Ten years ago there are only 300 telephone lines, because of free trade, today over 10 million people use cellphones in Kenya. Some opponents of free trade believes that the best way to reduce poverty in Africa is through foreign aid from more developed countries and capitalism only make people poorer. Is that really the case?? Does Free Trade Exploit the Poor? ?Join June Arrunga and Johann Norberg join John to discuss whether free trade harms or helps poor people in Third World nations.
For decades, earnings from farming in many developing countries, including in sub-Saharan Africa, have been depressed by a pro-urban bias in own-country policies, as well as by governments of richer countries favouring their farmers with import barriers and subsidies. Both sets of policies reduced global economic welfare and agricultural trade, and almost certainly added to global inequality and poverty and to food insecurity in many low-income countries.
Progress has been made over the past three decades in reducing the trend levels of agricultural protection in high-income countries and of agricultural disincentives in African and other developing countries. However, there is a propensity for governments to insulate their domestic food market from fluctuations in international prices, and that has not waned. That action amplifies international food price fluctuations, yet when both food-importing and food-exporting countries so engage in insulating behaviour, it does little to advance their national food security.
Kym Anderson argues much scope remains to improve economic welfare and reduce poverty and food insecurity by removing trade distortions. He summarizes indicators of these trends and fluctuations in trade barriers before pointing to changes in both border policies and complementary domestic measures that together could improve African food security. ??