Free Trade or Fair Trade? The Injustice of Agricultural Subsidies
For a long time I have been thinking about free trade versus fair trade. Trying to get developing countries out of the poverty trap and believing in markets I analyzed the reasons for the collapse of the Doha development round. Key reasons?The US and Europe are creating a massive market distortion by their agriculture subsidies. What a double standard to call for free trade but excluding one of the very few areas where developing countries have a competitive advantage. This means: In the case of agricultural products free trade would be fair trade and helping developing countries! Read the full essay.
posted by Jürgen Nagler at 17:58
3 Comments:
Jurgen, this is a very insightful post. I think that the emphasis on both items is important. It is difficult for me to separate the two concepts from each other.
One thing that glares out at me is the fact that if you subtract the negative effect of the trade barriers errected by the wealthier nations of the world from the amount of foreign aid into Africa, then one would find that the damage done by the tariffs and subsidies to African economies actually outweighs the dollar amount of the aid.
How then does one begin to make an impact to somehow change this dynamic?
11:04 AM
Benin, thank you for your comment (and for your great blog, of course).
You pose a very good question and it's of course tricky. I think we, the voters, the people, have to make clear to our political decision-makers that we this unfairness changed.
We have seen successful advocacy in issues such as the campaign against landmines. Furthermore, I think MakePovertyHistory is a great example how individuals remind our politicians to stand up to their promises, in this case the MDGs and commitment to increase foreign aid to achieve them.
Bottom line: Let's join advocacy networks and stand up. We can make a difference!
5:16 PM
It is not free trade or fair trade. There should should be spiritual solutions for the economic problems of the world. Man has to learn first to think of mankind as one family, otherwise man will keep on exploiting man in thousands of ways!
Yes, Africa is our teacher with her long and desastrous sufferings.
The radical change will only occur when each human being decides to learn to live as a spiritual world citizen.
L.L.
9:18 PM
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