(deadline for these answers: 4 February, 2014)
U.S., European Subsidies Undercut African Farmers pp 6 – 8
1. Why are African governments complaining about U.S and European agricultural subsidies?
U.S., European Subsidies Undercut African Farmers pp 6 – 8
1. Why are African governments complaining about U.S and European agricultural subsidies?
2.
Characterize the conditions for cotton production in Mozambique, South Africa,
Zimbabwe,
Malawi and Tanzania?
Malawi and Tanzania?
3. Why are
growers of cotton finding it hard to make a living from their crops?
4. What is
the connection between Western second-hand clothes and African textile
production?
production?
5. How much
influence do African nations wield over the flow of global trade?
6. Discuss
the advantages and disadvantages of agricultural subsidies.
1: The subsidies are undermining their cotton production, ruining the chance for a nice profit for the Africans. The American cotton farmers keep increasing their production “because they can” and the extra cotton is dumped onto the market at very low prices which make it hard for the African farmers to make a living due to the low prices expected on cotton.
ReplyDelete2: The conditions are good. There is plenty of rain, the roads have been re-established and there is a railroad to a harbor.
3: They cannot compete with the low prices offered by the Americans and they cannot afford to hire help and increase their production.
4: The African textile production suffers because of the second-hand clothes from the west. They are handed out for free or sold at very low prices. So of course no one wants to buy the new clothes.
5:
6: The advantages: It is easy for the farmers to start their production and to afford machines or help. It is a very nice thing to be able to get this sort of help and it probably helps to create jobs. But in terms of disadvantages: It creates an unequal market and that is often on the poor man’s expense.
Very good and covering answers.
DeleteWe have to remember that also the EU uses subsidies, it is not only the USA, but you are right that the article only gives examples from the USA.
African nations have very little influence on the global trade since 'Money talks', i.e. the power rests with the USA, the EU and the WTO (World Trade Organization). Often there are serious demonstrations when the WTO has meetings since this organization is in favour free trade (not fair trade).