NationStates Jolt Archive


Cow politics and the economics of starvation.

Eutrusca
27-10-2005, 13:12
COMMENTARY: The US has been subsidizing farmers and the agribusinesses that now run most farmland ever since I can remember. Yet doing this drives the marginal farmers, most of whom live in developing countries, out of the market. Just another lobby? Only if you ignore the poverty that results from its efforts.


Cow Politics (http://www.nytimes.com/2005/10/27/opinion/27thur1.html?th&emc=th)


Published: October 27, 2005
The Australian trade minister, Mark Vaile, pointed out the other day that a typical cow in the European Union receives a government subsidy of $2.20 a day - more than what 1.2 billion of the world's poorest people live on every day. Some experts say the developed world could lift 140 million people out of that mire of poverty if it really reformed the way it managed agricultural trade.

So why is the current round of trade negotiations coming down to the wire, as usual? Will Europe, Japan and America actually keep the promise they made four years ago in Doha, Qatar, to slash their subsidies to farmers? Such a move would finally begin the long-delayed dismantling of a distorted program that has helped rich farmers in the developed world at the expense of poor farmers in the developing world.

But in these last few weeks before the big World Trade Organization meeting in Hong Kong, where negotiators are supposed to reach a deal, attacks and counterattacks are flying. The big industrialized nations are leaving no stone unturned in their quest to keep protecting their farmers. The United States trade representative, Robert Portman, took a big step toward doing the right thing earlier this month when he proposed that the United States would slash allowable farm subsidies by 60 percent if Europe and Japan would cut their subsidies by 83 percent. (The percentage is higher because European countries and Japan have higher subsidies.)

Given all the noise the British prime minister, Tony Blair, and his European colleagues have made about the need to "make poverty history," you would think that the Europeans would jump at the American proposal. Think again. In Europe, farmers are apparently terrified of having to compete without the government around to hold their hands.

So the European Union has not only not made a meaningful counteroffer, but France - the worst of a bad lot - is also doing everything it can to get in the way of even the anemic talk of compromise from the European Union's trade chief, Peter Mandelson. "If you don't believe in trade, then why are you a member of the W.T.O.?" a frustrated Mr. Portman asked rhetorically. Funny, we were just wondering that ourselves.

The developed world funnels nearly $1 billion a day in subsidies to its farmers, encouraging overproduction. That drives down prices and leaves farmers in poor nations unable to compete with subsidized products, even within their own countries. In recent years, American farmers have dumped cotton and other products on world markets at prices that do not begin to cover their cost of production. Europe's system is even worse; the United States' farm subsidies are only a third of Europe's.

It is past time for European leaders to match their actions to their lip service about free and fair trade. A cow in France shouldn't make more than a farmer in Burkina Faso. That is just shameful.

But let's not let the United States government entirely off the hook. The lawmakers in Congress who coddle rich American corporate farmers - often to the detriment of small family farmers - are not helping things. The Senate Agriculture Committee just voted to extend the subsidies paid to growers of cotton, rice and other commodities until 2011, subsidies that were supposed to expire in the 2007 farm bill. This political move is made worse by sneaking the subsidies into a budget bill rather than properly debating them as part of the farm bill.

The Bush administration has done a good job so far in opposing these myriad forms of agribusiness welfare. The United States trade negotiators say the Senate Agriculture Committee's move will make their job at the trade organization talks more difficult. It's hard to preach the free trade gospel abroad when lawmakers at home are busily taking care of their own special interests.
Amestria
27-10-2005, 13:17
One thing to consider about European subsidies is that the Western European country-side faces a population decline. Some of the support for the subsidies comes from a wish to maintain the country side in its current state and stop the wilderness from taking over once again.

In Eastern Europe farm subsidies have been of great help in aiding those developing economies. There is to sides to each story.

