The Problem with Subsidies

Meet Ibrahima Coulibaly from Mali and James Macha from the U.S. Both are cotton farmers, but with vastly different experiences. The American farming subsidies that support James have a negative impact on farmers like Ibrahima, who are trying to climb out of poverty. The result is communities in poor countries face conditions that make them more vulnerable to crime, conflict, or even terrorism. How can rich and poor countries work together so that there is a level playing field?

Category:

News & Politics

Tags:

• center
• global development matters
• poverty
• take action
• nonprofit
• policy
• subsidies
• cotton
• farm
• trade
• market

[hdpataxia]

The mention of picking up weapons and following warlords for food is accurate and particularly sad given the U.S.'s role in providing food aid to local despots. If more effort were taken to raise agro-profit in sub-Saharan Africa, while simultaneously reducing international food aid, the global hand-wringers might witness positive results for their efforts instead of a continuing culture of dependency.

[galbraith1988]

Fireweed would need to cite some sources to make those claims. I agree that eliminating subsidies is not a magic panacea for Africa's ills, but it is a necessary first step if Africa is to become competitive in international markets.

[FireweedFarm]

Excellent values! True in principle, almost always. False diagnosis & cure. True, US subsidies are unfair. False claim: that eliminating subsidies would raise world farm prices. Proof: 1 Farm prices lack price responsiveness on both supply & demand sides, (economic fact) 2 Historically price floors/(cf nffc.net) were needed (& there were no subsidies) 3 Econometric Studies agree, only 3-5% help from Subsidy Elim/etc 4, 3 countries. Reasons: google "Farm Bill Primer" "Brad Wilson" "zspace"

[kudzu79]

i think he needs to look at his own government for his problems not the U.S.

[1ironaut]

to bdodson89- i feel like that attitude of i need to get mine before others get theres is a dangerous one. we are all connected and the oppression of others affects us here. i do want our country to survive but i don't want to be responsible for the literal starvation of others in the name of propping up large agricultural businesses.

keep helping small farmers- sure. but the majority of the subsidies to people who are wealthy already and dooms human beings who have nearly nothing.

[Akathist]

The economics behind subsidies is intricate and complicated - hinging on developed nations' corrupt electoral systems (see Japan's rice farmer import quotas; Bush's proposed steel tariffs in the early half of the decade). I, personally, blame the EU region for the current world agro scandal: their rejection of the Quad + America's proposal to eliminate global subsidies at the Uruguay Round (and now at Doha) was the death of the third world's hopes.

[bdodson89]

I'm pretty sure we need to worry about our own country which is trillions of dollars in debt and not others. If it weren't for government subsidies we would not have the scale of agriculture production that we have, which in turn will greatly effect our food supply. As of right now there is only a 30 day world wide food reserve.

[schlorin]

Hey Econ 104! 4pm stream

STEWART MORRIN....(baby faced, blonde, with slight kina...everyone look around for him, dont stop till youv found him)

Stewart, how much does this lecture theatre weigh?

Steve Agnew - YOU ARE GOD

[mitchnewzealand]

Steve Agnew is my hero

[mpd613]

You are an idiot. The farmer in this video is an idiot. Grain can be grown for a fraction of what it takes to grow cotton. Subsidies have always hindered the american farmer. If our government would stop teaching every country in the world to farm, there would be no competition. Hodgie in the video needs to be growing corn. If he can plant cotton, he could surely plant corn.