Agricultural Economies' Dynamics Misunderstood
In regard to Jagdish Bhagwati and Arvind Panagariya's "Why the Trade Talks Collapsed," editorial page, July 7): There is far more involved than indicated in their article, which mostly focused on India. The reality, in our view, is that the agricultural economies of most developing countries have been grievously harmed by the free-for-all of globalization, which treats agricultural products as just another commodity and gives little heed for the social and cultural consequences of displaced farmers. Neither the World Bank nor the World Trade Organization seems to fully understand the dynamics and unique needs of the world's agricultural economies, which are not interchangeable and -- unlike non-agricultural products -- can be subject to instant devastation from floods, droughts and other climatic factors.</br></br>The bottom line is that the developing world has a compelling need to protect its farmers, and the Western world has a strategic need to help them to not just survive but also prosper. It is simplistic to assume that free and open markets will solve all problems. As we have seen, they can equally well lead to severe economic disruption, instability and violence.</br></br>Our organization, in cooperation with others, is developing a model for better regulation of agricultural trade that we believe is increasingly needed in order to assure future security of the world's food production -- for the benefit of the world's farmers and consumers alike. Although not directly related to Doha, the absence of such a model is surely a fundamental reason for Doha's collapse.</br></br>Jacques Carles</br></br>Executive Director