Free trade is the long-term answer to solving hunger

By Anthony Batty | 15 August 2005

Yesterday there was an interesting article in The Observer discussing the current food situation in the world. It talks about many issues, one of which is that it is not only the amount of calories consumed that is important. Children when growing need protein, vitamins and minerals. Without these, their growth can be stunted both physically and mentally. The article explains that:

in most sub-Saharan countries and much of poorer America and Asia the protein and oils part of the diet is around 20 per cent - not the 40 or 50 per cent it ought to be.

It also discusses the devastation wrought by the developed world's agricultural subsidies, describing the EU sugar regime as "mind-boggling madness" and pointing out:

the average EU bovine earns more in government handouts than the average African farmer gets through honest toil. Adding to the injury, that cow's excess milk is then dumped abroad - an operation the EU also subsidises. As a result, small dairy farmers in countries as far apart as Jamaica and India have been put out of business.

Trade is also mentioned as a solution, stating that:

Some of the most spectacular changes for the good during the last few decades have come about in countries who opened up their economies to the outside world. China - home still to more malnourished children than any other country - saw a 49 per cent drop in underweight infants in the 1990s. Mexico, which signed up to the North American Free Trade Agreement (NAFTA) had a 46 per cent reduction.

China, of course, has engaged in a massive trade-and-investment liberalisation programme over the past decade - the biggest the world has ever seen - and today enjoys a 9.1% economic growth rate. However, for the maximum benefit to be gained for the developing countries, the rich countries need to end their tariffs and subsidies which distort trade amd disadvantage those who produce at lowest cost.