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date: 24 November 2020

The International Political Economy of Soy Agriculture in South Americalocked

  • Mariano TurziMariano TurziUCEMA University

Summary

International agricultural production has been transformed by the consolidation of the agribusiness model. Multinational chemical and trading companies leveraged their scientific and technological superiority over the producers to advance sales of agrochemical and biotechnological products at the same time that they integrated with traders and processors. By advancing financial scale advantages, international corporate actors established powerful buying positions, determined infrastructural developments, and established a globalized pattern of agricultural economic activity. This has been reinforced by converging demand trends of growing global population, a dietary transition in the emerging world that includes more animal products, a diversifying energy matrix that increasingly includes biofuels and the use of agricultural products as a financial asset class. The international political economy (IPE) of the soybean agribusiness model was articulated with the specific national political economies of Brazil, Argentina, and Paraguay. Differential institutional structures and different political economy coalitions and conditions processed these external conditions in different ways: coordination (Brazil), confrontation (Argentina), and colonization (Paraguay).

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