OECD slams agro subsidies by industrialized nations
By Kabanda Chulu in Kitwe
Wed 11 Aug. 2010, 14:20 CAT
THE latest report of the Organisation for Economic Cooperation and Development (OECD) has continued to slam rising subsidies for agriculture in industrialised countries thus distorting trade and destroying livelihoods of poor farmers in developing countries.
The continued increase in agriculture subsidies comes at a time when the European Union (EU) is simultaneously forcing developing countries in Africa, the Caribbean and Pacific to further open their markets through the ‘unfair’ trade deals called Economic Partnership Agreements (EPAs).
In a report titled ‘Agricultural Policies in OECD countries at a glance in 2010’ OECD stated that subsidies for agriculture in industrialised countries have increased from 21 per cent in 2008 to 22 percent in 2009 to record US $252.5 billion.
“The subsidies for farmers in OECD countries have been at the centre of a heated dispute for years, both at the level of the European Union and the United States and within the larger framework of the World Trade Organisation and its deadlocked Doha Development Round.
The EU spends about US $75 billion on subsidies for agriculture, even though the sector represents only about two per cent of the total gross domestic product of the union,” it stated.
“Subsidies for agriculture in industrialised countries grew in 2009, benefiting the largest companies and land owners, despite repeated and consistent evidence that such subsidies contribute to the destruction of the livelihoods of poor farmers in developing countries, especially in Africa, and that they distort international trade.”
It stated that the European Union's subsidies for farmer increased to 24 per cent from 22 percent and between 2007 and 2009, EU farmers received an average of 23 per cent of their gross receipts in form of direct financial support from the state.
The OECD represents the 30 most industrialised countries of the world, including the US and most members of the EU.
The report stated that EU subsidies for agriculture were a shame and cited the example of subsidies for milk, which form part of the EU agricultural policy.
“Due mostly to over-production, the European milk prices for farmers were in early 2009 extremely low, at less than 0.20 euro (US $0.26) per litre.
Instead of reducing production to stabilise prices, the EU reintroduced subsidies for milk in 2009 to support producers,” it stated.
“As a consequence, the EU is again exporting milk to the whole developing world, especially towards Africa, at ‘dumping' prices’ and by so doing, the EU is destroying the livelihoods of farmers in the poorest countries of the world while artificially maintaining a too high level of production.”
Labels: FARM SUBSIDIES, OECD
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Zambia, Finland launch policy framework for investment
By Mutale Kapekele
Sat 22 May 2010, 04:00 CAT
ZAMBIA, with assistance from Finland yesterday launched the policy framework for investment project which is aimed at enhancing investment policy design and implementation.
The project, which will be conducted within the framework of the ‘unlocking investment potential in Southern Africa’ programme, aims to enhance investment policy design and implementation in Zambia and would use the Organisation for Economic Cooperation and Development (OECD)’s Policy Framework for Investment (PFI) as a benchmark to carry out the work.
Speaking at the launch, Finland under secretary of state for policy and development Ritva Koukku-Ronde commended Zambia for consistently strengthening the country’s business climate over the past five years.
“Private investment is a key to achieving sustainable development,” Koukku-Ronde said.
“It plays a crucial role in generating economic growth, job creation and poverty reduction. We commend the Zambian government for consistently strengthening the country’s business climate over the past five years as evidenced by Zambia’s improved ranking on the World Bank’s doing business index.”
She said the use of policy framework for investment offered Zambia a chance to increase the opportunities for attracting investments in the long term.
And commerce minister Felix Mutati said the government would continue working towards making Zambia the investment destination of choice.
Mutati said it was not enough to attract foreign investment to the country but to also be competitive by creating a conducive environment where the private sector thrived.
He said to respond to the need of an integrated approach to boost competiveness, the PFI project would engage “numerous government agencies involved in developing and implementing investment related policies.”
Labels: COBALT, FINLAND, INVESTMENT, OECD
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Policy Reform for Investment:
The case of Zambia
By Chola Abel MWITWA
Director-Aftercare & Business Development Services
ZAMBIA INVESTMENT CENTRE
I came across this file, while searching for the Triangle Of Hope concept, which apparently was already in existence in 1992. President Mwanawasa mentioned this as one way he would pay attention to the domestic economy instead of foreign investment.
The problem I have is that the government doesn't seem to take initiative in the involvement of the ordinary citizen in the economy. Waiting for taxation of their wages from their employment in foreign firms seems to have been the only way the state wanted to benefit from the mines, at least until recently.
If they're not careful, Zimbabwe will overtake Zambia when their land reform program takes off. It will be the final laying to rest of the case for neoliberalism.
A few comments on this file:
- Non-discrimination as a general principal underpinning laws and
regulations governing investment
Isn't the government in direct violation of this rule every time they advantage foreign investors and businesses over Zambian investors and businesses?
Labels: OECD, ZIC
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Trade vital for sustainable economic growth - expert
By Fridah Zinyama
Wednesday March 07, 2007 [02:00]
A TRADE expert has observed that Zambia has no hope of attaining sustainable economic growth without a substantial increase in its productive and trade capacity. In a presentation during a meeting organised by the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organisation (WTO) in Doha, Quatar, Dennis Chiwele of Zambia’s DNC Consultants said the private sector should actively be involved in the country’s development strategy and efforts to reduce poverty. “This means that sector-specific strategies should adopt trade as a crosscutting issue and incorporate the need to promote and facilitate trade,” he said.
Chiwele said the use of the value chain approach by the private sector and government in identifying constraints that exporters experience and using the results was good, as it would stimulate the growth of agricultural trade. “There is need for support to both private and government institutions which promote trade and put measures that ensure exporters deal with both the supply and market penetration,” he said.
Chiwele added that there was also need for government to reduce the cost of doing business, as it would improve the business climate in the country. “Raising the country’s competitiveness in foreign markets can be done by reducing the cost of doing business in Zambia which has been the main complaint of producers in the country,” Chiwele said. He said urgent measures needed to be put in place to remove inefficiencies in key infrastructure sectors such as transportation and telecommunication. “On transportation, the current strategy of continuous rehabilitation of key roads is paying dividends and should be sustained and the concessioning of Zambia Railways is likely to raise efficiency of this railway system,” he said.
Chiwele emphasised the need for Zambia to become the hub for regional air transport but that this could only be accomplished with more investment into the sector. “The liberalisation of the telecommunication system in the country will also go a long way in bringing efficiency, gains and reducing tariffs,” Chiwele said. He also stressed the need for further deepening of financial markets, with a view to bringing down interest rates to make the cost of borrowing more affordable especially for small and medium enterprises and help to reduce exchange rate volatility.
Labels: OECD, TRADE, WTO
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