external influence in the making of development ... - FES Ethiopia

South conflict, but a fundamental social conflict that needs to be addressed. It is a
conflict between different models of agricultural production and rural development, a
conflict that exists in both the North and the South. It is a conflict between centralized
corporate-driven, export-oriented, industrial agriculture versus de-centralized , peasant,
and family farm-based sustainable production primarily oriented towards domestic
markets. (www.viacampesina.org, article 286).
While rich countries keep their markets closed, developing countries have been
pressurized by the IMF and WB to open their markets at breakneck speed, often with
damaging consequences to poor communities. As a result of pressure by the WB and
IMF including northern governments, the developing countries have rapidly opened up
their economies than the rich countries. As a result the average level of import tariffs
have been halved in SSA and South Asia, and cut by two-thirds in Latin America and
East Asia.
Africans in turn know they need to diversify their exports from basic crops such as coffee
and cocoa into products which earn more money such as clothes, textiles and
manufactured goods. But Africans could also earn more from basic crops if they were
allowed to process these before they export them. For example, Ghana can export raw
cocoa beans duty free to Europe, but a 25% tariff is imposed if they process that cocoa
before exporting it to Europe. But the processing (canning, roasting, labeling) helps a
country earn more money and develop its manufacturing base — and that allows its
economy to grow. While fair trade could be Africa's ticket out of the vicious cycle of
poverty, unfair trade rules like these trap Africa at the gates.
These double standards have to end. It is important to have rules — but not ones only
written by the rich. The World Trade Organization (WTO) is the place where these rules
are written. But of the 38 African nations which are members of the WTO, 15 nations
have no representative at all at the headquarters in Geneva, and 4 nations have an office
of only one person. Most rich nations have dozens of staff to make their case, and more
experts at home. Poorer countries often aren't able to participate fully or even analyze
what the effect of proposals on their economies would be
How do countries cope?
Various developing countries which are quite comparable in terms of their natural
resources (land, water, arable soil, minerals, climate etc.) and social structures have over
the past thirty years shown strikingly differing records of economic and social progress.
Similarly, countries facing some similar external factors, have faired differently in
development terms, because of internal dynamism differences.
This shows that historical burdens, adverse international economic conditions such as
falling raw material prices or other external factors, though important, do not have a
decisive impact on the achievement of a higher quality of life in the countries concerned.
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