Sunday, 23 September 2007

COMPETITIVENESS DRIVES EFFICIENCY,HAS THE WEST LOST IT?

The global agricultural face has stagnated in all its unethical forms thanks to the so called huge producer countries with financial clout. Maintaining of a huge “Iron curtain of agricultural subsidies” has helped stunt agricultural export ambitions in the developing countries exacerbating deplorable poverty situations of many an Agricultural dependent economy.

The dimensions of doing business have not been spared by the woes that have bedeviled much un dynamic and gradually changing business.

Does the western agriculturalist need to borrow a leaf from other entrepreneurs?
Yes,
Relying heavily on handouts from their governments is such an unethical practice.
Agriculture in the west ought to borrow a leaf from other global corporations. Apparently many automobile, technology corporations have had a run for their money have had to adjust operations to maximize the global demand for efficiency.
The dynamism is rife with all the hallmarks of competitive advantages witnessed in all areas of cooperate enterprise.
Outsourcing with all the risks involved doesn’t spare huge companies, like Mattel have taken the gamble to import from Chinese producers not because they hate employing Americans but it’s the only choice on competitive global trade practices, not alien of scandals of substandard goods though but more still is no quick fix for the cheap good’s demands by customers as they drive things. Such high flyer companies have to shift to low cost production localities as it’s a matter of survival and not otherwise.

Hike in global food prices particularly cereals has caught on and such are the result of protectionism in the west , and because there aren’t enough producers despite the land for agriculture lying en mass in poor countries not enough harvest to dump on the market to quell the situation. The years of neglect without the desire for the west to buy our food or shutting out our extractive industry and therefore invigorate us to produce has left us lying low, unlike in the Oil business nothing much can be done for a quick fix.

As vast farmlands addicted to fertilizers and mind-boggling capital-intensive expenditure continue to thrive propped up by western governments, no body thinks of moving the locations to low cost countries like most other industry ,why? The answers are right in your face Governments there hate the idea as many of their people will loose jobs. We believe they will loose agricultural jobs where they are not competitive enough only to rediscover them in hi-tech firms if their governments real mean it.
One does not have to be an and agricultural economics professor to realize that time has run out for the practices. Producing with low input would not allow for the sudden bulging of the food prices, were it not for the closing of eyes to low cost production destinations. It should be economically feasible to use the less costly agricultural lands in developing countries to export to the west and only when the capacity to produce there is properly maximized or exploited, should they then revamp productions at home.
The cumulative effect of utilizing all land resources in low cost locations and ultimately blending in high cost locations would cause prices to lock on an average and no indiscriminate scarcity and over pricing.

Under the guise of protecting the jobs of its citizens the west seeks to tighten the noose on its neck. Alienating themselves from subsidiaries devouring almost half of their expenditure into training manpower to have a competitive edge in technology and financial services where they could be well versed and move away from more diverse and stiffly competitive fields where they have no clout.

The west is continuously being highly rated in unemployment and uncompetitive ness due to unbalanced social spending skewing it on subsidies while the other freely operating countries take their place. Look at countries like Vietnam where they fare on the global competitiveness levels, fare better than much more robust economies.

On one part unfair agricultural practice has exacerbated the chronic poverty for most developing economies, but also serves to turn tables on the west having failed to invest where they ought to when time was on their side.

Right now global food production is hovering around constancy with Asian exponential growth in affluence and populations, demand for food and fuels will ultimately go through the roof. So the west should be ready for the bite energy and food wise and this will definitely drag in other sectors of their economies, I mean recession will be imminent.
So is it in the interest of the west to cling to agricultural subsidies at any cost or its high time they gave in to WTO majority demands to reforms? This would serve to smoothen world trade talks stalled and lacking steam for years now. It despicable to stick to their guns as they will ultimately cause harm to their natives in a long run and those of the developing countries in the short run

1 comment:

Anonymous said...

every body seems to point in that angle but what baffles me is the imminent dis respect of poor countries please while rich ones plunder our resources

Geaorge Nyaronga
Open university of Tanzania