Sunday, 27 August 2006
Aid, Trade and Global Warming
There’s a lot of debate about how best to help people in poor and disaster-prone communities around the world. Finding the right balance between trade and aid seems particularly hard. Do donations of money, food, and equipment meet urgent basic needs, or do they just encourage dependency and relieve local leaders of responsibility to care for their own people? One aid agency representative recently compared aid donations to “crack” cocaine. Given aid's mixed track record, the World Bank and others have spent a lot of time and effort trying to figure out when it helps, and when it harms.
Maybe trade is the way forward? The WTO and others argue that integrating local producers into the global economy is the best way to channel money into local communities around the world and encourage more efficient production. Mexican maize farmers forced off their land to make way for this efficient process might beg to differ. Groups like Fairtrade and EqualExchange try to make sure that local producers benefit from this exchange. Meanwhile, UK consumers, worried about “food miles” are beginning to wonder whether they want to buy flowers and produce flown in from Kenya and other developing countries.