Leaders at the World Summit on Sustainable Development (WSSD) should address the untenable situation of agricultural subsidies in the North, World Bank vice-president Ian Johnson said on Monday.
African agriculture had to be given very high priority at the WSSD, he said at a news conference in Sandton.
”Getting growth in Africa means developing agriculture.”
Subsidies in the North presented a major obstacle in this regard, Johnson said.
The $350-billion spent on such subsidies annually was not putting taxpayers’ money to good use, he said.
”We are not against subsidies, but against inefficient subsidies.”
Across-the-board subsidies, which were not targeted at specific groups like the poor, tended to be taken up by the elite, Johnson said.
In the past the World Bank had not advocated as strongly against these subsidies as it should have, he said. It had now set up a department to do research on the matter.
But he added: ”We are not negotiators. We can use moral persuasion based on a solid analysis.”
The matter of subsidies was not the only barrier to the growth of African agriculture.
Rural infrastructure had to be improved, as had market systems. Existing and new science and technology had to be applied.
African agriculture needed to be improved in a way that respected the environment and social responsibility, Johnson said.
”There is a major challenge ahead for Africa. We want to do whatever we can.”
He said that at the summit heads of state should articulate a vision leading up to 2050.
At plausible and relatively conservative growth rates, the world economy would have tripled to $140-trillion by 2050.
”A $140-trillion world simply cannot rely on the current production and consumption patterns,” says a World Bank report released at the news conference.
”A major transformation starting in the rich world will be needed to de-couple growth and environmental impacts, and radically change the composition of the world’s output toward high input efficiency and environmental responsibility.”
Subsidies, mispricing and inadequate taxation of environmentally damaging products should not be allowed to continue to provide the wrong incentives for rich-world consumers and producers, the report says.
”…If we add to this picture a wealthier developing world, we can expect negative consequences for both the quality of the environment and its ability to sustain further growth.”
Johnson said the underlying issue of the summit was addressing crippling poverty.
”Poverty is at the heart of unsustainable practices.” – Sapa