A victory for African farmers
Humanitarian aid group CARE has opted not to accept $45 million in government aid. Repeating that, a non-profit group has turned down $45,000,000 from the U.S. government to supply food from Africa. The reason? The "heavily subsidized American farm products" drive down the cost of African-produced crops, which negatively affects African farmers.
Under the current system, the money raised through selling the American crops is redistributed in Africa into anti-poverty programs. The Government Accountability Office has already declared that this program is inherently inefficient, but little has been done to stop the program because of all the special interests involved - farmers, shipping companies who move the food to Africa, and particularly the non-profits whose existence is financed by the plan (yes, that's right, a "special interest group" is more than just Big Oil and lobbyists).
Other groups who work in tandem with CARE are not pleased with CARE's decision, but Progressively Right applauds the effort. Even Jimmy Carter, who I rarely find myself on common ground with, agrees:
Former President Jimmy Carter, whose Atlanta-based Carter Center uses private money to help African farmers be more productive, said in an interview that it was a flawed system that had survived partly because the charities that received money from it defended it.
But doesn't the competition of the American food with the African food promote innovation? Isn't that what a market economy wants? Normally, yes. However, this program sells subsidized food at below market value. African farmers can't make an honest living because they are forced into dishonest competition.
This case proves once again that just because government has the best of intentions does not mean it will get the best of results. Congratulations to CARE for standing up to this program and, really, to its own mission. I hope this will force a more robust of both foreign aid and of our own domestic farm subsidies.