"Resuscitating Doha is essential to right the rigged rules of trade, but what's been simmering on the WTO stove will simply not deliver for poor countries, said Oxfam America president Raymond C. Offenheiser. "The financial crisis, which started in developed countries but is taking its worst toll on developing countries, should be the impetus for a change in course."
In a new report released today called "Empty Promises," Oxfam details how the Doha Round has become an exercise in prying open developing country markets rather than an effort to rebalance decades of unfair agricultural and industrial trade rules. In the midst of a global economic crisis, a food crisis, and a climate crisis, nations with the least blame and with the least capacity to cope with the consequent effects must not have to pay even more to enable their economies to develop, according to the report.
Over 50 million people stand to lose their jobs, remittances are collapsing, and growth in sub-Saharan Africa is predicted to fall by 70 percent this year trapping 90 million more people in poverty, because of the crisis. Food prices meanwhile remain high for poor consumers: by the end of 2008 a further 109 million people had been added to the ranks of hungry, topping 1 billion people worldwide. As the world experiences the sharpest drop in trade in 80 years, a "development" trade deal—as originally promised—remains crucial, according to Oxfam.
"Now is the time for WTO members to come back to the negotiating table, recognize that the current crisis provides an opportunity to address urgent development needs, and change the course of negotiations, much as they did nearly eight years ago in Doha," said Offenheiser. "At this time of desperate need for a change of course, the Doha Round has to step up to deliver on its development promise. There is little credit left for another failure."
The welcome political commitment from the G8 could lead to a fresh start to negotiations, but it cannot be business as usual. In the past eight years, developed countries have used the talks to continue to push to open up new export markets. Developing countries have resisted, saying they were promised a deal that would give them space to protect their farmers and new industries, an end to rich country trade-distorting agricultural subsidies, and more access to rich markets for their farmers and industries.
The widespread food price crisis has shown that food and livelihood security cannot depend solely on market forces. Development, rather than liberalization, has to be the central objective of negotiations and trade rules must respond to the needs of the most vulnerable people first and foremost, according to Oxfam. It is the responsibility of WTO member states to analyze the role of trade in the recent global crises so that the Doha negotiations take into account the new global context and contribute to a solution, rather than exacerbate the problem.
"What's on the table is no silver bullet since it continues to favor the richest and biggest farmers and industrialists in the US and Europe and sidelines the needs of the poor," said Offenheiser. "We have seen what can be done when countries find the resolve to avert problems at home, and this resolve must be translated to the multilateral trade agenda so that the much-needed conclusion of the Doha Round can be achieved in a manner that addresses developing country needs first and foremost."
]]>Five men from the Community Cooperative for Rural Development, or CCRD, an Oxfam partner organization, stood along the mill's perimeter, watching it work. Serious and proud, they admired their prize: the only certified organic rice mill in the country.
Cambodian rice farmers, long vulnerable to fluctuating prices and heavy regional competition, are looking to organic rice to help them carve out a niche in the market. As eating healthily has become more popular around the world, so has organic food. Organic products sell for a higher price than conventionally farmed food. In a country where more than a third of the population lives on less than $1 a day and more than half depends on agriculture, the organic advantage could translate into a reliable and steady income.
"The momentum is really growing," said Le Thi Nguyet Minh, an Oxfam America program officer in the East Asia office. "We need to maintain it."
Maintaining the organic momentum requires establishing farming cooperatives, which are equipped to work in the organic market. This transition represents a huge practical and emotional leap for many Khmer farmers.
The bloody civil war and subsequent genocide that ravaged Cambodia left many Khmer people distrustful of both their neighbors—and any sort of collective work, said Yann Omer-Kassin, an Oxfam Quebec field advisor supporting CCRD.
Even the words "farming cooperative" pose a problem. In Khmer, they translate into "work camp," a term that conjures up painful fears or memories of Khmer Rouge death camps. Many of the people Kassin talked to in Pursat said they were wary of joining a farming coop "because it's linked to a horrible past."
Because of these cultural sensitivities, CCRD staff work slowly and patiently to convert farmers to organic production. They spend much of their time simply building trust in the cooperative concept. They point to the tangible benefits of organic production.
Farmers are encouraged to use animal manure instead of chemical fertilizers—a requirement of organic certification. The resulting savings can be used—to grow other crops, or send children to school. If farmers use natural fertilizer, they can also prevent illness. Many farmers and farm workers get sick because they can't read the labels on the chemicals they use. Many of the chemicals are so dangerous they're prohibited in other countries.
Tang Eum, 47, a rice farmer in Pursat, said she began farming organic rice three years ago. She said natural fertilizer doesn't always produce as much rice as chemical fertilizer. But she's willing to accept that tradeoff if it means her family and friends won't get sick.
CCRD has converted at least 75 of the 1,500 farmers in its collective to farm organic. Their support is crucial. Many of the rice farmers face the same challenges organic and fair trade coffee farmers saw when they first learned about the new model. Many have farmed small plots with chemicals for generations. They need help learning new agriculture techniques so that they can someday grow as much rice as they had before.
Then they need help getting the experience, technical assistance, and market access to pull it all off.
It is a challenging task, CCRD workers said. But knowing what they do about the potential benefits keeps them motivated. Eventually they want to help local farmers not only farm organically, but take the next logical step, and sell to the fair trade market.
Fair Trade Certified™ products are high quality and grown through practices friendly to the environment. Farmers receive a minimum price even when the market price is low. According to a 2005 market study, if farmers made the transition from conventional growing to fair trade organic they could see their profits more than double.
Sitting at a wood table outside her house in Pursat, Tang Eum said she knows what she wants to do with that extra money. A mother and a businesswoman, she would use it to support her family and sell her rice.
"I want to use the money to send my children to school," she said. "And I want to buy a moto to go to the market in town."
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