Food at the mercy of the market
By Shadaba Islam
AS world food prices continue to soar and developing countries’ struggle to feed their hungry and angry populations, the European Union has become entangled in yet another acrimonious internal debate on the future of its heavily subsidised farm sector.
Significantly, the discussions, likely to last for several months, could well have a negative impact on efforts to revitalise the efforts of the World Trade Organisation to clinch a much-sought-after deal on global trade liberalisation.
The EU quarrel pits France and Germany, the EU’s most powerful nations, which want to safeguard — and reinforce — the bloc’s controversial Common Agricultural Policy (CAP) against Britain which is demanding a dismantling of CAP. The debate, coming only days ahead of the Irish referendum on the EU reform treaty on June 12, has assumed controversial political overtones, with many fearing that influential Irish farmers, angered by attacks on CAP, will vote against the EU treaty, plunging the bloc into another damaging political crisis.
Asian governments, focused on their own food policies, must also pay some attention to the EU wrangling over farm practices. For one, given its protectionist bias based on high tariffs and quotas, the death or survival of CAP will have an impact on future food exports from developing countries. Also, as poor nations strive to put their agriculture sector in order, it is worth spotlighting that despite recent reforms, CAP continues to encourage an over-production of food which, once it is dumped on world markets, damages the interests of farmers in developing nations.
Even more significantly, any EU move to suspend further CAP reform will slow down the current WTO attempt to further liberalise world trade in agriculture goods, a key focus of the current Doha trade round.
The coming weeks in Brussels look set to be dominated by the debate over agriculture. Mariann Fischer Boel, the European farm commissioner, will formally announce her proposals to overhaul CAP on May 20 in the face of a Franco-German alliance to defend the status quo against reform attempts.
Fischer Boel calls her package a ‘health check’ for CAP, rather than a fully fledged reform. The proposals aim to trim subsidies to farmers, divert more money to rural development, and get rid of a range of market intervention measures, which, she says, should be used only as a ‘genuine safety net’.
But even before the proposals have been announced, Horst Seehofer and Michel Barnier, the German and French farm ministers, have indicated their opposition to any radical changes to the EU’s farm support system. Barnier’s recent remarks indicate strong support for the EU’s farm subsidies and market-support mechanisms. The French farm chief has even recommended that countries in Africa and Latin America should adopt a version of CAP to curb the escalating problems of food supply and price rises.
The developing world should draw inspiration from Europe and form self-sufficient regional agricultural blocs funded with a redirection of development aid, Barnier said, adding that he would not allow Europe’s system of subsidies and barriers to trade to take the blame for ‘disorder’ surrounding the commodities spike in prices and associated unrest in some countries.
“What we are now witnessing in the world is the consequence of too much free-market liberalism,” he said. “We can’t leave feeding people to the mercy of the market. We need a public policy, a means of intervention and stabilisation”. France wants to use its rotating presidency of the EU, which starts in July, to kickstart a debate about the future of CAP after 2013, when the current funding regime runs out.
Germany’s Seehofer has sided with Barnier and argues that subsidies should be sustained for European farmers and that China, India and the US must adopt higher environmental and health standards if they want to export food products to the EU.
Both Barnier and Seehofer are on tricky ground, however. Their calls to toughen up food safety controls are likely to be disputed by the WTO and could also prompt retaliation from trading partners. EU efforts to block approval for genetically modified crop varieties, for instance, are a major transatlantic trade irritant.
In stark contrast, Alistair Darling, the UK’s finance minister, has urged EU finance ministers to support the dismantling of CAP because it keeps EU food prices above world market levels. Darling also wants to end direct payments to farmers and has denounced the fact that the EU continues to apply very high import tariffs to many agricultural commodities at a time of significant food price inflation.
The chancellor has called on the European commission to give urgent consideration to extending the suspension of import tariffs on grains and to reduce or suspend import tariffs that apply to other agricultural commodities.
EU states are also struggling to justify their efforts to promote biofuels in the face of critics who say such policies are worsening the global food crisis. Fischer Boel recently rejected allegations that EU policies to promote biofuels — by a commitment to raise the share of biofuels in transport from current levels of around two per cent to 10 per cent by 2020 — are to blame for rising food prices.
“Those who see biofuels as the driving force behind recent food price increases have overlooked not just one elephant standing right in front of them, but two,” she said recently, adding that the rising food demand and dietary shift towards meat in emerging countries like China and India, and the bad weather that hit the EU, US, Canada, Russia, Ukraine and Australia in 2006 and 2007, have each had ‘an enormous impact on commodity markets’. Other ‘influences’ include increasing speculation on food commodities, she said.
Her remarks came one day after Jeffrey Sachs, special advisor to the United Nations secretary general, told members of the European Parliament that EU and US policies to promote biofuels ought to be rethought. “These programmes were understandable at a time of much lower food prices and larger food stocks, but do not make sense now in a global food scarcity condition,” he insisted.
Sachs said one third of the US maize crop in 2008 will be used to fill petrol tanks — representing a ‘huge blow to the world food supply’. But Fischer Boel insisted that the contribution of EU biofuels policy to the current global food crisis is a mere ‘drop in the ocean’.
