Two Farmers each grow an ear of corn costing them $1. Why does
one get to sell his at market for 50 cents less than it took him to grow it yet still make a profit? Find out about
trade subsides and how they hurt developing nations.
Developing
a global partnership for development means the world must come together and look at the way it does business with poorer countries.
Sometimes
the way business is done is not fair because it puts poorer countries at a disadvantage. One of the unfair
ways business is done is through the use of trade subsidies.
A
trade subsidy is free money given by the government to farmers or producers of products.
For
example, a trade subsidy is when a farmer grows corn and the government pays him money for his corn before he has
even taken the corn to market.
This
makes it possible for the farmer to sell his corn for a low price, because he has already been paid money for it through a
subsidy.
These
subsidies were started to help farmers compete against farmers in other parts of the world who didn't share the same
high costs for growing their corn, but instead of being a good thing, subsidies have become a bad thing.
Instead
of the money actually going to farmers, 75% of subsidy money goes to giant corporate farms that don't need any
help.
Here
is an example of why it is bad. In many places around the world, like Africa or parts of Latin America, a farmer
may have to sell an ear of his corn for $1.00 so he can make back the 80 cents it cost him to grow the corn.
The
difference between the cost of growing the corn and what the farmer sold it for at market is 20 cents. 20 cents is the farmers
profit on his sale. His profit is money he can use to pay for his kids clothes or food or school supplies, or invest
back into his farm.
The
farmer living in a country, like the United States or The United Kingdom that gives out big subsidies,
can sell his corn for only 50 cents, even if it cost him the same 80 cents to grow it like the farmer in Africa
or Latin America.
This
is because the farmer from the U.S or U.K. has already been given money for his corn though the subsidy.
He can sell it for less and make the same amount of money as if he had taken it to market and sold it for $1 an ear.
People
will always buy the cheaper corn so they can save money. This means people will always buy the corn from the farmer who
has gotten subsidies, because he can always sell his corn cheaper than the farmer who doesn't get subsidies. Sometimes the
farmer without subsidies must sell his ear of corn for less than it cost him to grow it or face not selling it at all.
Changing
the practice of subsides is one way we can build better partnerships around the globe and it is a powerful one. You can learn
about other ways to build partnerships through some of the links below.
Things You Can Do to Make A Difference
1. Learn about the Farm Security and Rural Investment Act of 2002 that President Bush signed into
legislation. This law makes rich corporate farmers richer and developing nations more impoverished. http://images.google.com/imgres?imgurl=http://www.ncpa.org/dpd/icons/env.gif&imgrefurl=http://www.ncpa.org/dpd/weekly/2002/pd081502.html&h=61&w=100&sz=3&hl=en&start=18&tbnid=cxp4-_VUw54-KM:&tbnh=50&tbnw=82&prev=/images%3Fq%3Dcorporate%2Bcorn%2Bfarm%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DG
2. Speak out against unfair child labor practices. Did you know the cacao in a Nestles
chocolate bar or bag of M & Ms may have been picked by someone only 8 years old? See what your class can do
to end the use of child labor. http://www.globalexchange.org/campaigns/fairtrade/cocoa/fairtradeintheclassroom.html
3. Did you know 218 million children around the world are used as slave labor. Learn about World Child
Labor Day held every June 12th http://www.ilo.org/public/english/standards/ipec/wdacl/2006/index.htm and Join S.C.R.E.A.M. (Supporting Children's Rights through Eaducation, the Arts and Media) http://www.ilo.org/public/english/standards/ipec/scream/index.htm
4. Find out what kinds of food you can buy with the Fair Trade logo, ensuring farmers in poorer
countries get a fair amout of money for their product. http://www.globalexchange.org/campaigns/fairtrade/cocoa/retailers.html
5. Connect with kids from other parts of the world and find out what they think about these
issues at http://www.chattheplanet.com/ This is for kids from all over the globe. It has blogs and weekly video meetings
you can participate in and ways you can take action. Learning about your global neighbors is one of the best actions
you can take.
6 This is a great site dealing
with all sorts of environmental issues and wildlife. It has a blog, contests, games, a club you can join, it even can help
you with your homework. Check it out, it's a lot of fun! stuff.http://www.ecokids.ca/pub/eco_info/topics/climate/scientists/index.cfm
7. Send this link to a friend and let them know it's up to them to make the world a better
place; and that they can by taking AN ACTION A DAY. http://meetingthegoals2015.tripod.com