Cotton illustrates the problem. Without subsidies, it would not pay for Americans to produce much cotton; with them, the US is the world’s largest cotton exporter. Some 25,000 rich American cotton farmers divide $3 to $4 billion in subsidies among themselves – with most of the money going to a small fraction of recipients. The increased supply depresses cotton prices, hurting some 10 million farmers in sub-Saharan Africa alone. Seldom have so few done so much damage to so many. That damage is greater when we consider how US trade subsidies contributed to the demise of the Doha Round. Rather than offering to do away with its cotton subsidies, America offered to open up its markets to cotton imports – an essentially meaningless PR move that quickly backfired.
For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006
For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006
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