Global Trade - Agricultural Dilemma

Global Trade – Agricultural Dilemma

November 4, 2013

ECN 311 Managerial Economics

Global Trade – Agricultural Dilemma

Over the last decade global trade has significantly increased. Global trade has boosted sustainable growth to the underdeveloped countries and increased flow of capital investments. While global review of free trade policies and liberalization are important in trading across borders there are significant problems regarding the agriculture in global trade of developing economies. People of developing countries are facing poverty because of their governments. By disbanding their rules and forming new ones we can help to regain their food security and foreign receipts of economies. This alone would help to bring down the poverty levels and enhance fairness between citizens. Free trade and liberalization sparks economic growth and helps to reduce poverty in developing countries and is needed in order to enhance global trading.

The issues in global agricultural trade have been around for many years with trade in less developed countries. It was not until the 20th century that the problems became more of a global concern. In the late 80’s the issues on global trade with less developed countries was sorely dismissed. Unfortunately this had ghastly effects on many less developing economies.

The challenge that policy makers have to address in the 21st century is to build policies that will address and end the inhuman cycle of poverty. Is it acceptable that we live in a world where there is such a gap between the rich states and the poorer economies? The poor developing countries’ economies that are associated with these populations often survive on a dollar or less a day. Adam Smith the father of modern capitalism stated, “No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable (Weinstein, 2008). Proposals in the 19th and 20th century to stimulate economic growth and...