Home News Livestock Crops Markets Hay, Range & Pasture Home & Family Classifieds Resources This Week's Journal

Auction Calendar
Farm Survey

Reader Comment:
by Pamela Drew

"Lost in your lament over export obsticles is the basic truth that repeated claims of"....Read the story...
Join other discussions.


A developing world

World trade has been attractive since the first ships sailed on the Mediterranean Sea. The problems with country-to-country trade are also as old and as intractable. In my career as a reporter, I have followed the work of the General Agreement on Tariffs and Trade that evolved into the World Trade Organization. It seems that no action is ever taken by the 140 nations, and the only consistent headline is missing the deadline that they imposed upon themselves. In the new century, WTO has finally come to realize which nations are most important but is unable to offer anything other than a peaceful forum for them to meet and disagree.

World leaders, meeting in June at the G8 and G20 meeting in Canada, dropped the commitment to concluding the Doha Round of world trade talks this year. These were started in 2001 to give you a timeline. The representatives only renewed their pledge to finish the round-- omitting talk of deadlines. Whew! It must have taken all day to come up with that idea.

I remember interviewing the U.S. Ambassador to the GATT in Geneva, Switzerland, in the mid 1980s. He said: "We never solve any problems here, we just erode them." I didn't know how profound his statement was until I watched the process for another 20 years and saw very little change in trade policy.

The latest disagreement in agricultural trade has been about fairness in reduction of domestic farm support and increased market access. A divide has always been there between developed countries like the United States and Europe, but the developing countries China, India and Brazil have used the WTO to disproportionately gain on both sides. They produce huge quantities of agricultural products, with increasingly modern technology, while pleading that they cannot open their markets to the United States and Europe. These three (developing) economic powerhouses have changed so much during the WTO negotiations that they are now called "advanced" developing countries.

This is a start, but it is hard to get anyone or any country to give up their old status to step into a new game without some concessions. In fact, if we are playing this way, let's re-evaluate the river transportation systems in the United States and devolve this country back to a lower level. "Less developed than we once were" would work for me.

Of the three countries that are growing forces in the world economy, I have traveled to two. I accompanied Secretary of Agriculture John Block to China in 1981 and went back in 2008 with the Iowa Soybean Association. The changes were mind boggling. China was a closed society until 1978 and had made only a few small steps forward by our arrival. The airport concrete in Beijing was aged and grey. We exited the plane and hesitated at the top of the outdoor gangway, as it looked like we had gone back in time. The stern-faced officials, dressed in blue or grey, shook hands with the secretary and were cordial but little more. The people walked or rode bicycles, and the small farms had the feel of suffering and poverty. In 2008, we landed at a new airport and entered the most advanced terminal I have ever seen. Signs were in English and the people were smiling and dressed in all colors of western fashion. The cities were alive with activity, and cars were so numerous that traffic jams lasted all day. The apartment buildings were new and lined the perimeter of the city. Farms remain small and workers many, but the productivity and transportation are vastly improved.

China has made more progress in a shorter time than any other country in the world. Its growth in domestic production has averaged nine percent per year since 1981. If it is a developing country, it is a rapidly developing country. There is no precedent for its expansion. Only social unrest, leading to the overthrow of its communist government, could slow the economic advancement of this Asian powerhouse.

Brazil has resources that boggle the mind. Their land mass is almost as large as the United States, and there are no mountains within the country. Land suitable for farming is 50 percent larger than ours. Rainfall is plentiful and the rivers are the largest in the world. An ocean-going vessel can travel a thousand miles up the Amazon to load grain, wood or other products.

I also went there with Block in 1983. The scrub timber of the frontier state of Mato Grosso was being chained down and disked under to create fields. Small squares were carved out of a land mass that is as large as the Midwest. Twenty years later, I eagerly peered out of the airplane window as we broke out of the clouds to land at the same airport, and it looked like Iowa or Illinois. The fields were vast and the land that remained in native vegetation was as small as they could make it and remain in compliance with their environmental regulations.

Brazil farms on an industrial scale using many workers who are paid less per day than ours make in one hour. Their production of many row crops is the largest in the world, and they are a major cattle producer. Brazil differs from China, as it is a major exporter of raw materials due to the small overall population of the country. The cities are large, but they are coastal except for Brasilia, which is the modern inland capital. To go with other good fortune, Brazil has identified huge petroleum reserves offshore. The challenge will be drilling in deep water without environmental damage. The government of Brazil has gone against the trend in South America and remains democratic and stable. Corruption exists but it is widely reported in the news, and the public realizes its power to hold politicians accountable. Brazil needs infrastructure in the interior to fully exploit its potential.

I have not been to India, but I have talked to many of its residents--primarily when I call an 800 number to ask about my credit card, appliance repair or anything else where an educated, English-speaking work force can be hired to work at a low wage. India leads in education and business adaptability but lags in modernizing its culture and solving its social problems. India sits in a precarious place in world politics, and the conflict with Pakistan may escalate as the Muslim nations gain military and economic power.

As you can see, we live in a complex world. China is a manufacturer, Brazil produces raw materials and India excels in information transfer. I'll follow the action of the WTO with a calendar, as years and decades seem to be the smallest increment to measure their progress. I guess it is better to talk than fight. I'm happy for them. I hear Geneva is nice this time of year.

Editor's Note: Ken Root is an independent agricultural journalist. He was named the 2009 Farm Broadcaster of the Year and was the 2008 winner of the Oscar in Agriculture. He is an Oklahoma native and an experienced print, radio and television journalist. He has spent the last five years as Lead Farm Broadcaster at WHO Radio in¬ Des Moines, Iowa. He and his wife Gail have two adult children and two grandchildren.


1
Click for related articles Little cattle
Closing government offices and opening our minds
Costa Rica: Prototype for the future?
Appreciating abilities

Comments on Articles article 2010- 28 - 0630RootZonesrMR.cfm
Add Your Comment
To post a comment on this story, enter your screen name and email address then click "Add Comment." Your email address will not be displayed.


171 Recommend | 0 Comments

Agriculture News from HPJ - Your Ag News Source
Google
 
Web hpj.com
Copyright/Privacy
Copyright 1995-2011.  High Plains Publishers, Inc.  All rights reserved.  Any republishing of these pages, including electronic reproduction of the editorial archives or classified advertising, is strictly prohibited. If you have questions or comments you can reach us at
High Plains Journal 1500 E. Wyatt Earp Blvd., P.O. Box 760, Dodge City, KS 67801 or call 1-800-452-7171. Email: webmaster@hpj.com

Search HPJ






Canola U registration
Harvest Heroes ad




Inside Futures

Editorial Archives