The way to help ourselves by helping others

By Alex Singleton | 12 December 2005

Joseph Stiglitz may not be the soundest person on globalisation but, with Andrew Charlton, he has a good article in today's London Daily Telegraph:

The rich countries that make up the OECD give more than £200billion to their farmers each year, and maintain high tariffs to keep cheaper food out.

These handouts do not even go towards protecting the livelihoods of small 'village' farmers. Instead, they flow towards giant farming corporations, which calculatingly change their crops to maximise their subsidies. In Europe, the largest 1pc of farms receive more than the smallest 40pc.

These trade policies are a lesson in incoherence. The US has a huge hole in its budget, but gives billions to farmers, who make up just 1.7pc of the population.

Gordon Brown wants to make poverty history, so he should consider this awkward fact. Rich nations give developing countries £50billion in aid each year, but cost them three times as much in protectionist trade policies.

At this week's meeting, the gathered politicians have to ask themselves one thing: why should we give poor countries aid money, and at the same time deny them the opportunity to work and trade their way out of poverty?