Wednesday, August 26, 2009

FOOD AID AS DUMPING

"Some years back, a keynote speaker at the International Famine Centre at Cork, Ireland, detailed how maize was loaded on ships bound for Britain at the height of the great Irish potato famine that killed some 1.5 million people more than 150 years ago. He paused and then lamented: “I wonder what kind of people lived at that time who were not even remotely offended at the sight of millions dying of hunger in the same village where the ships were being loaded.”

A hundred years later, the same class of people were largely responsible for the great Bengal Famine in 1943, in which an estimated 1.5 million to 3 million people perished. As Nobel laureate Amartya Sen explains in his now well-known theory of entitlements, the Bengal famine was not the result of a drastic slump in food production but because the colonial masters had diverted food for other commercial purposes. And if you are wondering whether the same evil class of the elite decision-makers has perished with the collapse of the erstwhile colonies, hold your breadth.

In the last 60 years or so, following the great human tragedy of the Bengal famine, food aid was conveniently used as a political weapon…

Food was then a political weapon. Food aid has now in addition become a commercial enterprise. Famine or no famine, the Shylocks of the grain trade must have their “pound of flesh”.

— Devinder Sharma, Africa’s Tragedy; Famine as Commerce, November 10, 2002

Certain types of food “aid” (when not for emergency relief) can actually be destructive. Dumping food on to poorer nations (i.e. free, subsidized, or cheap food, below market prices) undercuts local farmers, who cannot compete and are driven out of jobs and into poverty, further slanting the market share of the larger producers such as those from the US and Europe.

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