New Directions for Agriculture in Reducing Poverty

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Trade and smallholder agriculture



Following advice from the moderators of keeping inputs short ActionAid's 
submission on trade is divided into 4 sections including this Introduction.

1.      
        Introduction
2.      
        Northern Influence
3.      
        Developing country policies and priorities
4.      
        The role of private sector and trade

I do hope that inspite of the late submission we will be able to contribute 
positively to the discussions.  

Introduction

The context of this submission, in part, is framed from an earlier ActionAid 
International contribution on 'growth and poverty' and the important role of 
agricultural small-holders, particularly women, as an engine of growth. This is 
reproduced in Box 1. ActionAid believes that policy makers should be placing 
greater emphasis on the links between trade issues at the macro-level (such as 
northern subsidies, liberalisation, trade and PRSPs, structural adjustment, 
oversupply and depressed prices, the increasing corporate concentration of 
trade) with issues at the national level (ie supply side constraints) and at 
the micro-level (water shortages, productivity, land, credit etc). Some of 
these issues are covered here, whilst others are covered in other ActionAid 
submissions (see for example 'land reform' and 'micro credit').

Box 1

Agro-ecological model of agriculture as a possible solution? 

Mechanisms of wealth and income concentration, land concentration policies, 
income transfers from the countryside to the city, the perverse effects of 
adjustment policies and technological changes in productive activities, have 
expanded the scourge of poverty and hunger in Brazil.  The Predominance of an 
agricultural production model geared to export-oriented monocultures and the 
absence of land, agriculture, and credit policies geared to family farming are 
the main causes of lack of food and restrictions to poor people' access to food 
consumption.  This model leads to the expulsion of millions of rural workers 
and family farmers from the countryside, increased unemployment, and expansion 
of the informal job market in urban areas, leading to the current critical 
situation.

ActionAid International Brazil works in partnership with two main networks 
(Trade and Regional Integration Network and the For a Brazil Free of 
Transgenics) on key food security issues nationally.  They hope to implement a 
broad food security campaign that examines the impact of agricultural trade 
policy on food security and the feasibility of family agriculture.  They also 
encourage the Brazilian government to design agricultural trade policies for 
the domestic market and promote international agreements that favour the 
food-production agro-ecological model. 

Agriculture within the wider policy context 

ActionAid International's concern with food and hunger amongst the most 
vulnerable leads to a concern to understand and address the causes. Women are 
often marginalized, with very little if any access to, and control over land, 
and exploited as lowly paid seasonal wage labourers. Agriculture sector can be 
an engine for growth, especially if it focuses on smallholder women farmers.  

Solutions lie in broader food and agricultural systems and policies.  ActionAid 
International believes poverty eradication cannot be achieved without 
addressing hunger and food security.  Viewing the agricultural sector purely 
from the perspective of a vehicle for growth, for example through market-led 
privatization of land, can lead to further marginalisation of poor farmers. 
Similarly concentration of market power and control of the food system by few 
international and national corporations, and a bias towards 'big agriculture' 
could deepen hunger. 

International policies favour the large farmers and through trade 
liberalization rules (at regional and global levels), can bar national policies 
protecting agricultural and economic sectors judged to be in the national 
interest. Improved market access generally favours those in a position to 
exploit international markets, for example big landholders over the landless 
and small holders. Trade of itself will not provide the solutions to hunger and 
food security, neither will purely protectionist and localization policies.  
Similarly agricultural policies alone will not provide answers, industrial 
policy is important too.

Tim Rice

Food Rights Policy Officer
ActionAid International UK
Hamlyn House 
MacDonald Road 
London N19 5PG 
Ph: 44 207 561 7560 

 


ActionAid's vision is a world without poverty in which every person can 
exercise their right to a life of dignity. Registered Charity No. 274467
www.actionaid.org.uk 

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