Reducing Farm Subsidies and Debt and A Poverty Eradication Budget

Reducing Farm Subsidies and Debt and A Poverty Eradication Budget

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Reducing Farm Subsidies and Debt: In order to eradicate poverty for many developing countries, farm subsidies in aid-giving  countries and debt relief are more important than international aid programs. Successful export-oriented farm sector often offers a path out of poverty by taking  advantage of low-cost labor and natural endowments of land, water, and climate to boost  rural incomes and to earn foreign exchange.  For many developing countries this path is blocked by the self-serving farm subsidies of  affluent countries- $279 billion are roughly four times the development assistance flows  from these governments The European Union: - Staggering , accounting for over half of its total annual budget - Looming internationally - 2004 accounted for $133 billion of the $279 billion spent by affluent countries  on farm subsidies; the US spent $46 billion  - Encourage overproduction of farm subsidies resulting in depressed world  market prices, particularly for sugar and cotton which are the two  commodities where developing countries have the most to lose - Much of the economic gain from this assistance in the past was offset by the  EU’s annual dumping of some 6 million tons of sugar in the world market.  They capitalized on this commodity in 2005 when the EU announced that it  would reduce its sugar support price to farmers by 40%, thus discouraging  the excess production that depressed the world market when it was exported Sugarcane:  - It may be too early to say, but rising oil prices may boost sugar prices as  more and more sugarcane- based ethanol refineries are built. -
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This note was uploaded on 04/14/2008 for the course BIO 140 taught by Professor Chace during the Spring '08 term at Salve Regina.

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Reducing Farm Subsidies and Debt and A Poverty Eradication Budget

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