Learning from China's food system

Posted November 16, 2010 by Ben Lilliston   

China faces the challenge of feeding 22 percent of the world's population on 9 percent of its arable land. What does this really mean for China's farmers, the environment and the world? And what can we learn from China's experience as we grapple with challenges of development, environment and hunger?

IATP President Jim Harkness, who lived and worked in China for 16 years, will examine the challenge of feeding China and explain why, despite two decades of dire warnings, China’s growing appetite has not brought famine to the rest of the world...yet.

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Exporting privatization

Posted November 12, 2010

When Obama visited India earlier this week, saying India "has already emerged" as a power in Asia and globally, his compliments were loaded.

On Wednesday night at IATP, Leo Saldanha and Bhargavi Rao from the Environment Support Group (ESG) in Bangalore, described India's current tug of war between its traditional commons-based framework (collectively owned resources and landscapes) and the privatization that accompanies foreign direct investment (FDI) and globalization.

In the U.S. today, as highlighted by Shalini Gupta with IATP’s Center for Earth, Energy and Democracy, imagining a model without privatization may be near impossible for many. India's current struggle is more comparable to late-1800's North America—in the midst of the industrial revolution, at war with indigenous tribes, and spurred onward by increasing demand for natural resources and promised riches of industrial development.

The push for globalization in India brings with it a fundamental shift in the environment and traditional way of life. According to Saldanha, jobs are indeed created, but not jobs for the farmers, fishers and indigenous tribes. In fact, the land, waters and forests that provide their livelihoods are being appropriated to private interests and natural resources are being extracted at alarming rates.

Global demand—and India's own push for an increased GDP—dictates that profits be maximized. The traditional commons-based framework and environmental laws, then, are barriers that must be removed. It began, Saldanha said, in the 60s tourist boom: coastal beaches once used for fishing filled up with four-star hotels.

Now, according to Bhargavi Rao, roads are being widened, public parks are being gated and grazing lands are being turned into garbage dumps for corporations. And to make room for these drastic changes to the environment, development advocates are pushing to dilute India’s environmental laws.

In 1986, two years after the tragic Bhopal gas leak, the Indian parliament enacted the Environment Protection Act. It allows companies and individuals to be held criminally (not just civilly) liable for violations of environmental standards. Now, an RFP from the U.S. Environmental Protection Agency is pushing for a move from the current standards to one limited to civil liability in the Indian Ministry of Environment and Forests—a move that would essentially pull the legislation's teeth while protecting foreign investors.

Saldanha and Bhargavi described the underreported thousands of Indian farmer suicides throughout the past decade attributed to this globalization. "The state moved from being a custodian of public land to an appropriating force," Saldanha said. 

What are Leo, Bhargavi and ESG doing to fight back? A combination of protest with litigation and lobbying forms the foundation of ESGs work, but as Bhargavi said, "Protest is backbone of grassroots struggle." One example included forming a human chain around a lake that was nearly sold off to business interests. Another, coalition-based, action included writing a death certificate for the Ministry of Environment and Forests.

The latest effort centers on trying to stop Asia's largest steel maker, POSCO, from being allowed to build plants on forest and coastal lands. Clearance for this project—funded, in part by Warren Buffett, and India's largest-ever foreign direct investment—has been granted but, as one NGO alleges, may have been obtained illegally. For now, the project's progress has been stalled, but not defeated.

Obama's visit earlier this week was more than a goodwill visit, multinational business interests globally and in the U.S. stand to make millions. "Maximizing profits for a few while leaving millions behind," is how Saldanha describes the ongoing changes. And, perhaps Obama's description of India as "already emerged" was a bit premature. If emerging means destroying the environment, displacing the indigenous and taking livelihoods away from poor farmers, surely prosperity lies on another path.

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Watered down 'Roadmap of Action' on climate change

Posted November 6, 2010

IATP's Shefali Sharma reports from The Hague where the Global Conference on Agriculture, Food Security and Climate Change has just concluded.

The closing plenary of the conference ended with a laser light show about answers to the climate change problem and its impact on agriculture. At the closing, the “Chair’s Summary” of the six-day conference was handed to the participants and speakers made references to the idea that this was a roadmap for domestic as well as international action and its implementation would depend on all that were gathered at the conference.