The debate is likely to get fiercer during the year. No EU deal on CAP reform is likely until at least November when France, by far the largest beneficiary of EU farm subsidies, will be in charge of EU policymaking.
The writer is Dawn’s correspondent in Brussels.


Has media freedom arrived?
By Zohra Yusuf
THE media in Pakistan had barely recovered from the blows inflicted by the proclamation of emergency on Nov 3 when another attempt to curtail its freedom was launched. This time it was by the Supreme Court of Pakistan.
The restrictions that some of the judges tried to impose on the private television channels revealed a lack of understanding of the nature of the electronic media itself.
Reacting in particular to a report carried by Geo News and Jang about a supposed meeting between the interior secretary and three judges of the Supreme Court, the court took suo motu notice and summoned the bureau chief of Geo News, Islamabad. The judges’ stance was the meeting never happened.
Also irked by the daily debates on the judicial crisis, the judges ordered television channels to get clearance from the registrar of the Supreme Court before producing any programme on this controversial issue. However, such a restriction was a non-starter. As Mazhar Abbas, secretary general of the PFUJ, pointed out in a television interview, this kind of a requirement would mean queues outside the office of the SC registrar with still no clear guarantee of what would be said (or remain unsaid) in a live television debate.
Not surprisingly, the Supreme Court had to amend its order substantially, limiting the restriction to the use of derogatory remarks against judges on television and in the press.
Journalists had heaved somewhat of a sigh of relief when the new coalition government cancelled all the amendments made to the Pemra ordinance at the time of the proclamation of emergency last November, even though the demand for a major overhaul (if not an end) of the ordinance remained. However, the fact that the honeymoon between the media bodies and the government has hit the rocks already may be sensed by the allegations of official threats made by some journalists — those belonging to the Jang/Geo News group, in particular. The prime minister’s ubiquitous troubleshooter, Rehman Malik, as well as unnamed friends of the PPP co-chairperson, Asif Zardari, have been accused of threatening journalists and talk show hosts. Rehman Malik, though, has denied making threats.
Successive governments have not learnt the lesson that attempts to restrict the media is a recipe for disaster. In Pakistan’s recent history, such attempts have had a negative impact on an independent electronic media still trying to find its feet.
The most serious threat to the freedom of the media came with the emergency imposed by a desperate chief of army staff. The period of emergency meant turbulent days for the media as the private channels in particular struggled to retain independence while facing severe financial setbacks. Positions hardened and objectivity often took a back seat. The private television channels began to take partisan positions — and this disturbing trend continues even with the induction of a democratically elected government.
The frenzied, frenetic pace of news coverage — and worse, the aggressive approach — left the coalition government with little breathing space. From the issue of who would be chosen to be prime minister to the speculations on the restoration of judges, politicians (particularly of the ruling coalition) were confronted and practically forced to make statements they may not have made given the opportunity to think a little on the issue.
This, of course, does not condone the politicians who tend to perform for the media and love to listen to the 30 seconds or so of sound bite allotted to them. However, the attitude towards news reporting shows some unpalatable tendencies. Channels, for example, started a countdown as soon as the Murree Declaration promising the restoration of judges within 30 days was signed.
Similarly, Geo now seems to have made provocative songs a regular feature of its new bulletins, satirising situations such as Amin Fahim’s shattered hopes of being prime minister to the rifts between the PPP and the PML-N.
However, there are many positive developments, probably countering the somewhat negative ones. And among the reasons for hope is journalists’ resistance to dictatorship.
Following the emergency, journalists’ associations, supported by civil rights groups, led a sustained protest movement in the face of the government’s intransigence and were often the victims of state violence. Television talk shows became road shows, with banned hosts conducting their programmes before live audiences across the country. The culture of resistance, dormant to an extent, was suddenly revitalised. This courageous resistance was honoured by the New York-based Committee to Protect Journalists (CPJ) when it gave the prestigious 2007 International Press Freedom Award to PFUJ’s Mazhar Abbas.
The World Press Freedom Day observed on May 3 provided ample opportunity for the media and media commentators to analyse and report on the state of media freedom in Pakistan. The role of journalists in upholding press freedom was rightly acknowledged. However, the day should also have been an occasion for a bit of soul-searching. After all, what have we made of the unprecedented freedom of the media?
On a balance sheet, the state of the media in Pakistan will probably give a favourable picture. But weaknesses remain. Foremost among them is the lack of professionalism. The unprecedented and fast-paced growth of the electronic media came with little investment in training. ‘Experts’ were instantly created and given the time and space to expound on issues without the depth of knowledge that experience brings. This remarkable growth has also led to an unhealthy competition where to be first with ‘breaking news’ often means going on air with unsubstantiated news.
Today, more than ever before, there is a need for an independent complaints commission for all media. A responsive commission will deflect the kind of attacks seen on the media in recent days. Journalists must strengthen their role as watchdogs. However, they should bark and, in spite of having teeth, refrain from biting.