World Grain - February 2010 - 7

from the editor-in-chief

Grains show benefits from
communism's collapse

n all the celebration and commentary
prompted by the 20th anniversary of the
demolishment of the Berlin Wall, the
importance of this event for global grain
received scant attention. That is remarkable
for anyone who has studied or just recalls the
central role grain had in the bi-polar world
ruling when western nations were arrayed
against countries ruled by communism. Indeed, much of the dissatisfaction ruling in
1989 among peoples behind the Berlin Wall,
not just in Eastern Germany but also in the
nations that were satellites or parts of the
Former Soviet Union, stemmed from inadequate grain supplies, periodic crop shortfalls and inefficient processing and distribution. Mounting envy of the ability of western
nations to grow grain adequate to their own
needs and to have surpluses for export became a major trigger for the wall coming
down and communism's collapse.
Amid all the studying of developments
beginning two decades ago, it is apparent
that many are unaware of what this occurrence meant for the grain industry and its
underlying importance to millions of people.
For instance, some blame the recent economic recession on the unwillingness of
governments, in reaction to the fall of Soviet
rule, to exercise control over financial institutions. Criticism is aimed at the inability or
unwillingness of western nations to seize the
opportunities presented by communism's

WORLD GRAIN.
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Charles Sosland
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Morton I. Sosland
Arvin Donley
Meyer Sosland
Melissa Alexander
Chris Lyddon
Ryan Alcantara

collapse, especially when it comes to managing the economy. Structural reforms seen
as urgently needed in Europe never were addressed, largely because of the astonishing
speed with which Germany was reunified
once the wall came down. Most serious of
these criticisms focuses on Germany, at the
center of Europe, as being fearful of change,
whereas 20 years ago it was eager to embrace change.
Totally overlooked in these allegations is
the market liberalization that is one of the
great dividends of communism's demise. No
evidence of this is more powerful than what
has happened in grain. The nations once
comprising the Former Soviet Union not
only produce sufficient grain for their own
requirements, but have emerged as a leading
force in exporting. Instead of needing to import a third of their domestic requirements,
which was typical 20 and more years ago,
these countries now are aggressive competitors. This has come about in response to a
grain market offering plenty of incentives to
farmers as well as to merchants and processors intent on upgrading the faltering infrastructure left by communism.
The thriving grain market in the countries
that once were under Moscow's yoke has
been a significant force in the modernization of the entire European grain market. It
cannot be forgotten that unifying Germany
strengthened this nation's role in the evolu-

tion of the European Union. No one in 1989
would even have dared dream of the Soviet
satellite nations joining the E.U., attracted in
large part not just by democracy and liberal
economics inherent in the Union, but also by
the promise of participating in the huge grain
market across E.U. members.
Looking at wheat alone, and recognizing improved supplies, growth in size and
a dynamic economy, it is notable that E.U.
consumption has more than doubled. That
contrasts with no change in North America.
Only sub-Sahara Africa shows consumption
growth at a similar pace. When it comes to
coarse grains, where North America enjoyed
a doubling, the expansion in E.U. usage is
close to eight times, once again outstripping emerging markets. Contemplating such
numbers lends wonder to the observation
that Eastern European people protesting
communism did not want to embrace capitalism; they wanted freedom to live their lives
without state control. It is further contended
they did not want "the new cruel world of
efficient markets." Yet, it is that world which
has brought massive benefits in the quality
of life, in the supply and marketing of grain,
and in achieving the freedom that the people
of all these lands enjoy now that the wall has
been down for two decades.

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WORLD GRAIN (ISSN 0745-8991) Volume 28, issue 2,
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Morton I. Sosland
Editor-in-chief

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