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The harm done to poor countries by the CAP well outweighs any benefit to European farmers.  The CAP should be dismantled entirely, and Europe should import food from Africa rather than leaving it dependent on "aid".
by tyronen on Wed Dec 7th, 2005 at 12:57:08 PM EST
Britain (especially England) is also one of the most densely populated countries in Europe. or other countries in Europe it makes sense to subsidize agriculture in order to 1) avoid further depopulation of rural areas; 2) maintain a strategic ability to produce food domstically; 3) prevent rural land from being developed for industrial or residential uses.

The question is how these domestic policy objectives can be pursued (by those countries who choose to) without distorting the international market price of food.

In the long term we simply cannot afford to fly food around the world.

The UK never attempted land reform and instead went the route of international trade (first colonial, then "free").

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper

by Migeru (migeru at eurotrib dot com) on Wed Dec 7th, 2005 at 01:22:47 PM EST
[ Parent ]
Just where do you think CAP money goes?  Subsidized European produce is exported to poor countries and drives farmers there out of business.

The average cow in Europe receives more subsidies than the entire per capita income of most poor countries.  There is no way they can compete.

"In the long term we simply cannot afford" to grow sugar from sugar beet when sugar cane has a much higher yield.

by tyronen on Thu Dec 8th, 2005 at 01:37:01 PM EST
[ Parent ]
This is just an argument against free trade in agriculture. In particular, against forcing poor countries to open their markets to first-world produce as a precondition to getting help from the IMF or World Bank.

As for subsidizing cows... Long-life (UHT) milk is nasty, and pasteurized milk only lasts 3 or 4 days before spoiling. Dairy farmers more than 3 or 4 days away by boat from Europe should not be affected by the subsidies, except if subsidized UHT milk from Europe floods the local milk market in a poor country, which would be solved by allowing the poor countries to erect protectionistic barriers...

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper

by Migeru (migeru at eurotrib dot com) on Thu Dec 8th, 2005 at 01:44:05 PM EST
[ Parent ]
tyronen, as was covered several times at ET, Europe imports a lot from Africa (under preferential treatment treaties!), and destroying the CAP wouldn't help the Africans a bit - it would help industrial producers (who are usually big landlords) in countries like Argentine, Brazil and Australia.

Most of what you can read in the Anglo-Saxon press on the CAP is spin.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Wed Dec 7th, 2005 at 02:17:12 PM EST
[ Parent ]
Please stop using that phrase.  There is a world of difference, culturally and politically, between the UK, the US, Canada, Australia, Ireland, and New Zealand.

It's not even historically accurate - Britons today are as much descended from the Norman-French as from the Angles and Saxons of medieval times.

To me it is every bit as offensive as "frog" would be to a French person.

by tyronen on Thu Dec 8th, 2005 at 01:39:10 PM EST
[ Parent ]
43,000 google hits in English for "Anglo-Saxon model". Top 10 hits:

  • The Anglo-Saxon model of capitalism - The Adam Smith Institute
  • When we look over the attributes of the Anglo-Saxon model of capitalism...
  • Detestation of the ultraliberal Anglo-Saxon model is thought largely to explain...
  • If the Anglo-Saxon model today appears to be doing very well on a world scale...
  • Value Based Management Forum: Dutch study confirms Anglo-Saxon Anglo-Saxon model is best for economy
  • Anglo-Saxon model offers better jobs and incomes deal
  • THE ANGLO-SAXON VERSUS THE CONTINENTAL EUROPEAN CORPORATE ...
  • Is the American Model Miss World? Choosing between the Anglo-Saxon model and a European-style alternative.
  • Anglo-Saxon model
  • The anglo-saxon model: a critical view


guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
by Migeru (migeru at eurotrib dot com) on Thu Dec 8th, 2005 at 01:56:21 PM EST
[ Parent ]
Google hits do not make the term any more accurate.

There is no "Anglo-Saxon model".  You can speak of an "American model" or a "British model", but the two are very different.  The UK has universal public health care, reasonable public transportation, and paid parental leave, none of which exist in the US.  In fact, the UK is much closer to continental Europe than it is to the US.

by tyronen on Thu Dec 8th, 2005 at 02:18:19 PM EST
[ Parent ]
The term does exist, and it is used by the English language press in exactly the way DoDo did.

