From my previous post about microgrids: “We live in an increasingly globalized world, but at the same time we are also moving towards a self-sustainable world, where each community takes care of itself locally.” Over last 5 years, I see myself more aligned to this trend.
Globalization
I used to think that globalization is the way to bring equality around the globe. For example, purchasing a pair of Nike in the United States might help improve the life of shoemakers in Vietnam or China, as most of these shoes are made there. I thought this was faster economic progress for the people in a comparatively poor economy, better than making products for domestic market. I thought it would bring lot of people out of poverty. However, I have realized that it is an incorrect assumption. My thinking was basically trickle down economics, and from history we know that this doesn’t work. It just makes the rich more rich by getting cheaper labor and increases inequality.
There is definitely a need for globalization, it improves efficiency and open-market leads to more opportunities and better cooperation among people. Good products can reach bigger markets and capital can easily flow across boundaries. These improve people’s life in participating countries.
I guess there are good benefits and also big problems with globalization. In an ideal situation people should be able to impose better standards and business ethics to overcome the downside, however, it is difficult to influence foreign governments to make any changes. And why would businesses try to do it anyway as it will reduce their profits?
Balance
The ideal way, as with anything in life, is a healthy balance! We should not pursue globalization as the only solution and final goal. There needs to be a balance between domestic and foreign trade. There should be a local competitor for every import. However, there are lot of raw materials which are not available in every country. In that case, one has to figure out what makes the most economical sense – purchase raw material or finished goods or some other hybrid solution.
The most basic product which is available everywhere locally is food. However, there is still plenty of global food trade. 32 percent of the fresh vegetables, 55 percent of the fresh fruit, and 94 percent of the seafood that Americans consume annually is imported. India’s food import increased by 150 percent over the last couple years. Agricultural products accounted for 24 percent of all global commodity trade in 2017. Checkout this map from resourcetrade.earth for information about per country food trade. Hover over the lines for details or hover over the country name to view all their food import and export. This trade seems bizarre considering that people used to farm and produce their own food for millions of generations. So here I’m going to make a case for local food.
Why local food
One study in the US suggests that fresh fruits and vegetables grown in the U.S. travel roughly 1,500 miles (~2,400 km), on average, before they are sold. This creates so much air pollution considering that they travel in big inefficient semi-trucks. To maintain the freshness of the produce, fruits and vegetables have to be picked before they ripe and then put on these long distance travel. Sometimes these produce are artificially ripened with ethylene gas. It is evident they would have less nutrients and taste than ripe fruits and vegetables.
Since local food doesn’t have to travel long distance, they can be picked when they are naturally ripe. This helps preserve their nutrients and taste. Eating in-season local produce is good for your health, as it contains nutrients needed for the human body in that environment. This study done by a university shows that vitamin content was higher in local seasonal vegetable than the same vegetable imported out of season. There are many similar studies which support this conclusion. On an emotional level, one can easily imagine that the local fruit or vegetable is fresher, healthier and tastes better, because there is less transit time from farm to fork and less spoilage. The shorter distance traveled by food also helps reduce pollution in the distribution network.
Increasing consumption demand of people put pressure on producers to produce efficiently and in large quantity. This created product specialization and producers looked for new ways to become efficient. Millions of animals which are farmed for milk and meat suffer in cruel confinement, these operations are called Concentrated animal feeding operation (CAFO). For companies to produce food at lower price, they inject hormones and do other unnatural treatments. On top of the poor living condition of these animals, these operations are also a huge pollution concern. The cruelty done towards chickens is a difficult read. (Here’s a link if you want to try.)
People who drink milk or eat meat, chicken or eggs should focus on getting their produce from local producers. Demanding local produce destroys these big operations. Small family owned businesses can be better responsible towards treating the animals humanely because they have to care for less number of animals with comparatively better resources.
One of the other big benefit of eating local is it supports your local economy. By buying locally, you are keeping the money in your community, transferring it to the farmers and producers, who in turn can spend that cash locally and create a strong local economy. This will make the local economy less susceptible to global changes and help become sustainable. Supporting local farmers will create more demand for local food and create more green spaces in your city. People want more green spaces to get out and breath fresh air. This also creates a better community and connection becase you can now meet and talk to the farmer who produces your food.
This thought process brought me to my third entrepreneurial effort – Planet Verde. I’m not the founder of Planet Verde, but I helped build the company. Planet Verde is a wholesaler (and retailer) which distributes Sustainable, Local, Organic and Whole foods. At the time of this writing, the company has supported over 100 local farmers/producers by getting their products out in the market, creating awareness and promoting local economy. The company has presence in all major retail chains in Oregon.