Poverty& International Trade

Agenda Oxfam Oxfam Let’s talk about globalization Let’s talk about globalization Let’s talk about poverty Let’s talk about poverty Connections between trade and poverty Connections between trade and poverty Solutions Solutions Jeopardy! Jeopardy! Get involved Get involved

Introduction What is Oxfam? What is Oxfam? Oxfam Canada builds lasting solutions to global poverty and injustice. We work with allies in Canada and around the world to change the policies and practices that perpetuate human suffering. We support organizations in poor communities overseas in their struggle to secure basic rights. Oxfam's advocacy and campaigns for just policies are rooted in the knowledge and experience gained in that struggle.

The Label Game Find a partner Find a partner Check the clothing tag at the back of each other’s garments. Identify the country where the clothing was made, and write that down on the Post-It note. Check the clothing tag at the back of each other’s garments. Identify the country where the clothing was made, and write that down on the Post-It note. One person take both Post-It notes and place them on the map One person take both Post-It notes and place them on the map

What is Globalization?

The Story of the Strawberry…

Polyp, The New Internationalist, Great Britain

Another 1.2 billion people can’t get enough vitamins, minerals and proteins in their diet. K.T., The Telegram, Newfoundland

Almost one person in three is affected by malnutrition.

The North Canada The U.S. Europe Japan The South The Third World Developing Countries The 3 billion people who try to survive on $2 a day or less live in the South / Developing Countries. Australia N.Z.

The biggest reason for hunger is POVERTY.

Q. But what does trade have to do with poverty?

The Great Trade Robbery Unfair Trade Rules Trade barriers into rich countries Trade barriers into rich countries When poor countries send goods to rich countries, they face tariff barriers that are four times as high as rich countries face when sending their goods to poor countries. These barriers cost poor countries 100 billion dollars a year – twice as much as they receive in aid. When poor countries send goods to rich countries, they face tariff barriers that are four times as high as rich countries face when sending their goods to poor countries. These barriers cost poor countries 100 billion dollars a year – twice as much as they receive in aid.

The Great Trade Robbery Unfair Trade Practices SUBSIDIES SUBSIDIES For the time being, let’s stick to talking about subsidies… For the time being, let’s stick to talking about subsidies…

Nobel prize winner Joseph Stiglitz

Africa

made in Mauritius designed in Italy sold in Paris This is Globalization

America and Europe subsidize their cows at $2 a day.

Subsidies for Farmers bring down the selling price of crops.

The Japanese government spent $7.40 a day on each cow raised. In 2003 Anthony Jenkins The Globe and Mail Canada

Most of the more than 2 billion people who depend on farming for income try to survive on $2 a day or less.

Northern governments spend a total of $1 billion a day of taxpayers’ money on agricultural subsidies.

Governments in Developing Countries are unable to match these subsidies.

Approximately 500 farms close down every week in the United States.

If the present rate of farm closures continues, in 40 years there will be only seven huge farms left in the United States.

Farmers are using all the money they make on farming to pay the interest on their farm debts

Subsidies are not working for most farmers.

Subsidies to U. S. Farmers 10% 80% of farmers 73% of subsidies 15% of subsidies Only 12% of subsidies

Most of the money is going to very few American farmers. Subsidies are huge.

$600,000 per farmer Irrigation

Only farmers with subsidies can continue to make money when the price they receive for their crops falls below the real cost of production. Advantage!

What distinguishes highly subsidized farms from other farms? They are very large. They are often owned by corporations. They grow crops for export.

Government Subsidies Out of every American dollar spent on subsidies 90 cents goes to farms producing 5 export crops.

Sold below the real cost of production in the U.S.

U.S. Subsidies 2001 CropProduction CostsExport Price Wheat$6.24 $3.50 Soy beans Cotton Losses are paid for by American taxpayers.

Ethical Problem Agribusiness corporations are making a lot of money. Farmers can’t make enough money to survive.

Bennett, The Christian Science Monitor, United States

Corporations are not people! They do not have a built in conscience that guides their behavior.

Profits! Growth!

In their pursuit of growth and profits, corporations don’t intend to mistreat farmers. Polyp, The New Internationalist, Great Britain

Ensure essential services are available to the rural poor Advance food and income security in developing countries Allow poor countries to determine the pace and scope of opening their economies Ban all export dumping of farm produce Promote sustainable rural sectors, both in developed and developing countries, through proper regulation and targeted subsidies Introduce mechanisms to achieve stable and fair prices on commodity markets Let’s Make Trade Fair

Sign the BIG NOISE Petition!!

JEOPARDY!

What you can do Be a conscientious consumer. Be a conscientious consumer. Read the label Read the label Buy fair trade Buy fair trade Be aware. Use your brain. Be aware. Use your brain. Get educated: read the news, go online Get educated: read the news, go online Talk about issues with your friends (and enemies) Talk about issues with your friends (and enemies) Act locally Act locally Volunteer Volunteer Support a cause you believe in, any way you can Support a cause you believe in, any way you can Act globally Act globally Write letters Write letters

Fair Trade pay a set minimum price that covers the costs of production pay a set minimum price that covers the costs of production Long-term cooperation Long-term cooperation Promote sustainable production practices Promote sustainable production practices

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