Approximating the long-distance gluon dynamics of SU(3)colour by colour-dielectric block-spin variables, we obtain an effective QCD theory of a scalar colour-dielectric field and a massive colour-bleached gluon field coupled to light quarks. The massive vector field produces a strong attraction between qqBAR pairs, which leads to qqBAR condensation when the colour-dielectric field becomes small. We calculate <psi-psi-BAR> and the pion decay constant f-pi as a function of the dielectric field expectation value, by evaluating the fermion determinant in a derivative expansion, and integrating out the bosonic variables. We find that the effective quark-gluon coupling, alpha-s(eff), including quark effects, is large on the surface of bags, where <psi-psi-BAR> not-equal 0, but decreases inside hadronic bags, where \<psi-psi-BAR>\ is decreasing.