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The Globalisation of Food

The Globalisation of Food. Marina Kent. March 13, 2013. Globalisation and agriculture. Agricultural exports from developing countries have declined form 50% of total traded goods in 1960 to 6% in 2000 2030-net importers Policy

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The Globalisation of Food

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  1. The Globalisation of Food Marina Kent March 13, 2013

  2. Globalisation and agriculture Agricultural exports from developing countries have declined form 50% of total traded goods in 1960 to 6% in 2000 • 2030-net importers • Policy • OCED countries-held back growth of agricultural exports from developing world via trade barriers and support for domestic production. • In 2000 totaled US$ 245 billion in the OCED countries • Market • Agricultural development hampered by saturated developed markets (coffee cocoa and tea)

  3. Liberalisation of trade-Who wins? • Benefits mainly to consumers and taxpayers in industrial countries (where agriculture is most protected) and to agricultural exporters from developing countries • Urban and landless rural in developing countries could end up paying more • This is because developing countries have become net importers of food, dropping OCED subsidies would merely bring about a shift in market shares of the OCED countries.

  4. Liberalisation of trade-how to ensure the vulnerable win • Eliminate subsidies • Simplify access to OCED markets • Reduce OCED tariffs • Ensure safety net for low income consumers to shield form price increases in imported food. • Committed investment in agricultural productivity

  5. Does globalisation disadvantage developing countries? • Technological advances in transport and communication means moving goods around the world easier and cheaper • Countries with physical and infrastructural hindrances will be disadvantaged • A reason for Africa to be concerned about global environmental issues is that most poor countries are clustered around the equator which will be the most affected by crop damage associated with climate change

  6. Does globalisation disadvantage developing countries?

  7. Can developing countries benefit from Globalisation? • Countries may become poorer relatively if they fail to benefit from globalisation • Also requires openess to international trade and investment by Multi National Enteprises • Government investment

  8. References: FAO World Agriculture-Towards 2015/2030-Summary report Climate Change Challenge for the Poor, Yale Global The Economist, The World in 2013

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