The outcome at The Hague, in the end, was a non-binding Chair’s summary. This is because both governments and civil society organizations raised serious concerns about the first draft of the outcome document that was distributed yesterday morning in which draft language stated, “We collectively developed the Roadmap for Action on Agriculture, Food Security […] to achieve the ‘triple win’ of improving agricultural productivity and food security […]” 

Though the outcome document continued to have a “Roadmap for Action” as publicized prior to the conference, the language of the outcome document was watered down significantly from claims to a “shared understanding” to simply “Understanding the Challenges” in the final draft.

The organizers announced on Wednesday that the draft would not be a negotiated document but that inputs were welcome. Yesterday, Australia, Egypt, New Zealand, Philippines and the United States were just some of the countries cautioning that an outcome document that is not actively negotiated cannot claim to have a common vision for action. There was also a significant amount of confusion during the course of the meeting as to the intentions of such a roadmap. 

A statement by 12 organizations, including IATP, responded to the first draft circulated yesterday by stating, “Those most impacted by climate change and whose livelihoods are most at risk, in particular small-scale farmers, indigenous people and women especially from developing countries, have not been present, or consulted, nor have genuinely participated in this process. A democratic and participatory process should have involved all sectors of civil society engaged on these issues in a process designed to genuinely engage and dialogue with civil society. The ‘roadmap for action’ drafted by a few cannot be claimed to have been ‘collectively developed,’ even by those present at the Conference.”

They further stated, “Our understanding of the problems and solutions differs fundamentally from the framing posed by the organizers. We believe that adaptation has to be the main priority of this conference. The agricultural challenges faced by the poorest and most vulnerable, in Africa but also in Asia, in small-island states, in Latin America, are adaptation challenges. While sustainable farming practices can provide mitigation benefits, the climate crisis is caused first and foremost by the emissions of rich countries and we reject that small farmers are meant now to take on the mitigation responsibilities of the North.” You can read the full statement here.

The second draft that was circulated this morning no longer had references to the “collective” and “shared” understanding. And the third and final draft in the afternoon made minor edits to the morning version.  However, the outcome document remains a collation of a broad spectrum of ideas—none of them agreed and several of them controversial—that cover various propositions through the course of the six days of panels, side events and the ministerial roundtable.        

Seventeen of the 26 pages are in the form of an annex whereby countries, intergovernmental organizations, companies and a few NGOs have listed the policies, strategies and “incentive mechanisms” they will use to carry out their vision of “climate smart” agriculture—a phrase that has been in popular use in the run up to this conference. Vietnam has offered to host a “follow-up” conference in 2012 as the outcome document claims to have created a “living Roadmap initiated during this conference.” 

During the conference, the World Bank also positioned itself to expand its role into funding agriculture soil carbon sequestration projects through its BioCarbon Fund. Warren Evans, director of the Environment Division at the bank stated, “[…] for the first time, we have been able to move forward with methodologies  for monitoring, reporting and verifying soil carbon sequestration from improved agronomic practices […]. This is particularly important because all of us here today want agriculture and soil carbon to be formally eligible for carbon payment in future climate agreements.” 

A second major initiative that was announced today was the Commission on Sustainable Agriculture and Climate Change which will be launched by the Climate Change Agriculture and Food Security Program of the CGIAR and Earth System Science Partnership. The initiative is being supported by the Global Donor Platform for Rural Development. The initiative hopes to have a panel of nine senior scientists to act as commissioners. The commission would begin in early 2011 and aims to deliver  “a clear set of findings” and policy recommendations on agriculture and climate change to feed into such processes as the UNFCCC COP17 and Rio +20 Earth Summit.

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Don't forget the carbon speculators

Posted November 3, 2010

This week, the World Bank, the U.N. Food and Agriculture Organization and a number of governments are meeting in the Hague at the Global Conference on Agriculture, Food Security and Climate Change. The original goal was to develop a Roadmap for Agriculture that would feed into the global climate change negotiations at the United Nations.

