Farm subsidies are immoral

Let's get normative in our analysis. U.S. farm subsidies are hurting African farmers. Neither the Republicans nor the Democrats seem poised to do much about it. This is immoral.

The cotton market, which provides nearly 70 per cent of impoverished Burkina Faso’s cash exports and income for more than a quarter of its 13 million people, has been brought to breaking point by factors known locally as “the monster with three heads”: a weak dollar, low world prices and US cotton subsidies.

This year will be crucial for the futures of 10 million West African farmers as the US rene-gotiates its Farm Bill, which has attracted international condemnation.

America’s 25,000 cotton farmers receive subsidies totalling some $4bn, allowing them to undercut their developing competitors. The subsidies were ruled illegal by the World Trade Organisation three years ago, yet only 10 per cent have been dropped so far, and Washington still pays many times more in subsidies to these farmers than it gives in aid to Africa each year. As a result, world cotton prices are now at the lowest since the Great Depression of the 1930s.

The answer isn't "fair trade," nor more foreign aid. The solution is more open, free trade.