September 27
2004
Aid like this is fatal (The Times)

Do you want to help to kill an African? It’s very easy. Just sign Christian Aid’s petition against free trade.

According to the charity’s current campaign: “Millions of farmers in poorer nations are being gradually ruined by free trade.” As evidence for this, it cites “the onion farmers of Senegal. With free trade forced on them, they’re unable to sell their produce because their local markets are flooded with onions imported from Europe.”

That statement is true, apart from one detail: it is not a description of free trade but of its opposite, protectionism.

The EU foodstuffs market is warped by the subsidies of the common agricultural policy (CAP). When EU farmers export, they sell products which would not have been grown without subsidy. The EU spends €2.7 billion a year paying farmers to grow sugar beet, for example, while it imposes high tariff barriers against sugar imports from the developing world.

The CAP generates immense surpluses that cannot be sold within the EU. Much of these are exported at low prices that undercut those charged by the developing world’s unsubsidised producers. And when they attempt to export to the EU, their access is blocked by trade barriers. The EU’s agricultural tariffs are as high as 250 per cent. Free trade is the solution, not the problem.

According to Oxfam, if Africa could increase its share of world trade by just 1 per cent, it would earn an additional £49 billion a year — enough to lift 128 million people out of extreme poverty. That will happen only if trade barriers are lifted.

There are two possible explanations for Christian Aid’s misguided campaign. One is that those behind it are so stupid that they simply do not know that free trade involves abolishing subsidies, pulling down trade barriers.

The other is that they know that full well, but have an anti-globalisation, anti-prosperity agenda that they are attempting to disguise with an apparent but misleading concern for the developing world.

A recent paper by the Centre for the New Europe calculated that one person dies every 13 seconds somewhere in the world — mainly in Africa — because of the EU’s protectionism. The Christian Aid campaign’s stated aim would make that figure even worse.


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Comments

I aree with you wholeheartedly.. but.. given that the CAP exists and, if the French have their way, will do so for some time to come, could it possibly be argued that some form of protection is legitimate as a defence against such hostile action?

Stated by: Rob on September 27, 2004 9:07 AM

Excellent piece, Stephen. I saw the advert for the first time on Saturday and could not believe its stupidity.

Stated by: Helen Disney on September 27, 2004 9:42 AM

Spot on. None but the most cynical would deny the good intentions of Christian Aid and other such organisations in wanting to alleviate such dreadful and horrific poverty, but when these sentiments come up against monoithic ideologies of anti-westernism and anti-globalisation, bankrupt ideology triumphs, precluding any real and practical change.

Stated by: Jon Hyman on September 27, 2004 10:41 AM

I looked up that paper by the Centre for the New Europe, it seems to be EU TRADE BARRIERS KILL By Stephen Pollard, Alberto Mingardi, Cecile Philippe and Dr. Sean Gabb (pdf document). It must have taken you a lot of effort to dig that one out, Stephen.

Stated by: Backword Dave on September 27, 2004 10:53 AM

I agree that Christian Aid have got their message totally wrong, since what we have now isn't free trade. That doesn't mean, though, that completely free trade would be good for development, even if the eradication of protectionism in OECD countries would.

Secondly, has Stephen actually read the Centre for the New Europe paper which contains that eye-catching claim about one person dying every 13 seconds "because of the EU’s protectionism"? Because I have, and it's a very shaky claim indeed. It rests on the assumption that trade protection is the only reason why 20,000 people die every day from hunger, which is unfounded. EU trade protectionism kills, but not on that scale. It's important to get these things right rather than just going for the biggest number.

Stated by: Jim on September 27, 2004 11:27 AM

GGO have a paper out criticising Bono, Christian Aid et-al

http://www.global-growth.org/bonosmanifesto.pdf

Stated by: Paul D S on September 27, 2004 12:06 PM

For info, GGO's comments section has a debate about their paper:
http://global-growth.blogspot.com/2004/09/bonos-manifesto-u2s-bono-has-launched.html#comments

Stated by: Jim on September 27, 2004 1:20 PM

The numbers are always subject to some error, but there can be no doubt that the CAP places a huge burden on already weak economies. As poverty and premature death go hand in hand it is inescapable that this leads to unnecessary suffering and death.