One of the key obstacles to developing a joint approach on agriculture and climate change is financing: finding money to help farmers and communities adapt to the effects of climate change while reducing agriculture's contribution to climate change. Carbon markets have been one of dominant proposals for financing agriculture-related projects on climate change.

IATP's Shefali Sharma is in the Hague and delivered the below statement to conference participants on the risks carbon markets pose to food security and greenhouse gas reduction goals.

Between 2007 and the spring of 2008, the food price index shot up by 85 percent, then in a few months, agriculture commodity prices fell by 60 percent. The massive price spike and drop was devastating for developing countries, particularly net-food importers. The food price crisis drove another 150 million people into hunger. According to UNCTAD, the extent of price volatility during the food crisis cannot be attributed to supply and demand alone. There is now a wide consensus that speculation on commodity markets by financial traders had a significant role to play in creating the crisis.

In our discussions in the Hague on food security, climate change and “innovative finance," the discussion on speculation in carbon markets and their impact on agriculture commodities is glaringly missing. 

Carbon and commodity markets are tied together through futures markets. And carbon trading is essentially derivatives trading. Unregulated derivatives trading, starting with mortgage-backed securities, was a major source of the current global financial crisis. This crisis is the reason most developed countries claim they have inadequate public funds for climate finance. Yet, carbon trading, to the scale at which it is being proposed, would create a large secondary market of carbon derivatives that has thus far been poorly regulated. When bundled with other commodities, such as maize, wheat  or oil, carbon derivatives have a large potential to destabilize agriculture prices. A second way that carbon derivatives can destabilize markets is through over-the-counter trading: a preferred mechanism of financial speculators who can make unlimited bets in commodity markets through this window. In 2008, 44 percent of carbon traded on the European Emissions Trading Scheme was through over-the-counter trades. As a result the carbon price in the ETS has been highly volatile and low.

Land-based offsets included in carbon markets therefore have significant implications on land tenure, food sovereignty, biodiversity and the right to food. These linkages need to be carefully examined and have thus far been neglected as a topic of discussion in this conference.

Industrialized countries and their industries have a legal and historical responsibility under the UNFCCC to mitigate climate change. They should not pass this responsibility to countries who have had little to do with creating the problem, but who nonetheless will bear the largest impacts. 

Reliable, predictable and public finance needs to fund adaptation needs in developing countries and there are several proposals including carbon, transport and financial transaction taxes that are on the table that should be considered.

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Reporting on the roadmap at the global conference on ag and climate

Posted November 3, 2010

IATP's Shefali Sharma is reporting from the Global Conference on Agriculture, Food Security and Climate Change at The Hague.

It is the fourth evening of this six-day long conference, which promises to deliver a “roadmap” of concrete actions on agriculture, food security and climate change through a participatory process. This evening, a draft copy of the roadmap is supposed to be made available at the conference center with the announcement that this was “not going to be a negotiated text” and that only a “chairman’s summary” would be produced as the outcome of the meeting.

For three days now, the meetings have continued nonstop from 10 a.m. to 8 p.m. with plenaries morphing into working groups, morphing into numerous side events and an investment fair in the evening.  Participants have complained about not having any breaks or enough time to engage on the numerous topics. The conference has been dominated by panels and confusion has reigned with regards to the objectives of such a “roadmap” that will simply be delivered onto the participants in a top down manner.  Certainly, the chairmen’s summaries of what happened in working groups the day before illustrates that the conference is not meant to necessarily capture the diversity of views (and there are many, with little consensus on anything!), but steadily drive towards a planned outline of a “roadmap.”

Such a shell of an outline was handed to participants today with the headings such as: “Shared Understanding of the Challenges,” “Shared understanding of the Solutions,” “Urgent Need for Action,” and  “A Roadmap for Action.” This latter heading is further divided into “Policies and Strategies” for the catch phrase of the conference: “climate-smart agriculture,” “Tools and Technologies for Climate-Smart Agriculture” and “Financing for Transformational Change.” And yet the working groups have not necessarily been addressing these issues in any meaningful way, nor has there been adequate governmental and civil-society participation in the debates or time to merit a “shared understanding.”

