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through trade?
How can Africa’s
agriculture boost development through trade?
Anforme
Limited, February 22, 2011
Why has
Africa become a net food importer? This was the
question raised by Pascal Lamy, director general of
the World Trade Organisation, at a conference
entitled “Harnessing Agriculture for Development
through Trade” yesterday. This conference was based
on a publication produced by the CUTS International
resource centre.
Lamy
pointed out that Africa became a net-food importer
in the 1980s, when the prices of its key commodity
exports tumbled and its agriculture slowed down. It
now has a food trade deficit of around $20 billion.
The main
goal to be addressed he suggested, was not the
question about self-sufficiency, but how African
agriculture can become more efficient and
competitive. He noted that the CUTS publication
shows that African agriculture has been shackled by,
firstly, colonial patterns of trade that have locked
Africa into commodity exports. And, secondly,
macroeconomic and trade policies aimed at
import-substitution and food self-sufficiency, which
have achieved the exact opposite of their goal. In
taxing agriculture, and shielding it from
international competition, these policies have made
African agriculture less competitive.
He noted
that stagnant agriculture, combined with a
population growth rate in the continent that is
higher than the world average, is obviously leading
to food insecurity. In Gabon, for example, food
expenditure accounts for about 50% of total
expenditure.
He added
that contrary to what some have been saying about
international trade somehow being responsible for
the plight of African agriculture, it is
import-substitution policies and lack of investment
in agriculture which are the principal culprits.
In his
view, it is the Doha trade round which can made a
‘modest’ contribution to helping lift Africa’s
agriculture. This is because it will give
least-developed countries duty-free, quota-free,
access to export markets. It will deal with the
colonial patterns of trade by reducing the
phenomenon of tariff escalation. It will also reduce
the subsidies of the rich world that have made it
difficult for Africa to compete on international
markets, and flooded African markets with cheap
imports.
Whilst the
world needs cheaper food, it needs that food be
produced under conditions of fair competition. In
short, he argues, the Doha Round will help level the
playing field for Africa.
To read
the whole speech
click here.
The news
item can also be viewed at:
http://www.anforme.co.uk/
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