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
by Migeru (migeru at eurotrib dot com) on Thu Dec 8th, 2005 at 05:11:54 PM EST
[ Parent ]
Yup, and we've said that repeatedly around here as well: the Anglo-Saxon model is the bullshit free-trade model pushed by the rhetoric in the US and Britain and by the English-language business press. It's all nonsense: neither country actually implements free-trade at all. The phrase is a bit silly, but we sure as hell didn't originate it - complain to the FT if you like.
by Colman (colman at eurotrib.com) on Fri Dec 9th, 2005 at 03:09:21 AM EST
[ Parent ]
And 1,780,000 hits for "Anglo Saxon Press" which is the term DoDo used.

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
by Migeru (migeru at eurotrib dot com) on Thu Dec 8th, 2005 at 01:59:20 PM EST
[ Parent ]
Indeed. I could have said "the English-language press of English-speaking countries", but the shorter term already exists and is in use throughout the world.

(And if tyronen wants to do genetics, let's not forget the Brit-Celtic, Roman and early Viking lineages assimilated by the Angles, Friesians and Saxons; and of course much more Saxon genes are around in Germany.)

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Fri Dec 9th, 2005 at 04:55:08 AM EST
[ Parent ]
To me [using Anglo-Saxon to refer to former British Colonies] is every bit as offensive as "frog" would be to a French person.
Are you saying "Gaul" is as offensive as "frog" when referring to the French? Get a grip.

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
by Migeru (migeru at eurotrib dot com) on Fri Dec 9th, 2005 at 05:45:02 AM EST
[ Parent ]
Excuse me, could you please stop including Ireland in your reading of the phrase Anglo-Saxon? It's very offensive.
by Colman (colman at eurotrib.com) on Fri Dec 9th, 2005 at 06:23:13 AM EST
[ Parent ]
The World Bank recently brought out a study, Agricultural Trade Reform and the Doha Agenda (big pdf). The WB can hardly be suspected of sympathy for agricultural support systems. In fact, this study was brought out to argue for free trade in agricultural goods and other goods and services, in time for the ministerial talks in Hong Kong.

Yet the report says this (p 17):

Poverty could be reduced under Doha.
Under the full merchandise trade liberalization
scenario, extreme poverty--those earning no more than $1 a day--would drop by 32 million in developing countries in 2015 relative to the baseline level of 622 million, a reduction of 5 percent. The majority of the poor by 2015 are projected to be in Sub-Saharan Africa, where the reduction would be 6 percent.

Note: the full merchandise trade liberalization scenario. This means total dismantling of all agricultural tariffs, aids, export subsidies plus total free trade in other merchandise and some services. It would, according to the WB, only reduce Sub-Saharan African poverty by a small percentage.

(p 19) If only agriculture was reformed (Doha scenario 1), there would be much less poverty
alleviation globally and none at all in Sub-Saharan Africa. This shows the importance for poverty of including manufactured products in the Doha negotiations.

Total free trade in agricultural goods will not alleviate poverty in Sub-Saharan Africa. This is from the World Bank, in a report the main intent of which is to support the idea of free trade.

I'm not in favour of dumping agricultural surplusses on the world market. I'm all in favour of real, sustainable development for Africa. But the notion that all we have to do is dismantle rich countries' agricultural support systems (I'm assuming you included that of the US too, when you said "dismantle the CAP"), for Africa to produce all the food we need, is so over-simplified it's laughable. It takes no account of climatic differences (can Africa produce the same food we now produce?), or, as Migeru points out, of the externalities involved in shifting the huge tonnage of foodstuffs needed by Europe and North America around the world.

Above all, it doesn't take into account the fact that Africa is unfortunately not geared up at all to take advantage of agricultural free trade. It is countries like Brazil, Argentina, Thailand, India, and other Cairns Group countries that will.

by afew (afew(a in a circle)eurotrib_dot_com) on Wed Dec 7th, 2005 at 02:39:51 PM EST
[ Parent ]
Try telling those thirty-two million people it's ok if they stay in poverty because they're only a "small percentage".

