africa's unnatural disaster:
The World Bank's continued market fundamentalism is difficult to understand, especially in light of the fact that after more than 25 years of imposing these policies in Africa and Latin America, success stories are few and far between. Those countries that do have productive agricultural sectors (almost none of which are in Africa) either rely on huge landholders to be productive (Brazil, Argentina, Chile) or on massive subsidies (India) or both (U.S., EU). The countries that have eliminated their subsidies and privatized their grain boards, including many in Africa, are those that are doing the poorest.
(...) If one is willing to look at the events of the last 30 years without the quasi-religious belief that free markets lead to development and growth, one would undoubtedly find that the opposite is true. In his groundbreaking work Kicking Away the Ladder (2003), Ha Joon Chang documents the development of every industrialized country, showing that protectionist policies were a fundamental part of development strategy in almost every case. The process of development that emerges from this story is not maximizing comparative advantage (for if so, the U.S. would be a sparsely populated country of fur traders and fisher people) but rather shifting comparative advantage to high value goods through calculated market distortions. In the case of the U.K. and the United States, those market distortions originally came in the form of colonialism and slavery. But market distortions continue in the U.S. today in the form of agriculture and steel subsidies, not to mention the tremendous government spending on biotechnology and defense, which largely serves as a subsidy for those sectors.
(...) The report does point out that a few countries (Brazil and Chile are the examples given) have successfully used agriculture to increase growth, but in Brazil and (to a lesser extent) Chile, small farmers are all but extinct, and agriculture is big business. Given the preoccupation with small farmers and poverty alleviation in other parts of the document, the examples are odd.
(...) Since about 1970, the World Bank, other international financial institutions and the private sector have succeeded in completely transforming agriculture from a primarily local affair to a complex industrialized process. Monocropping, over-reliance on chemical pesticides and fertilizers and trans-genetic manipulation have in some cases increased yields; but these practices have not led to a significant reduction in the number of hungry people in the world. The recommendations of the Alliance for a Green Revolution in Africa and the World Bank amount to insanity - recommending more of the same and expecting better results.
(...) In the United States, Europe and elsewhere, many are beginning to understand that industrialized agriculture benefits neither those who produce nor those who consume food. In the current food crisis, more than 25 countries and the European Union have imposed tariffs, subsidies, price controls or other measures to protect consumers from the global free market. So why the double standard when it comes to Africa?
(...) For those interested in solutions, the organic and local movements aren't far off the mark. What producers and consumers in many parts of the world are beginning to understand is that the way that farmers have been growing food for millennia is more or less a good system. While there may be room for technology, (drip irrigation systems, for example) that innovation should not alter the food product nor add layers of cost. Many parts of Africa have an advantage in that they have never really lost their traditional relationships with the land. The problem has been that cheaper food from Europe and the United States is often dumped on African countries, undercutting the possibility for farmers to earn a living from their production. In the case of Africa, all that may be needed is a sensible trade policy to protect those who already grow enough food for all Africans.