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Robin Hood in Reverse
Not only does the 2002 farm bill act as a welfare program for agribusiness, with U.S. taxpayers footing the bill, it also robs the world's poor. Wielding the World Bank, the International Monetary Fund (IMF), and international trade agreements, the U.S. is opening up foreign markets for exports by forcing poor countries to remove subsidies and lower tariffs. However, the U.S. shields itself from foreign competition by increasing its subsidies and maintaining tariffs. These measures have allowed the U.S. to dump its farm surplus on world markets. For example, the U.S. exports corn at prices 20 percent below the cost of production, and wheat at 46 percent below cost.(14) This has resulted in Mexican corn farmers being put out of business. More than 80 percent of Mexico's extreme poor live in rural areas, and more than 2 million are corn farmers. There is no way they can compete with subsidized American agribusiness.
A dramatic increase in U.S. agricultural subsidies will further jeopardize the livelihoods of Third World farmers. The new bill will stimulate an even greater domestic farm surplus, which the U.S. will then dump at prices even farther below the cost on world markets, depressing the global commodity prices of crops that developing countries count on while wiping out even more poor farmers. The result is a reverse Robin Hood effect-robbing the world's poor to enrich American agribusiness.
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Even the World Bank President, James Wolfensohn, acknowledges that "these subsidies are crippling Africa's chance to export its way out of poverty."(17) Mark Malloch Brown, the head of the United Nations Development Program, estimates that U.S. farm subsidies cost poor countries about $50 billion a year in lost agricultural exports. By coincidence, that's about the same as the total of rich countries' aid to poor countries.
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These double standards in the administration that professes allegiance to market economics and fiscal probity have unleashed a wave of indignation among countries whose development prospects largely depend on farm exports. These countries are appealing to the WTO for sanctions, threatening retaliation, and charging the U.S. with hypocrisy in taking a protectionist turn even as it urges other nations to open up further. The U.S. Trade Representative, Robert Zoellick, has acknowledged that "we deserve the criticism we have received."(19)
More:
http://www.foodfirst.org/node/52~~~~~~~~~~~~~~~~Why Mexico's Small Corn Farmers Go Hungry
By TINA ROSENBERG
MEXICO CITY
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The problems of rural Mexicans are echoed around the world as countries lower their import barriers, required by free trade treaties and the rules of the World Trade Organization. When markets are open, agricultural products flood in from wealthy nations, which subsidize agriculture and allow agribusiness to export crops cheaply. European farmers get 35 percent of their income in government subsidies, American farmers 20 percent. American subsidies are at record levels, and last year, Washington passed a farm bill that included a $40 billion increase in subsidies to large grain and cotton farmers.
It seems paradoxical to argue that cheap food hurts poor people. But three-quarters of the world's poor are rural. When subsidized imports undercut their products, they starve. Agricultural subsidies, which rob developing countries of the ability to export crops, have become the most important dispute at the W.T.O.
Wealthy countries do far more harm to poor nations with these subsidies than they do good with foreign aid.
While such subsidies have been deadly for the 18 million Mexicans who live on small farms "nearly a fifth of the country". Mexico's near-complete neglect of the countryside is at fault, too. Mexican officials say openly that they long ago concluded that small agriculture was inefficient, and that the solution for farmers was to find other work. "
The government's solution for the problems of the countryside is to get campesinos to stop being campesinos," says Victor Suarez, a leader of a coalition of small farmers.
But the government's determination not to invest in losers is a self-fulfilling prophecy. The small farmers I met in their fields in Puebla want to stop growing corn and move into fruit or organic vegetables. Two years ago Mr. Hernandez, who works with a farming cooperative, brought in thousands of peach plants. But only a few farmers could buy them. Farm credit essentially does not exist in Mexico, as the government closed the rural bank, and other bankers do not want to lend to small farmers. "We are trying to get people to rethink and understand that the traditional doesn't work," says Mr. Hernandez. "But the lack of capital is deadly."
The government does subsidize producers, at absurdly small levels compared with subsidies in the United States. Corn growers get about $30 an acre. Small programs exist to provide technical help and fertilizer to small producers, but most farmers I met hadn't even heard of them.
Mexico should be helping its corn farmers increase their productivity or move into new crops" especially since few new jobs have been created that could absorb these farmers. Mexicans fleeing the countryside are flocking to Houston and swelling Mexico's cities, already congested with the poor and unemployed. If Washington wants to reduce Mexico's immigration to the United States, ending subsidies for agribusiness would be far more effective than beefing up the border patrol.
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http://query.nytimes.com/gst/fullpage.html?res=9D02E3DD1F3CF930A35750C0A9659C8B63~~~~~~~~~~~~~~Mexican Corn Farmers Face Crisis, Anthropologist Says
April 27, 2006
Little evidence exists that Mexico is losing its rich tradition of growing corn varieties to the threat of globalization and transgenic hybrids, but a UC Davis agricultural anthropologist is seeing a crisis for the small farmer.
"Overall, the market for Mexican-grown maize or corn for tortillas continues to be robust," says Stephen Brush, a UC Davis professor of community development. "But low prices and competition with U.S. imports have made it impossible for Mexican farmers to support themselves."
As a result, farmers are leaving their wives in rural areas to tend what has been traditionally the male task of fieldwork while they seek employment elsewhere. The men, who have joined Mexico's migrant stream to areas where economies are stronger, sometimes time their trips home during the planting and harvest seasons.
More:
http://www.news.ucdavis.edu/search/news_detail.lasso?id=7724