October 17, 2005
Commentary – Third World Policies
:Third World nations lag behind the First world in almost every measure leading to much European and American guilt and aid. But two measures that were proposed this week in the United States that could lead to actual improvement and the Third World helping itself seems to have little chance of passing.
First, the United States proposed reducing farm subsidies in this nation by sixty-percent to jump-start the so-called Doha Round of World Trade Negotiations. The Doha Round was started because Third World nations have criticized subsidies of industrial nations’ farm products that reduce the prices that Third World countries can receive on the only products they can sell on the international market. While the European Union responded with a proposal of their own that appears to be less generous than the American proposal, Japan completely balked at the proposal.
Meanwhile, the U.S. Congress appears very unlikely to agree to a Bush proposal that would allow food aid for African nations to be purchased in other African nations, instead of shipping American crops. By purchasing African crops for food aid, the U.S. would join Europe in using aid to accomplish two goals: 1) feed the hungry and 2) fund market development in other African nations. But this proposal means that farmers that are supportive of aid because the food is purchased from American farmers would not be less supportive of aid in the future.
While both proposals have significant political opposition, they actually make sense for both international development and in saving money for American tax payers. By cutting subsidies, America would save billions of tax dollars while also lowering food prices for consumers, while leveling the playing field for poor farmers around the globe. By purchasing crops in Africa for food aid, American tax payers would be charged less for aid, while allowing African nations to build their own economy. In both cases, politicians should accept some political cost and accept proposals that will actually do the majority of the world population some good.
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