Agriculture Reference
In-Depth Information
resulted in several important changes through market-based economic liberalization
and globalization. Farming that had no comparative advantage, because it was under
policy protection has been exposed to the giant international market. One of the
important factors behind the establishment of the Millennium Development Goals
(MDGs)
3
was a decline in development aid to the least-developed countries, after the
Cold War, by about 30% by West-Bloc countries and by some 50%, if assistance
from East-Bloc countries is included. As a result, developing countries, where the
agricultural sector occupies a major share of the economies and more than half of
the populations depend on agriculture for a living, sought to switch from self-
sufficient to commercial agriculture in an effort to cope with the impact of the
international market. Meanwhile, the number of poor people has increased and the
gap between rich and poor has expanded, as small farmers started contract
production under large farm owners or as they lost their farm land to become tenant
farmers or farm labourers - some of the negative impacts of globalization.
Within that context, many developing countries are preparing Poverty Reduction
Strategy Papers (PRSP) in return for receiving financial support from the World
Bank, through the International Development Association (IDA), the Bank's branch
for the poorest countries. This indicates that they face a situation where they find it
extremely difficult to come up with their own visions of development just by dealing
with individual development issues; they have no option other than to introduce
more comprehensive approaches. In dealing with the poverty issue, the MDGs
emphasize “a fair distribution of the results of economic growth and implementation
of cooperation focused on aid to the poor as its direct goal”. It also points to the
importance of “support for poor rural areas in remedying regional disparities, along
with aid for basic education, health and medical care, safe water supplies as well as
support for women in developing countries”. PRSPs also emphasize 'human
security'.
A major challenge to the agricultural industry in the developing world,
associated with the increasing globalization and liberalization is to find out how to
abandon a culture of opportunism in their business dealings with suppliers and
buyers and replace it with trust and transparency and that in a continuous struggle to
sustain economic viability.
GLOBAL CHANGE AND RURAL DEVELOPMENT: THE PRESENT
CAP reform - a long-term perspective for sustainable agriculture
In June 2003, EU farm ministers adopted a fundamental reform of the Common
Agricultural Policy (CAP). This reform completely changed the way the EU sup-
ports its farm sector. The new CAP is geared towards consumers and taxpayers,
while giving EU farmers the freedom to produce what the market wants. Eventually,
the vast majority of subsidies will be paid independently from the volume of
production. To avoid abandonment of production, Member States are allowed to
3
www.un.org/millenniumgoals
Search WWH ::
Custom Search