John,
Here is some of what the paper discusses with regard to agriculture.
Sound very similar to what you have posted. I am frankly amazed at your
condemnation of this article as it sounds like you’d have to condemn your
own positions.
“Two patterns of agricultural policy have emerged in the post-World War II
period. In the developed countries such as the United States, members of
the European Union, and Japan, economic policy tends to shift the domestic
terms of trade in favor of agriculture. Farmers tend to receive prices
for the major commodities that are above international border price
levels. Although in some cases elevated in part by domestic commodity
programs, prices are established in practice by a variety of protectionist
measures, encompassing both tariff and nontariff barriers.
In developing countries, the reverse is the case. Economic policy tends
to discriminate against agriculture. The policy means by which this
occurs includes large and in some cases draconian overvaluation of
national currencies. An overvalued currency is an implicit tax on exports
and an implicit subsidy for imports. Distortions in foreign exchange
markets are complemented by a whole series of explicit export taxes.
Embargoes on exports, confiscos, and complicated export rules, all
designed to dam domestic production up in the domestic economy and produce
lower prices for domestic customers. The net result of these policies is
to shift domestic prices for agricultural commodities below their
international border price equivalents.
The combination of these two policy stances is to produce a gross
inefficiency in the global use of agricultural resources. All too much of
the world’s agricultural output is produced in the high-cost developed
countries, and all too little in the low-cost developing countries. This
tendency is exacerbated by the export subsidies which further lowers the
domestic prices in the developing countries. This dumping takes place
both through food aid programs and through more direct export subsidies.”
(Page 9)
What is the effect of all this? Well the authors go on to write the
following.
“In developed countries for example, shifting the domestic terms of trade
in favor of agriculture leads to the excessive use of fertilizers,
pesticides, and other modern inputs. This excessive use leads to the
pollution of both underground and above ground water supplies, in the
latter case including lakes, reservoirs, streams and rivers.” (Page 10)
In other words, what the authors are saying is that by returning the terms
of trades to their “natural” levels would do much to move economic
activity to becoming more sustainable.
Steve
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"In a nutshell, he [Steve] is 100% unadulterated evil. I do not believe in a 'Satan', but this man is as close to 'the real McCoy' as they come."
--Jamey Lee West
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