It is important to include small businesses and farmers in international agricultural trade. (wattpublishing, Creative Commons)
We say we live in a globalized economy, in which the actions of one country affect another, but in which we also work together.?For a globalized economy to work efficiently, each country must contribute to the "give and take" exchange between countries. However, we need to realize that not all countries have the same things to offer. Given these differences, we have to come up with the best exchange programs between countries to make globalization work efficiently.When we look at the current issue of hunger around the world, it seems that countries are leading with the "take" approach rather than the "give" approach. According to Global Issues, a research-based organization that provides information to people around the world, currently "over 9 million people die worldwide each year because of hunger and malnutrition"; out of this nine million, five million are children. ?"Approximately 1.2 billion people suffer from hunger (deficiency of calories and protein)"; to top this, food wastage rates are high. In the United Kingdom, "30-40% of all food is never eaten"; in the U.S., "40-50% of all food ready for harvest never gets eaten." Some countries are essentially wasting food while citizens in other countries are living in poverty and dying due to a lack of food.
To change this dichotomy, I suggest that we change the way we trade food. We need to give opportunities to small businesses and farmers to trade internationally. Currently, agricultural trade is set up within an international framework that makes it hard for small farmers and businesses to be involved on a large scale. International organizations, such as the World Bank and the World Trade Organization, set high parameters for trade to develop for smaller businesses. Because huge agro-industrial sectors dominate the agricultural fields of research and technology, smaller businesses choose not to invest, and farmers do not have adequate capital to invest.
This monopolized structure to food trade likewise makes it too expensive for poorer countries to afford food. This is ultimately one of the biggest causes of starvation. People are not able to afford food, or are not in an area that has easy access to food. Adding to the problem of the paramaters for trade in the agricultural industry that make it more expensive for people producing food to participate in trade, the big businesses holding a monopoly on international trade can offer whatever price for their product they deem necessary - and often these prices are high.
Illustrating the flexibility businesses have in setting these prices, if one travels to a grocery store, then to a distribution center, one can see that the prices differs greatly. A bag of potatoes is available in a distribution center for one-eigth of one-half of the price of the same bag at a grocery store. This discrepancy reveals that businesses have a substantial degree of control over prices to offer more affordable food. Although?I am not saying that, as a result of this revelation, we should call for a worldwide price cut in food, I am saying that we need to open up the doors for all businesses alike to be able to offer more affordable food.
If small businesses and farmers were encouraged to participate in this globalized economy, their addition to the economy would remove the monopolized pricing structure of international agriculture trade.?Some large businesses might argue that this would not be fair, because there would be hundreds of companies under-cutting their prices. But, in a globalized economy, we need to create a systemic approach to trade between countries that allows for growth and development. The first priority for anyone producing food should be making sure that everyone has access to it; only if they do could prices be subjected to businesses' desire for profit. But the life of an individual outweighs the benefit of making more profits than needed.
So, big business might not support this change, but they must consider that if the market were to be open to smaller business, there would be a greater likelihood that people that ordinarily have difficulty in attaining food for their families will benefit. Because food from big businesses is often channeled through large retail stores, areas in which these do not exist or where access to food is limited need their own suppliers of food - this is where small businesses can come in. Approximately 1.2 billion people around the world suffer from hunger, and can be fed by small businesses who will not overlook this crucial sector of the market.
Creating a dual system of international trade cannot hurt. The shortage of food and the inefficiencies of production can be alleviated by adding small businesses and farmers directly connected with the development of food, rather than big businesses removed from production, to the system of trade. Food is a basic necessity of life. To alter the globalized approach to food trade, we need to enforce a true system of "give and take," in which everyone can contribute to alleviating starvation. Food is a necessity, and it can only become a commodity when the basic necessity has been fulfilled - profit should not drive the motive for trade until food becomes a commodity. We need to first offer opportunities for small businesses and farmers to?bridge the gap between starvation and food affordability.
Source: http://www.neontommy.com/news/2012/12/importance-small-business-international-agricultural-trade
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