Free Trade & Africa Neoclassical Essay

PAGES
8
WORDS
2465
Cite

This is why governments protect their food supplies -- food markets might behave as any other consumer good but in the sense that society as a whole benefits from avoiding famine and the markets cannot guarantee this avoidance, food also functions as a public good. Public goods will always be subject to considerable regulation - even when competition is introduced and encouraged, it will be met with controls by any non-corrupt government to ensure its ongoing supply. Thus, food will never truly be subject to free trade, and any attempt to impose free trade on the world's food system will inevitably result in moments of disequilibrium and the attendant famine. An Outcomes-Based Approach

When food markets fail, starvation often results (Diouf, 1989). Neoclassical trade theory views poverty reduction as an a priori outcome of increasing trade and thereby increasing wealth. Yet if poverty reduction is the ultimate objective of the global trading system, it should be defined and understood as such, rather than merely implied (Palley, 2006). While free trade may increase wealth, for this to translate into global food security requires that a number of other conditions also be met (Kripke & Mittal, 2007). The creation of wealth is one issue, the distribution of wealth is another altogether. In agriculture, landowners can create wealth and subsequently fail to distribute that wealth to the farmers who work the land -- this practice may have largely disappeared in the West but it remains common in the developing world. Indeed, Mittal (2007) argues that the current system of farm subsidies in the U.S. perpetuates a similar situation to the advantage of multinational agriculture firms and to the detriment of small family farmers. Free trade in agriculture fails to address this issue.

Africa in particular has seen poor outcomes with respect to food and free trade. This owes to a number of factors beyond free trade, but which represent strong influencers on the ability of free trade to address food supply problems on the continent. These include desertification, corruption, conflict and population growth. Africa's food production capabilities are diminishing precisely at a time when local demand is increasing (Feffer, 2007; United Nations, 2007). Dossani (2008) points out that the development of a successful agricultural sector is often predicated on huge landowners or massive subsidies, neither of which is present in much of Africa. It should also be noted that highly productive land and moderate population growth are also predictors of successful agricultural development.

With the correct policies in place, Africa can build its agricultural sector and achieve food self-sufficiency, as the continent has not achieved its agricultural potential (Thompson, 2007). What is required is a stronger push for food sovereignty. African nations must build their agricultural capabilities in the same that Western nations did in the past, by taking strong control over their assets. This approach does require competent governance, as corrupt politicians will act rationally by funneling outputs to themselves if left unchecked. Another component utilized by the West,...

...

At present, this is roughly 4% of budgets, where in Asia it was 11-14% during that region's "green revolution" (Fresh Plaza, 2007).
Conclusion

There is little evidence to support free trade as a means to promote agricultural development in Africa. Free trade has largely failed to promote agriculture on the continent, mainly because of neoclassical trade theory is a poor fit for agriculture. Food security is a public good, which means that few governments are willing to engage in truly free trade in agricultural goods. Africa also faces several other structural problems that prevent either the development of agriculture or that prevent adequate distribution of food and wealth generated from agricultural activity. In the West, agriculture was developed with the aid of subsidies and other protections. The same should be true of Africa. The continent should be treated with an outcomes-based approach. Free trade is not such an approach, and simply assumes that increasing trade will result in food security. The truth is that free trade has failed to develop agriculture in Africa, or to alleviate poverty in the region. Free trade does not help agricultural development in Africa, and therefore should be replaced with a system that does work. This system will focus more on wealth distribution, the introduction of democratic government and the protection of agricultural industries, through subsidies and tariffs, in order that farmers are adequately incentivized to increase production.

Works Cited:

Diouf, J. (1989). The challenges of agricultural development in Africa. Sir John Crawford Memorial Lecture. In possession of the author.

Murphy, S. (2009). Free trade in agriculture: A bad idea whose time is done. Monthly Review. In possession of the author.

Feffer, J. (2008). Destroying African agriculture. FPIF. In possession of the author.

Kripke, G. (2007). Trade can play a role in agricultural development. FPIF. In possession of the author.

Palley, T. (2006). Thinking outside the box about trade, development and poverty reduction. FPIF. In possession of the author.

