I found a recent article on the BBC News website that discussed the impact foreign aid (specifically from the U.S.) has had on Haiti’s economy. Haiti is one of the world’s poorest countries and the “farmers in Haiti have become the accidental victims of U.S. imports and international aid.”
The valleys of Haiti used to produce enough rice to feed the entire country but in the 1980s, Haiti was forced to drop import tariffs in return for loans from the IMF and World Bank. Now the country can’t compete with imported, domestically subsidized food (including rice) from the U.S. Because of the cheap imports, Haitian-grown produce is out of competition and its agriculture industry has collapsed. Unfortunately, agriculture provided the primary source of employment in the past.
Agricultural subsidies have been the subject of much debate over the years and subsidies given to farmers in larger, richer, developed countries have ripple effects on poorer, developing nations. I think that developed nations like the U.S. need to consider the impact that their agriculture subsidies have on the rest of the world and try to strike a sort of balance. Particularly in the area of farming, I see a need for real “free trade” so everyone can fairly compete in the world market. So many developing nations have the means and desire to farm in order to make a living, especially since success in this area can lead to a higher standard of living over time (via increased investments, developments in technology, etc.), but they won’t be able to if their goods can’t compete.
http://news.bbc.co.uk/2/hi/programmes/cooking_in_the_danger_zone/7302535.stm
No comments:
Post a Comment