The American subsidies however cannot be defended given the lack of economic benefit and current financal situation.
Neu Leonstein
27-10-2005, 13:24
Note how the Aussie never dares criticising the US? :D

But it's true, if I was in power, I would send every last one of those lazy French pig farmers out into reality. If they're any good, they'll survive, otherwise they better go to university.
Delator
27-10-2005, 13:24
One thing to consider about European subsidies is that the Western European country-side faces a population decline. Some of the support for the subsidies comes from a wish to maintain the country side in its current state and stop the wilderness from taking over once again.

In Eastern Europe farm subsidies have been of great help in aiding those developing economies. There is to sides to each story.

The American subsidies however cannot be defended given the lack of economic benefit and current financal situation.

FRANCE recieves that lions share of those agricutural subsidies, and I remember there was quite a row about extending those subsidies when Britain expected them to expire, only to see them extended.

Wilderness??? We're aging too...if you encouraged immigration, maybe you wouldn't have a population decline problem. Then again, European countries have been notoriously poor at integrating immigrant populations anyways.

Besides...what's wrong with a little wilderness? Establish a national park system or something...doesn't take THAT much money.

Basically, your saying it's OK for Europe to do it, but not the U.S. :rolleyes:

NEITHER has the right to pay it's animals more than 3rd world farmers earn with their crops.
Eutrusca
27-10-2005, 13:26
One thing to consider about European subsidies is that the Western European country-side faces a population decline. Some of the support for the subsidies comes from a wish to maintain the country side in its current state and stop the wilderness from taking over once again.

In Eastern Europe farm subsidies have been of great help in aiding those developing economies. There is to sides to each story.

The American subsidies however cannot be defended given the lack of economic benefit and current financal situation.
American farmers need subsidies to preserve the frew remaining picturesque family farms, and keep the wilderness from taking over once again. ( See? I can rationalize things away too. ) :D
Righteous Munchee-Love
27-10-2005, 13:27
Yep, those evil, imperialistic European sons of bastards! And they won´t follow our advise, even if our WTO tells them! They cheat!
:rolleyes:
Amestria
27-10-2005, 13:30
Wilderness??? We're aging too...if you encouraged immigration, maybe you wouldn't have a population decline problem. Then again, European countries have been notoriously poor at integrating immigrant populations anyways.

Besides...what's wrong with a little wilderness? Establish a national park system or something...doesn't take THAT much money.


The "wilderness" would be take centuries to develop back into its previous pristine form. In the mean time shrubs and small trees will spread about making an environmental mess. A whole ecosystem which has existed around carefully tilled farmland and rural human communities for over a thousand years will be upset. I suggest you do a little more reading on the issue before making such grand statements.
NERVUN
27-10-2005, 13:36
*shrugs* No one has a leg to stand on in this regard, a point that the author of this article almost lost in his rush to bash Europe some (Why, I don't know). All the free money for owning a chicken needs to stop, no matter which country you're in.
Non Aligned States
27-10-2005, 13:53
I'd like to see two things really.

1: Whether the percentage cut proposed by the American rep actually makes it an equal cut dollar wise to the farmers. If it gives Americans the advantage again in terms of cash handouts, no point.

2: What level and manner of opposition has the US administration given towards local subsidies and handouts? I hardly hear a thing about that from the constant big business rhetoric being thrown about.
Vittos Ordination
27-10-2005, 14:11
Where did this article come from? The author destroys a good point by losing his objectivity. At least that is what it looks like to me.
Laenis
27-10-2005, 14:35
Where did this article come from? The author destroys a good point by losing his objectivity. At least that is what it looks like to me.

Agreed. I personally hate farm subsidies, and especially hate the fact we have to pay far more for French farm subsidies than our own because the overly nationalistic French believe their country to be "more beautiful" than anywhere else, thus more deserving of preservation money.

Yet the author of this piece's attitude seems to be "Yes, well, America *might* be at fault...a rare thing...but Europe is far worse - damn sub human Europeans!"
H N Fiddlebottoms VIII
27-10-2005, 17:32
I'm against all subsidies, but I think that the stupidest form is the government program that pays people not to grow things. At least subsidising people per animal is paying for something.
On the other hand, it is European internal politics, and so, as an American, I can admit that it is none of my business rather than demanding that I gain control.