The conference appears to be dominated by agribusiness interests and those promoting opportunities for carbon-related offsets and market-based approaches to solve the climate crisis in agriculture sector in the Global South. The words “mitigation” and “adaptation” have been used interchangeably, particularly by representatives from industrialized countries such as the U.S. and New Zealand, raising concerns that this so-called “roadmap” of the chair of the conference will simply ignore the legal obligations of industrialized countries who are party to the UNFCCC to reduce their own carbon footprint and greenhouse gases domestically and to set the stage for carbon offsets in agriculture.

In response to the proceedings of the conference, Bolivia and Nicaragua on behalf of the ALBA group of countries (Bolivia, Cuba, Ecuador, Nicaragua and Venezuela) made 13 recommendations to the conference organizers regarding the chairman’s summary as the outcome document of the conference. 
They noted that “a process that genuinely seeks to draw together the linkages between agriculture, food security and climate change should involve government delegates from both the agriculture and climate change sectors in order to support fair and effective solutions to the agriculture and climate crises.“ 

They called on the chair to “honor the commitments” under the UNFCCC on mitigation, adaptation and financing. They said, “Developed countries should not shift the burden of reducing their emission to developing countries through the carbon market and offsetting […]” Instead, they called for a “holistic framework” that also includes water management, biodiversity, agricultural prices, commodities markets, livelihoods, employment, salaries, womens’ and indigenous rights and poverty reduction.”

The ALBA group also supported the findings of the International Assessment on Agriculture Science Technology and Development (IAASTD) and referenced the World People's Conference on Climate Change and the Rights of Mother Earth held in Cochabamba on April 2010. They stressed that ecological agriculture “is the route to food security and adaptation to climate change” and as such adaptation should be the main priority of the conference. They noted that a market-based approach will lead to carbon speculation “and inevitably a carbon bubble. On the contrary, we need to get non-sector speculators out of food futures markets. Speculation in food security that leads to mass malnutrition is immoral and should be illegal,“ they said.

They concluded by emphasizing the Adaptation Fund of the Kyoto protocol as the appropriate channel for financing and stressed that further funding could also be obtained through Special Drawing Rights at the International Monetary Fund.

Tomorrow begins the ministerial roundtable to deliberate on the chair’s summary.

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Fairness in food from farm to [every] plate: November's Radio Sustain

Posted November 1, 2010

This month's Radio Sustain podcast is all about food security and farmworker justice: Why does exploitation of farmworkers and modern-day slavery still exist in the United States, and why do some (both domestically and internationally) go hungry while others have more than enough? 

First, IATP Food and Society Fellow Sean Sellers discusses the shocking modern-day farmworker exploitation that takes place throughout the country. In a new campaign, he and IATP Food and Society Fellow Shalini Kantayya have created a video with the Coalition of Immokalee Workers to ask for One Penny More for farmworkers.

Domestically, hunger remains—unsurprisingly—concentrated in low-income urban areas. Mark Winne, author of Closing the Food Gap, is a veteran food security and anti-hunger advocate. He's founded multiple food security organizations, including the Community Food Security Coaltion (CFSC). Winne talks about his ideas on where the food gap comes from and shares his insights on what steps must be taken to close it.

Finally, IATP's Sophia Murphy discusses the state of international food security, and why food reserves hold promise as a tool for stabilizing volatility in agriculture markets that devastates farmers and poor consumers around the globe.

Listen to the latest Radio Sustain (mp3) and check our archives for past podcasts.

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Climate change and agriculture: Are we getting to the heart of the matter?

Posted October 29, 2010

This Sunday, the Netherlands, several other governments, the World Bank and the FAO are hosting a major six-day conference on agriculture, food security and climate in the Hague. Those closely following the climate talks believe that this conference is an attempt to include agriculture much more centrally within the climate negotiations of the U.N. Framework Convention on Climate Change. 

In principle, that is a welcome idea—to finally address the air, water and land-related pollution that industrial agriculture causes and the dangers it poses to our health and the health of the planet. Agriculture, along with land-use changes, is said to contribute up to 30 percent of the gases that are warming our planet to dangerous levels. However, we must be able to recognize real solutions in addressing these problems.

