit (equity extraction) that
accompanies a rising land market[4]. The pattern of millions being
unemployed and homeless, while a matching acreage of land and housing
is idle, is everywhere. The high access costs of land can make the
acquisition of a home or place of work a lifetime's burden, even for
those considered well off, or put it outside the reach of many, and
can make escape from disadvantage or dependency impossible.
The renewal of life and work that can be achieved by changes of place
is vital if people are to escape poor working or residential
conditions, family violence, punitive sectarian practices, racism, and
many other forms of abuse. Thus we share common ground with indigenous
people throughout the world and no one has expressed better than they
the importance of land to human beings or the importance that our
respect for it has to land. It is the ground on which we all stand.
Whether we live in the city or in the country we must have land on
which to work and play. Unless we have somewhere to lie down, we
cannot sleep. We cannot read a book without space to put our chair,
nor hear even a joke without somewhere to laugh. We need place to be
angry and place to love. We even say we need grounds for belief. And
for the environment ot our planet to have no endless prospect of
health destroys our sense that the Earth sustains us.
We live in a world in which not one of us can be confident of all
these foundational rights and beliefs and there are millions of people
who have them only with constant harrassment. If the rules which
govern our access and use of ground are ill formed they bind our whole
lives into a knot from which many of us can never escape, if they do
not kill us.
The devastation that is caused to people who are made landless, and
to indigenous people whose environments are invaded and destroyed by
the extractive companies and the landless millions, is a devastation
common to all our histories for hundreds of years. The hundreds of
thousands who moved into the Victorian cities of Britain were driven
by the land speculation of the enclosures. Because of the continued
existence of the land market and rent seeking practices by
institutions, and individuals it is a potential devastation for us
all. The invisible gold of rental value is left lying on theground.
Until it is collected by the state it will remain there, a source of
discord and poverty.
References
[1] Colchester, M. and Lohmann, L., edit, The
Struggle for Land and the Fate of the Forests. World Rainforest
Movement, The Ecologist, and Zed Books. 87 Cantonment Road, 10250
Penang, Malaysia, 1993; (A remarkable and recent survey - vital
reading)
[2] Indigenous Peoples of the Soviet North, Document 67,
published by the International Workgroup for Indigenous Affairs.
International Secretariat, Fiolstraede 10 DK-1171, Copenhagen K,
Denmark. July 1990;
[3] Newsletters and bulletins on Russian affairs published by
Survival International, 310 Edgeware Rd, London W12 1DY, UK;
[4] Fred Harrison, The Power in the Land, Shepheard Walwyn,
London, 1983.
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