The actual number (and percentage) is even greater because it is relative to the 2005 population, not the 2015.  If you want "small", try the percentage of the European (and American, and Japanese) that actually works in agriculture and compare it to the corresponding percentage in Africa.

The "Doha scenario 1" you cite refers to a one-third cut in subsidies - see the table at the bottom of page 14.  None of the eight Doha scenarios envisage the complete elimination of subsidies; that is an additional one outlined by the research team.

Did you miss the table on page 12 of the report?  It showed that 63 percent of gains to developing countries from trade liberalization are from agriculture.  Right below that, you can't miss it, it says flatly, "Agriculture is where cuts are needed most".

There seems to be an attitude here that CAP reform is some kind of right-wing plot by so-called "Anglo-Saxon" countries.  This is nonsense.  The US and Canada have resisted cutting subsidies every bit as much as the EU and Japan have.

On this issue, the EU is on the same side as the Bush administration - the wrong one.  Virtually all NGOs working in the Third World have called for subsidy reform - see Oxfam, for example.  The Trade Justice Movement calls for the EU to abolish export subsidies.  So have African governments - see this article.  The Guardian, the UK's only liberal broadsheet, maintains a blog on the subject.

As to the myth that subsidized exports from the EU benefit food-importing countries, see Devinder Sharma's rebuttal here.

by tyronen on Thu Dec 8th, 2005 at 02:12:46 PM EST
[ Parent ]
I'm sorry if I appeared insensitive in speaking of a "small percentage". My point was simply to show that the gains from sweeping free trade reform were far slighter -- for those the most in need -- than some rhetoric on the subject implies. Your own comment at the top of the thread, to which I was replying, was extremely sweeping and simplistic, and most certainly implied that the total dismantling of the CAP would solve a great many of Africa's problems. May I ask you if you really believe that liberalization is the way to bring about progress for the poor in Africa and other continents? You really think free trade is the answer?

On the World Bank report: I don't want to be tedious, but there are a couple of things I'd like to rectify or nuance in what you say.

  • The "32 million" you quote are in all developing countries, not just Sub-Saharan Africa. Quote: "The majority of the poor by 2015 are projected to be in Sub-Saharan Africa, where the reduction [in poverty] would be 6 percent".

  • The "Doha scenario 1" implies elimination of agricultural export subsidies plus (for the CAP) a reduction of 18% in domestic farm and industry aid (already programmed) plus "the applied global average tariff on agricultural products is cut by roughly one-third, with larger cuts in developing economies, smaller in developing economies, and zero in least developed countries". In other words, one-third is an average, but the EU would be required to lower its tariffs by considerably more.

  • The table on p12 speaks of all developing countries, not just the poorest. Your comment above spoke of Africa. There is a middling rank of emerging agricultural exporting countries that stands to gain from liberalization, as I pointed out above.

  • "Agriculture is where cuts are needed most" same comment. What was most important was where the report dealt with the poorest, not with a lumped-in "developing countries" category.

My main point, anyway, was to say that even the World Bank was not very affirmative about alleviating African poverty even in the most favourable to free trade of its scenarios.

I then have a job understanding what the rest of your remarks have to do with anything I said. If the remark

There seems to be an attitude here that CAP reform is some kind of right-wing plot by so-called "Anglo-Saxon" countries.

is meant to apply to me, I'm at a loss. People here have repeatedly said (and I'm among them) that we want to see CAP reform. I want to see phasing out of export subsidies and of subsidies to the agri-food industry, and capping of direct farm subsidies with redistribution in favour of small farms. I'm pretty sure most people who comment here would agree.

As for "there seems to be an attitude", permit me to say that, if there seems to be an attitude anywhere, it's in the hectoring tone of your comments. As for "Anglo-Saxon", it's a term I avoid because it's inexact, but trying to make out it's as pejorative as "Frog" seems to me to be stretching it more than a bit.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Dec 8th, 2005 at 04:42:23 PM EST
[ Parent ]
Thanks for delivering this spot-on and measured reply to him/her. I didn't have the nerve yesterday to reply to this stuff that as you say has not much to do with anything we said, yet was delivered in such a hectoring tone.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Fri Dec 9th, 2005 at 04:49:38 AM EST
[ Parent ]

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