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Bono The U2 lead singer’s recent travels in Africa with Paul
O’Neill, the American treasury secretary, have produced some good sense from
the rock star. Sure, he’s
still pressing America to cancel debt and give more aid; two policies, which
even if they did no harm, can only be drops in the ocean of Africa’s problems. Fortunately, Bono now recognises that globalisation, or
international trade if you prefer, will be the real engine of Africa’s
recovery. Standing in a
Ugandan flower farm where women do backbreaking work for pitiful wages he
declared it “globalisation at its best.” Indeed it is. The
pay is poor and the work hard, but it’s better than the alternative,
subsistence farming. Europeans get
flowers in winter, and Ugandans eat better and can afford school fees.
Everyone benefits, but they could benefit so much more if northern
countries’ trade barriers were reduced. Oxfam and Christian Aid have both recently issued reports
making this point. Rich countries
spend almost a billion dollars a day on farm subsidies alone.
Oxfam estimates that this northern protectionism costs developing
countries $100 billion per year, twice what they receive in aid.
Africa’s exports, even with the trade barriers in place, amount to ten
times what it receives in aid. A
proportionally small increase would do more good than a large amount of extra
aid; much more since aid has so many unintended harms. Unfortunately neither Bono nor Oxfam seem willing to make
the point that removing trade barriers would be good for developing countries
too. The beneficiaries of
protectionism (French farmers, US steelworkers etc.) are identifiable and hence
politically powerful, but those who are damaged by trade barriers easily
outnumber them. We all have
to pay for more expensive food and cars, although proportionally the poor spend
most. If celebrities really want to help Africa they need to stir
developed country voters to anger over this harm to their own pockets.
Calling for the “sacrifice” of removing trade barriers may make us
feel better, but it probably won’t happen.
People like O’Neill will find it politically easier to cancel the debt,
and bung Africa some aid instead. Only when Bono can persuade voters back home that lowering tariffs is in their own interest will politicians gain the courage to do what really would help Africa; face up to their farm and steel lobbies. Jim Thornton 9 June 2002 |
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