The World Bank calls for cuts in subsidies
MetadataShow full item record
CTA. 2003. The World Bank calls for cuts in subsidies. Agritrade, January 2003. CTA, Wageningen, The Netherlands.
Permanent link to cite or share this item: https://hdl.handle.net/10568/52514
External link to download this item: http://agritrade.cta.int/Back-issues/Agriculture-monthly-news-update/2003/January-2003
Speaking at the Centre for Economic Studies in Munich on...
Speaking at the Centre for Economic Studies in Munich on November 19th 2002 the World Bank Chief Economist Nicholas Stern spoke of the hypocrisy of those who 'preach the advantages of trade and markets and then erect obstacles in precisely those markets in which developing countries have a comparative advantage'. In this context he noted both the recent US Farm Bill and the 'recent agreement in Europe to delay the reform of the Common Agricultural Policy', both of which he described as 'deeply damaging'. Chief Economist Stern also claimed that poor countries needed to address internal impediments to trade if they were to benefit from increased world trade. Comment: The implicit assumption in Mr Stern's critique is that an intensification of the current reform will reduce and eliminate the adverse effects of OECD agricultural policies on ACP developing countries. However evidence is emerging that the new reformed instruments of support also have negative effects on ACP developing countries. Unfortunately Mr Stern has little to say about the new external effects of reformed agricultural policies on the various regions of the developing world, an area of increasing importance and concern.
- CTA Agritrade