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Samizdata quote of the day Two decades ago, Sir Bob was at least demanding we give him our own fokkin’ money. This time round, all he was asking was that we join him into bullying the G8 blokes to give us their taxpayers’ fokkin’ money.
– Mark Steyn
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Still our ‘fokkin’ money.
Tonight, Geldof stands in the shadow of the American president. Forget Live 8; out of nowhere, G W Bush has unleashed the first fusillade capable of scoring hits in the struggle against African poverty. For someone in his position to call for the reciprocal dismantling of agricultural protectionism is truly incredible. I haven’t always been a huge fan of the President, but he’s just said something really important.
The condition of the EU relinquishing the same mechanisms makes no sense at all, of course. If the US unilaterally dropped farming tarrifs and subsidies, both it and Africa would benefit, regardless of what the EU does. So why make it conditional? Presumably because he doesn’t think the EU will do anything, sadly.
Daniel –
This is true, sadly. However, I think it’s a great way to throw the gauntlet at the EU’s feet. It really places the ball in their court. They can only say yes or no. They almost certainly won’t say yes, and if they say no it’s going to be that much harder for those who maintain and support the CAP to moralise about poverty and the underclass without looking like the filthy hypocrites they are. A realistic outcome is that the abolition of agricultural subsidies will placed much more firmly on the agenda. There’s a good chance Bush’s statement will bring forward the abolition of farm tariffs by several years. If so, that’s wonderful news for humanity in general.
Persuasive article. Wish I could write like that.
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Thank heavens!
I was starting to feel as out-of-step with the rest of mankind as I did during the mass-hysteria following Diana’s death.
The last few days have been like a vivid reinactment of “invasion of the body-snatchers”.
People I know, love and work with – all looking the same as ever – but all slightly different.
Possessed.
Normal critical functions replaced by an unthinking, automatic acceptance that Live 8 can not possibly be anything other than good, noble, honest and the answer to Africa’s woes.
This placid acceptance virus also infected the newspapers – even those who normally see through half-baked, socialist, blame the rich “throw money at it” schemes.
I confront people with this stark reality:
WE HAVE BEEN GIVING AFRICA BILLIONS OF OUR TAX CONTRIBUTION AND CHARITY DONATIONS FOR DECADES. POVERTY HAS GOT WORSE AND WORSE.
INESCAPBLE CONCLUSION: AID WILL NOT WORK IN AFRICAK
Did Japan get loads of aid after WW2?
No. It worked hard and governed itself well.
Where is Japan now?
Gleneagles
Light bulbs momentarily flicker above heads, before dimming out again.
The response: “Well at least it’s raising awareness of Africa. That’s what Live 8 is about – it’s not about money. They aren’t actually asking for any money from the public”.
That’s great – so all the money from those silly wrist bands will be refunded, the money from the text messages will be recredited and the cancelling of debts and doubling of aid that Make Poverty History are lobby for will be soley financed from Tony Blair’s own pocket, rather than our taxes?
To be fair Live 8 does serve an important function.
Firstly it gives braindead activists something new to get angry about (nobody gives a crap about Iraq, these days).
Secondly, I believe – or at least hope – that it will eventually open the eyes of my friends, family and colleagues.
If we cancel debt and double aid, Africa will, of course, continue to decline – this time without anyone from the charity industry being able to claim that more money is needed.
Live 8 could end up killing these horrible all-day bloated celeb charity fests for good.
Priceless!
The condition of the EU relinquishing the same mechanisms makes no sense at all, of course.
Sure it makes sense. A little game theory here from a master poker player, fellas.
Bush knows that the total benefit to Africa will be larger if the Euros drop their tariffs and subsidies.
He knows that the Euros will do no such thing unless they are put under considerable pressure.
He knows that he can always drop US trade barriers unilaterally.
So, the “conditional” offer is a no-lose for him, and holds at least a non-zero possibility of a net gain for the Africans.
You don’t have to be a nukular engineer to see that, as opening bids go, its a no-brainer.
Precisely, RC Dean. It was a masterstroke. Bush has little to lose by suggesting what he did.
Although, he could be in a difficult situation if the Euros said “Yes, that’s a great idea! Let’s do it!”
Chances of that happening, anyone?
Mr Dean’s analysis is uplifting, to be sure, but I think the truth is more downbeat. Bush knows the EU won’t do anything this week (they can’t – not all the affected EU countries are represented at the G8), so it’s a safe opportunity for him to sound like a sensible guy whose hands are tied by the daft Europeans, and hopefully it will all blow over in a few months. That way he won’t have to confront the domestic political row with the US agricultural lobby that would result.
To be even more downbeat (which is the inevitable result of thinking about Africa for too long), even if the rich West achieves zero import taxes and subsidies, it will have limited effect as long as Afrogov retains the bad ideas its finance ministers picked up while being educated at UK universities.
Africa, with a variety of terrains and resources, ought to be able to lift itself out of poverty simply by ignoring the rest of the world and allowing its 50-odd nations to trade with each other, but it mostly doesn’t. High import taxes are the rule, and trade between African states accounts for a fraction of their economic activity. In 2000 nine states formed a mutual zero-tarrif free trade zone and subsequently enjoyed double the growth in trade compared to non-members. But on the whole, Demba Ba of the World Bank is right to say that there are “more trade barriers between African countries than any other regions that trade with the continent”. These include not only official taxes and bureaucratic customs processes that take days to complete, but also corruption. You have to bribe the customs man, and you risk losing your goods to bandits. So on the whole, in Africa it’s easier to stay at home, and stay poor.
Without sensible government within Africa, providing free markets and the rule of minimal law to protect property rights, nothing Western governments do will make much difference – except perhaps that we will at last be leading by example, instead of encouraging bad behaviour.
Daniel – when talking about Africa, it’s an issue of morality. Throwing aid money at them only promotes continuing bad governance, although denying their farmers access to our markets and diluting the only competitive advantage they have – cheap labour – through subsidies is just appalling and callous. Dropping tariffs on farmers and removing trade barriers against Africa is the best way to help them – let those that can trade with us do so and better themselves. Hopefully, over a period of decades, others will see the benefits and do the same.
For the rest of the world, Bush has put cutting tariffs on the agenda. I never would have expected him to do this, given the powerful farm lobby on Capitol Hill. There’s a good chance that he’s let the genie out of the bottle on this one.
RCD: it’s “nukelar”, not “nukular”:-O