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LATEST NEWS UPDATES | Free trade worsens food security

Free trade worsens food security

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published Published on Oct 31, 2010   modified Modified on Oct 31, 2010

Liberalisation of agricultural trade has worsened food security of South Asia, a study says. The report by Mahbub ul Haq Human Development Centre (MHHDC), an Islamabad-based research organisation also found that farm trade liberalisation increased the number of hungry people by 28.8 million.

Private research organisation, Centre for Policy Dialogue (CPD), organised launching of the report, 'Human Development in South Asia - 2009: Trade and Human Development' in Dhaka on Thursday.

The report also found that other than India, net food export declined between 1990s and 2006 for all other countries of the region.

MHHDC study found that the female participation in agriculture had also declined during the period. However, the total number of people engaged in agriculture increased due to a rise in food price, migration of male workers and lower wages for women.

The study said that liberalisation of agriculture in South Asia has created more problems than benefits for rural communities.

According to the report number of rural poor increased by 22 million from 1993 to 2002.

The study showed that cost of farm production increased fivefold between 1980 and 2005 but the wages lag behind. The study concluded that it meant the rise in costs was mainly absorbed by costly inputs not wages.

Researchers found that the combined impact of costlier inputs and higher farm subsidies in Europe and America has reduced competitiveness of the small farmers in South Asia.

The study found that as an impact of rising input cost and dwindling competitiveness, poor rural communities have become more vulnerable to poverty.

The MHHDC report identified Bangladesh as the only country in South Asia to reap benefits of trade liberalisation in the manufacturing sector.

Researchers found that opening up the manufacturing sector has failed to create jobs in the region.

Growth in service sector has managed an impressive growth of 22.6 percent during 2005-07 in the region.

The report recommended that least developed and developing countries should have the opportunity to calibrate their own policies regarding trade liberalisation for their own benefit.

It also stressed on the need to improve trade related infrastructure in the region to increase intra-South Asian trade.


The New Nation, 31 October, 2010, http://nation.ittefaq.com/issues/2010/10/31/news0956.htm


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