Re: Continuation of free trade

["venugopal" <gvvs@nird.ap.nic.in>]

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IPI_Marker

No, Abhijit, nowhere is an assumption that people will be condemned to
their
own occupations. What was asserted was the point that when the people
are
not in a position to diversify, when alternative plan to diversify their

occupations is not in place or anywhere in sight, killing them by the
tool
of export subsidies is wrong and unfair. This is the underlying point in
all
the WTO discussions and bargaining by developing countries with
developed
countries. All I have tried to point is that it is definitely not 'free
trade' if developed countries try to perpetuate their export subsidies.
I
find it ironical that developed countries have apparently got convinced
as
they keep giving some kind of commitment now and then on deadlines for
phasing out  export subsidies in agriculture but, I have to convince so
many
of my friends  here in IPI on the same points conceded by the western
world!
2. Higher production of wheat is no insurance against malnutrition or
starvation as so many studies including the famous one by Amartya Sen
has
shown. Indian experience is very much relevant here, as we have seen
good
and sustained increase in food grains production in last ten years but
it
has not helped in preventing starvation. So, there is no evidence at all

that calorific intake for the poor will increase if a country imports
wheat.
As I have argued, there is no surety that what you term as 'cheap wheat'
is
actually cheap, if you scrutinise the overall cost-benefit aspects of
this
series of transactions, after adding the displacement or diversification

cost of million people and its overall cost for the society. Nothing
becomes
cheap just because it is called so.
3. If I am convinced that you need my help, I will gladly extend it
Abhijeet, to the best of my ability. I agree that individual charity has
its
place. But, here the question is that of a socio-economic system. Do we
need
to move towards a socio-economic system where everybody's problems are
addressed on the basis of justice, equality and fraternity? Do we need
to ke
ep the objective of social justice in mind while deliberating on
economic
policies? Or, do we give up all pro-poor initiatives and declare a kind
of
Jungle Raj?I have no objection to somebody believing that Adam Smith's
invisible hand will somehow guide everything nicely. But the point I am
trying to make is that you cannot be manipulating the invisible hand
through
export subsidies, oligopolies, military manouvering, diplomatic
manouvering
etc and at the same time sing the glorious tune of the invisible hand.
Regards
Venugopal
----- Original Message -----
From: Abhijeet Pradhan <perdi420@yahoo.com>
To: <debate@indiapolicy.org>
Sent: Tuesday, December 18, 2001 10:52 AM
Subject: Re: Continuation of free trade
> IPI_Marker
>
> Venu,
>
> Implicit in you argument is the assumption that those who grow wheat
> cannot
> grow anything else instead...  Is that correct?  Why not grow
sitaphals
> which cannot be subsidised in the US, because they cannot be grown
> there?
>
> Also, is it fair for a billion people to pay more for wheat to save
the
> livelihoods of a million farmers?  Hmmm, maybe some 3 million people
who
> are
> below the poverty line would get their daily caloric needs met if
cheap
> US
> wheat was imported.  But you would say to them no, please suffer a
> little
> malnutrition, because otherwise a million farmers would not be able to

> live
> in dignity.  If we imported cheap US wheat, what will be the result of

> the
> saved money?  Maybe people will buy more fruits or bhel from the local

> pani-puriwalla.  But no, he has to live in a little less "dignity",
> because
> the million farmers have to live in more "dignity".
>
> Do you practise what you are trying to preach??  Then please tell me
> where
> you live so I can sell you some rice at twice market cost, so that I
can
>
> live in dignity with your money!!  Your kids will have to give up
their
> weekly chocolate, but hey, at least you will help me live in dignity!!

>
> Abhijeet Pradhan




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