The conference agenda shows scant evidence that the real causes of agriculturally based greenhouse gas emissions will be addressed. For instance, one of the biggest sources of agriculture emissions is industrial livestock factories. According to one FAO paper, the livestock sector contributes almost 80 percent of all agriculture-related emissions. Yet, industrial livestock factories do not appear to be a topic of discussion. 

Instead the emphasis will be on finding “innovative” ways to finance adaptation to climate change in developing countries and “innovative” practices that can help small farms adapt to climate change.  Innovation is well and good, only in this context it appears to mean carbon markets and “climate genes.”  Up to 75 percent of these patented technologies are owned by multinational seed and agrochemical companies such as Monsanto, BASF, DuPont and Syngenta.[1]

Civil society organizations, including IATP, concerned about this meeting and its intentions have joined together to send a statement to these governments, the World Bank and the FAO. They say it’s critical that governments heed the policy recommendations of IAASTD, a comprehensive assessment conducted by over 400 experts. They say that small family farms, laborers, indigenous peoples, women and civil society organizations are already providing practical, just and affordable solutions to the problems of food security and climate change. They just need to be heard.

[1] Others include Bayer, Dow, Mendel, Ceres and Evogene. Source: Syam, N. “Implications of an IP Centric Approach to Adaptation of Agriculture to Climate Change.” Power Point Presentation. South Centre, October 2010

 

 

 

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UN Committee on Food Security concludes on positive note

Posted October 21, 2010

IATP's Sophia Murphy was in Rome last week for the Food and Agriculture's Committee on Food Security meeting. A version of this report also appeared on the Triple Crisis blog.

The 36th meeting of the FAO’s Committee on Food Security (CFS) concluded in archetypal U.N. fashion: one and a half hours of apparently aimless milling about followed by a call to order, a 10-minute exchange during which it becomes clear that the milling about was actually about last—very last—minute negotiations, and, finally, adoption of the report by acclamation. So ended the first meeting of a revamped piece of the U.N. system—a small but fascinating piece.

Why fascinating? Because last year governments agreed to a major overhaul of the way the committee works, and to give the committee a preeminent role in the coordination of U.N. food security policy. The FAO, World Food Program (WFP) and the International Fund Agriculture and Development (IFAD) jointly run the CFS. There are several new mechanisms alongside, including one defining a Civil Society Mechanism to ensure adequate and accountable participation from the nongovernmental sector writ large, and a recently constituted High-level Panel of Experts (yes, another acronym: HLPE) that will be commissioned by the CFS to write reports and more generally to provide the benefit of independent advice and thinking.

The mood was upbeat at the end. Government officials seemed tired but satisfied. And the CSOs did, too. Not excited or exhilarated, but not angry or bored, either. A few governments seemed determined to damn with faint praise (sadly for this Canadian, Canada comes to mind). But others engaged. The United States, for instance, while hardly visionary, was constructive. The budget discussion was a painful rehearsal of so many of the U.N.’s budgetary discussions, along strictly North-South lines. On the other hand, on substance, the divisions were not so predictable.

There are procedural issues to work out for next year. The governments spent hours (and hours) negotiating the outcomes from a roundtable, which seemed a bit tangled. Why not just adopt the report, and spend the negotiating time on outcomes the governments themselves will have to implement? As it is, the HLPE will have its work cut out to make sense of the many proposals and to pick among them because it has nowhere near enough resources to do them all.

On the other hand, there has never been anything like the CFS before—no intergovernmental body was even attempting to concert governments’ responses to food security. Let alone an intergovernmental forum so open to CSO contributions. Particularly in an age when governments have accepted that food security is not a simplistic equation of total availability of grains worldwide divided by the total global population, the need for a CFS in the U.N. system is clear. It is a hopeful sign that so many governments came prepared to engage.

The biggest fight during the meeting was probably around land grabs and how to tackle them. Two processes have somehow emerged, in parallel, serving different audiences. One is under FAO auspices and is known as the Voluntary Guidelines on the tenure of land and other natural resources. The other as RAI, or the “Principles for Responsible Agricultural Investment that Respects Rights, Livelihoods and Resources,”— an interagency process (FAO, IFAD, World Bank and UNCTAD). It has angered many NGOs and CSOs because they have emerged without consultation and instead of starting with the universal human right to food, they build on various corporate social responsibility initiatives.The VG emerged from the 2006 International Conference on Agrarian Reform and Rural Development and have a better pedigree in terms of consultation and broader ownership by NGOs. Take a look at what the Special rapporteur on the right to food had to say: he should know.