Mittal, A. (2007). Free trade doesn't help agriculture. FPIF. In possession of the author.

Khor, M. (2005). The commodities crisis and the global trade in agriculture: problems and proposals. Third World Network. In possession of the author.

Kripke, G. & Mittal, A. (2007). Food and trade: Dialogue. FPIF. In possession of the author.

United Nations. (2007). Agriculture and development in Africa. Encyclopedia of Earth. Retrieved October 20, 2010 from http://www.eoearth.org/article/Agriculture_and_development_in_Africa

Dossani, S. (2008). Africa's unnatural disaster. FPIF. In possession of the author.

Thompson, C. (2007). Africa: Green revolution or rainbow evolution? FPIF. In possession of the author.

Fresh Plaza. (2007). Africa: Agriculture for development. Fresh Plaza. Retrieved October 20, 2010 from http://www.freshplaza.com/news_detail.asp?id=9891

Sources Used in Documents:

Works Cited:

Diouf, J. (1989). The challenges of agricultural development in Africa. Sir John Crawford Memorial Lecture. In possession of the author.

Murphy, S. (2009). Free trade in agriculture: A bad idea whose time is done. Monthly Review. In possession of the author.

Feffer, J. (2008). Destroying African agriculture. FPIF. In possession of the author.

Kripke, G. (2007). Trade can play a role in agricultural development. FPIF. In possession of the author.
United Nations. (2007). Agriculture and development in Africa. Encyclopedia of Earth. Retrieved October 20, 2010 from http://www.eoearth.org/article/Agriculture_and_development_in_Africa
Fresh Plaza. (2007). Africa: Agriculture for development. Fresh Plaza. Retrieved October 20, 2010 from http://www.freshplaza.com/news_detail.asp?id=9891


Cite this Document:

"Free Trade & Africa Neoclassical" (2010, October 20) Retrieved April 19, 2024, from
https://www.paperdue.com/essay/free-trade-amp-africa-neoclassical-7576

"Free Trade & Africa Neoclassical" 20 October 2010. Web.19 April. 2024. <
https://www.paperdue.com/essay/free-trade-amp-africa-neoclassical-7576>

"Free Trade & Africa Neoclassical", 20 October 2010, Accessed.19 April. 2024,
https://www.paperdue.com/essay/free-trade-amp-africa-neoclassical-7576

Related Documents

The level of industrialization of the SEA countries also varies largely but this can be attributed to the difference in the size of the domestic market of each country or region and their overall level of development on the economic front. Singapore and Indonesia have benefitted largely from the creation of the ASEAN since these countries are the larger of the SEA countries. Malaysia has also benefitted as a

Free Will Commentary: Soft Determinism and Hard Determinism and the Application of Morality Free Will & Hard Determinism Free will is a concept that holds that all individuals are free to make their own choices about their lives including their own health care, career pursuit, religious and moral choices. Within the realm of the discussion on free will is a concept known as hard determinism, which holds that if an action is

Trade Liberalization
PAGES 8 WORDS 2732

Trade Liberalization In basic terms, trade liberalization has got to do with bringing down the various trade limitations existing between countries. It is important to note that in an attempt to protect their domestic industries, many countries from across the world have in the past erected numerous protectionist measures including but not limited to tariffs and quotas. This has amongst other things had the effect of stifling international trade. This text

Trade Between China and the United States This paper discusses some theories about international trade, and why countries trade with one another. The first trade theory that warrants discussion is specialization, something that Adam Smith touched on. He used the analogy of specific professional to illustrate this theory -- nations do what they are best at. A quick look at the relationship between the U.S. And China illustrates this quite well.

Lesson Plan Amp; Reflection I didn't know what state you are in so was unable to do state/district standards! Lesson Plan Age/Grade Range; Developmental Level(s): 7-8/2nd Grade; Below grade level Anticipated Lesson Duration: 45 Minutes Lesson Foundations Pre-assessment (including cognitive and noncognitive measures): All students are reading below grade level (5-7 months) as measured by standardized assessments and teacher observation Curricular Focus, Theme, or Subject Area: Reading: Fluency, word recognition, and comprehension State/District Standards: Learning Objectives: Students will develop

Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands