Agrochemical Industry and Agriculture: Together but Still Apart

The World Bank's policies are still supporting the agro chemical industry in a major way. Between 1993 to 1995, the Bank approved US$56.9 million worth of contracts for pesticides and agrochemicals.

Six companies are associated with US$3 million or more in Bank-approved agrochemical sales over the three year period between FY 93-95: Rhone Poulenc (France), BASF (Germany), Zeneca (UK), Sumitomo (Japan), FMC Corp. (US), Helm (Germany). Another five were to receive US$1-3 million: Bayer (Germany), Roussel Uclaf (France), Cyanamid (US), Air Lloyd (Germany), and Hoescht (Germany). The company at the top of this list, Rhone Poulenc in France, was the big winner in terms of sales. In FY93-95 it stood to make US$18.6 million, or 33% of the value of all Bank-approved contracts benefiting the G-7 agrochemical industry. In addition, the Bank hired, through its Executive Exchange program, a senior staff member from Rhone Poulenc.

Two of the Pesticide Action Network's "Dirty Dozen" pesticides appear in these contracts: paraquat and DDT. Contracts to French and German companies support the procurement of almost US$120,000 of paraquat for two Bank projects in Nigeria.

Paraquat is a highly toxic chemical that can cause death in moderate concentrations and which is used as an agent of suicide in developing countries. It is banned in nine countries; in the US, it is restricted to use by trained applicators or persons under their direct supervision.DDT is banned for all uses in 49 countries, is severely restricted in 23 others, and has been found to disrupt the normal functioning of the endocrine system. Again, a French company stood to gain almost US$880,000 from the supply of 250 tons of DDT for use in a Bank-financed health sector project in Madagascar.