Friday, July 30, 2004
"U.S. Will Cut Farm Subsidies in Trade Deal"
Now that is the kind of headline I like to see. Looks like there is some good progress happening at the WTO negotiations. Farm Subsidies and other destorting economic practices in the developed world such as export subsidies are truly injust and need to be eliminated to help the developing world achieve economic growth and reduce poverty and hunger. For example, millions of West Africans suffer because of the distortedly low price of cotten caused by billions of dollars of subsidies to America's wealthy cotten farmers.
On a related note, Peru is in the final stages of negotiating a free trade agreement with the US. It is interesting how popular free trade is here in Peru and in the developing world as a whole. The anti-globalizer, anti-free trade crowd typically comes from the developed world (i.e. Seattle and SanFrancisco), not poorer countries such as Peru. I have yet to read a single editorial here in Peru against the free trade agreement. Almost all the pundits here are for it and the economic growth it would bring.
If you are interested in stuff like this, I recommend reading In Defense of Globalization by Jagdish Bhagwati, a very influential economist. It's a really good book.