Monday, March 11, 2013

11/3/2013: Food Security & Social Protection

'Gas Flyer of the Week' award this Monday surely goes to the 'never-too-close-to-reality' crowd in the UN:

You see, in the real world, vast subsidies lavished on farming sectors in the advanced economies do two things:

  1. Reduce resources available for social protection (and in scarce resources world that UN does not seem to inhabit this implies more severely binding budget constraint effects across the entire economy taxed to support what often amounts to landed gentry and large famers), plus
  2. In emerging and middle income economies, subsidies paid out in advanced economies imply reduction in trade flows in agricultural goods from poorer states to richer ones (which in turn reduces economic activity in the former states, increases costs of food in the latter states and reduces resources available for social protection across the board).
So 'food security' hardly has anything positive to do with social inclusion, but a load of negatives...

Go figure, UN thinks differently. Then again, they thought few years back that Iran and Syria were human rights defending nations too...

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