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June 15, 2005
Wolfowitz in Burkina Faso: Agricultural subsidies must be cut
So, Paul Wolfowitz, head of the World Bank, has been to Burkina Faso.
And he has said that the key to helping Africa's poor cotton growers is to cut the subsidies paid to U.S. and European agriculture producers. Great stuff.
Reuters reports: "On a tour of a cotton-processing factory in Burkina Faso, Wolfowitz said the World Bank would have a "strong voice" at the Doha trade talks to make a case for wealthy nations to reduce agricultural subsidies worldwide.
The subsidies cut into revenues of impoverished countries like Burkina Faso, one of Africa's biggest cotton growers...
Developing countries are pushed out of the market by the subsidies rich nations pay their cotton farmers. They argue the huge subsidies to U.S. cotton producers - which at $4 billion are larger than the whole Burkina Faso economy - are the cause of a collapse in cotton prices. America's cotton subsidies were declared illegal earlier this year.
"The key to tackling the problem of cotton subsidies, which obviously hurts farmers here in Burkina Faso and in other poor countries ... is to tackle agricultural subsidies across the board (in the Doha trade round)," Wolfowitz said.
The World Bank estimates that cotton subsidies in the United States and Europe are cutting into the profits of seven West African producing countries by about $250 million a year. Burkina is estimated to have lost $22m this year as a result of the subsidies.
Wolfowitz was speaking after a tour of a cotton-processing factory in Bobo-Dioulasso, the second largest city in Burkina. It is encouraging to hear him acknowledging the trade injustice with agricultural subsidies that benefit the rich at the expense of the poor. Burkina Faso, third poorest country in the world, is a typical example of this. It has a good cotton industry - it is now West and Central Africa's leading cotton producer. About 4 million of its population of 11 million depend on cotton for a livelihood. But this is being undermined by rich country subsidies.
Let us pray for justice in trade to benefit the poor, and for G8 leaders to tackle the issue when they meet together in July.
Posted by Keith at June 15, 2005 10:57 AM
Comments
Thanks for blogging about this Keith. I have to admit that I groaned inwardly when you mentioned Wolfowitz in your other recent post. I didn't like his role leading up to the Iraq war (he was one of the most hawkish hawks) and I can't stand the Project for the New American Century (http://www.newamericancentury.org/) of which he was a founding member. That said, I suppose that any sensible noises about cutting US cotton subsidies are to be welcomed, no matter who they come from. I wonder if Djibo is on his itinerary.
Posted by: Steve at June 16, 2005 01:53 PM
He's actually left for Rwanda now. After Bobo, he went to Ouaga to meet Blaise before flying out.
Posted by: Keith at June 17, 2005 07:24 AM
