The issue of the supply and demand for primary commodities such as coffee is one of the those topics that refers to what Marx called "the surface of society" (the realm of competition amongst capitals, vol. III of CAPITAL) rather than dealing with class relations (vol. I of CAPITAL). Thus, it's one of those areas where Marxian and bourgeois economics are in agreement a lot of the time.That is, a mainstream discussion of the inelasticity of the supply of and the demand for primary commodities doesn't produce results that are that different from what Ernest Mandel said. On the "cusp" between orthodox economics and Marx, Michal Kalecki distinguished between the demand-determined prices in the primary sector and the cost-determined prices of manufacturing.
On the other hand, the role of class relations as expressed in the capitalist world-system (i.e., imperialism) does structure the relationship between the primary sector and the manufacturing sectors in a way that generally favors the latter. This has been brought out in a lot of the "dependency" literature. ------------------------ Jim Devine [EMAIL PROTECTED] & http://bellarmine.lmu.edu/~jdevine > -----Original Message----- > From: Jurriaan Bendien [mailto:[EMAIL PROTECTED] > Sent: Friday, October 10, 2003 3:28 AM > To: [EMAIL PROTECTED] > Subject: Re: [PEN-L] Economics of commodities > > > In his little book of 1974 called The Second Slump (later, > expanded edition: > La Crise), Ernest Mandel already remarks that agricultural > prices are not > formed in the same way as industrial prices, and refers to > Marx's theory of > absolute and differential rents. A significant increase or decrease in > Russian harvests could have a significant effect on world > market prices for > agricultural commodities. He also discusses the industrialisation of > agriculture in his Introduction to Marx's Capital (Pelican > edition), I think > volume 3, and to some extent in his book Marxist Economic > Theory. I studied > agricultural prices for the case of New Zealand once, because > of the problem > of declining terms of trade (for each imported tractor you > had to export > more and more sheep meat, and so on) and I noticed there was > a literature on > it (I was basically working from journals on agricultural > economics). Some > Marxian authors deal with this, for example, Ben Fine (I > think he did an > article on its in the journal Economy & Society). But, it is a complex > subject, because apart from production conditions and cost > prices, you have > to deal with monopoly pricing and protectionism (see also Guglielmo > Carchedi, For Another Europe, chapter on agriculture). That > is, the cost > structure and sale prices of agricultural goods is distorted by > protectionism and agribusiness monopolies. You can get both studies of > specific corporations, and industry studies, and studies of specific > commodities as well. Marketing boards often provide > statistical information > (e.g. http://www.beveragemarketing.com ). > > In his Speech on Free Trade (1848), Marx specifically refers > to coffee: "You > believe perhaps, gentlemen, that the production of coffee and > sugar is the > natural destiny of the West Indies. Two centuries ago, > nature, which does > not trouble itself about commerce, had planted neither > sugar-cane nor coffee > trees there. And it may be that in less than half a century > you will find > there neither coffee nor sugar, for the East Indies, by means > of cheaper > production, have already successfully broken down this > so-called natural > destiny of the West Indies. And the West Indies, with their > natural wealth, > are as heavy a burden for England as the weavers of Dacca, > who also were > destined from the beginning of time to weave by hand. One > other circumstance > must not be forgotten, namely that, just as everything has become a > monopoly, there are also nowadays some branches of industry > which prevail > over all others, and secure to the nations which especially > foster them the > command of the market of the world. Thus in the commerce of the world, > cotton alone has much greater commercial importance than all > the other raw > materials used in the manufacture of clothing. It is truly > ridiculous for > the Free Traders to refer to the few specialties in each > branch of industry, > throwing them into the balance against the product used in everyday > consumption, and produced most cheaply in those countries in which > manufacture is most highly developed." > > Regards > > Jurriaan > > ----- Original Message ----- > From: "Michael Pollak" <[EMAIL PROTECTED]> > To: <[EMAIL PROTECTED]> > Sent: Friday, October 10, 2003 11:59 AM > Subject: [PEN-L] Economics of commodities > > > > Is there an economic subspeciality that studies the > dynamics of global > > raw commodity markets? I'm especially interested in > historical studies of > > agricultural commodities, like coffee & cocoa. > > > > Michael > > > > >
