World as I Think

We always have these fancy arguments about why we would not want to pay taxes or to be politically right why we would want to manage our taxes properly. We would rather blame the government institutions for it, Neither do we get social security nor great infrastructure, the entire system is corrupt, there is no point paying taxes as it does not reach the right destination.

We always want to argue "Why should I pay taxes when most of the country does not pay taxes?"Rest of the country evades taxes and whats wrong if we only manage them?. I don't get facilities like what the citizens of US or any westerner cherishes. A fair argument, isn't it? We always compare the developed countries for everything else?.

Lets for a change take the example of the developed world in terms of what they do to their agriculture sector. In the US, during the year 2003, agriculture exports continued to be sold well below the 1970 and 2000, EU share in agricultural exports increased from 28.1 per cent to 42.7 per cent. France increased its share from 5.7 per cent to 8.1 per cent, Germany from 2.6 per cent to 5.9 per cent and United Kingdom from 2.7 per cent to 4.1 per cent

The world is expected to behave like an ostrich when it comes to the WTO violations from the world's only super cop. Whether it is the additional federal support of US $180 billion for the next 10 years that has been promised for American farmers, or the grant of US $110 million for export promotion that has recently been announced, the WTO seems helpless. There are 6 million farmers in the US compared to 600 million in India.

The total quantum of farm subsidies given by the developed countries works out to 340 billion US dollars a year or almost a billion dollars a day.

Impromptu, you might want to say this, Even the Indian government gives subsidies to the farmers, they get free electricity, free seeds, and fertilizer subsidy and sometimes they even get a waiver on all the loans. Very true, but did you know this, in effect the farmers have to incur a negative subsidy(Measured by Aggregate Measure of Support), i.e the farmers have to forgo thier income. If only the government procured their farm products at the prevailing global prices or marginally increase the minimum adminstered price for the commodities, their lives would be better.

Now, who is enjoying food at lower prices? of course, you and me who have our food subsided by the farmers. Next time, while we eat, lets remember the 600 million farmers out there who are subsidizing our food.

Labels: economics