For now, whatever happens next must happen soon. The international community has already sat by for too many years as national governments and investors have muddled and meddled in the highly (and rightly) sensitive issues of land ownership and land use. It was encouraging to see a fight in Rome, but it will be far more encouraging if the governments can actually act, and fast.

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Volatile times discussed in Rome

Posted October 15, 2010

I'm in Rome to talk about volatility (my powerpoint here). More precisely, the volatility in agricultural commodity markets and what can be done to a) mitigate it and b) better cope with its consequences. The topic was part of one of three issues the first meeting of the revamped FAO Committee on World Food Security (CFS) has on its agenda. It will be one of the first topics to be addressed by the High Level Panel of Experts created as part of the revamped CFS structure. It's also an issue close to the French government's heart, as it made clear in the short speech given yesterday by France's Minister for Agriculture. France's President Sarkozy has committed to making agriculture a central part of the agenda for the G20 meeting that France will host next May.  

It's great to see that the topic is preoccupying governments. It should be. Of course agriculture prices fluctuate and of course that fluctuation plays a number of very useful purposes in keeping markets on track. Volatility, however, especially unpredictable and extreme volatility, hurts producers, consumers and ultimately undermines investor confidence, starving the sector of much needed capital.

The problem should be tackled both at the source, by limiting the occasion for extreme volatility to occur, and where it hits home, in poor households especially, by providing safety nets and risk management tools. It has to be tackled comprehensively, too. Volatility has several distinct components that need to be considered jointly. There are the futures markets and speculative investors, a problem much discussed by IATP, on this blog and elsewhere. There is the question of grain reserves, the issue I came to Rome to talk about and also a hot topic for IATP writing. Then there is trade - do we have the right rules? What can governments do better?

Climate change is affecting the heart of any food system: the weather. We don't yet know all that it will mean for the future, but for the millions of people coping today with record-setting disasters, from Central America through South Asia with too many stops in between, it is clear that there is a new and particular urgency to addressing volatility quickly and effectively, with as few ideological fights about governments and markets and their respective roles as possible.

This year should see renewed attention from governments on understanding the causes and taking action to at least mitigate volatility. The background paper for the discussion written for the CFS was disappointing: it gave a useful and concise discussion of how climate change was increasing vulnerability to food insecurity but then turned into a very unpersuasive discussion about responses, mostly highlighting the failures of past reserves policies, and not very convincingly. Here's hoping the next iteration serves governments better. Perhaps by CFS 37 (i.e. in one year's time), we could hope to see some binding government decisions on the issues. Fingers crossed.

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Times they are a changing at the FAO

Posted October 15, 2010

I'm writing from Rome, a beautiful city despite the cars. I'm attending the FAO's Committee on World Food Security, a once relatively sleepy piece of the sprawling UN system that last year was given a significant boost by a thorough revamp. Listening to the governments negotiate, agonizing over words (to launch or to discuss? To endorse or to notice? To act by the next session of the committee or at a future session of the committee?) I am mostly pulled back into memories of the days when a UN meeting was a regular part of my life.

But I am also struck by some differences.

There is the technology - someone now has the job of typing amendments into a computer, projected onto huge screens, so that everyone can see the text as it changes. There is the technique - maybe it was just a good day, but the working group report backs were exemplary. Short and on message. Not something I would have expected the system to be good at. But most revolutionary, really, is the presence of civil society organizations - the CSOs. CSOs are a part of the revamped committee, you see. So in the parsing of the sentences that goes into creating a government agreement, you see Via Campesina and FIAN and Oxfam asking for (and getting) the floor, just as the governments do. No governments first rule, no pre-agreed rules about which topics can be addressed. The CSOs spent days in advance discussing the agenda and drafting agreed language themselves. 

Now let's see if all this change adds up to a Committee that can fulfill it's promise. This year will be too early to tell, but so far not bad. I'll know more when I get into the building this morning and find out what was decided after I left at 11pm last night.

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