Free trade in agriculture would not only strengthen African economies, but would allow diversification away from cash crops which are often bought at below their true value by state monopolies. Thus free trade strengthens the people versus their corrupt and rapacious governments.

Stated by: EU-Serf on September 27, 2004 3:54 PM

"The numbers are always subject to some error"

It's not an error, they're just fictitious. Anyone who repeats them is either ignorant of their derivation or being deliberately misleading.

"Free trade in agriculture would not only strengthen African economies"

Actually, completely free trade in agriculture would probably see Africa losing its existing shares of European markets to more efficient producers.

"would allow diversification away from cash crops"

They're already 'allowed' diversify, but they're finding it extremely difficult to do so without the protective barriers that helped UK, the US and the Asian 'tigers' do so at similar stages of development.

"Thus free trade strengthens the people versus their corrupt and rapacious governments."

An overly simplistic perspective, in my opinion.

Stated by: Jim on September 27, 2004 10:34 PM

Whilst I would agree that the 'one person dies every 13 seconds' is hard to really back up, the general point that EU protectionism kills people in the Third World is beyond reasonable dispute. Well said, Stephen.

Stated by: Perry de Havilland on September 28, 2004 12:24 AM

I'm surprised that neither Stephen or any of the commenters lining up to condemn Christian Aid has managed to address the substance of their position on trade and development, outlined here: http://www.christian-aid.org.uk/indepth/409trade/index.htm.

In fact, Stephen seems to be agreeing with their assessment of the causes of Senegal's onion problem, and is only narked at their mis-use of the phrase 'free trade'. In the report itself they explicitly say that liberalisation is useful in certain circumstances, but they explain what those circumstances are rather than simply assuming as an article of blind faith that free trade must always be good everywhere and every time.

So, since so many people here seem to be get so annoyed about empty rhetoric, what about actually getting to grips with the real arguments?

Stated by: Jim on September 28, 2004 10:41 PM

Er Jim, It was Christian Aid that chose to put out their cretin - left advert. It doesnt strike me as particularly unreasonable to argue against that rather than some obscure policy paper they havn't chosen to even mention.

BTW the link doesnt work.

Stated by: Christopher Price on September 29, 2004 7:35 AM

Er, yes it does, if you're able to copy and paste.

The advert has been used to attack Christian Aid using language ('economic idiots', etc) which suggests a deeper critique, but it seems to me that people aren't willing to actually engage with the substance. That's their perogative obviously, it's just that it means it's a superficial attack.

Stated by: Jim on September 29, 2004 8:27 AM

Er, Jim, if Christian Aid make the centrepiece of their public advertising a bare faced lie, why should they not be attacked ? EU Trade subsidies quite simply are the antithesis of free trade, and to state otherwise is a falsehood. And it is a deliberate falsehood unless you wish to claim that the advertisement was somehow published in its current form by some unfortunate accident. If you wish to dispute that, please state why you think the EU CAP system is in fact a free trade system.

Stated by: Ed Snack on October 1, 2004 11:36 AM

Ufortunately, the "free-trade" US does the same. Subsidized US cotton is wiping out small cotton growers in Mali and other African countries. Of course, the cotton-growers association donates considerably more to political powers than small, poor African farmers. It is a pity that we can't practice what we preach and let people lift themselves out of poverty.

Stated by: Wayne on October 2, 2004 6:32 AM

"why should they not be attacked?"

I've already said that the ad campaign is wrong. But it's also inconsistent with their full report on trade, and I was hoping for a grown-up debate on that. Obviously I'm looking in the wrong place.

Stated by: Jim on October 2, 2004 4:11 PM
Stated by: gwheg on March 16, 2006 1:30 PM
Stated by: Erotyka on May 2, 2006 3:59 PM

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