Sunday, April 30, 2006

Setting a bad example



Sit down with a farmer in Moldova and he’ll tell you all the things wrong with Moldovan agriculture – bad governmental policy, lack of market access, beauracracy, high taxes, low prices for produse, etc. etc. etc. It’s not that much different than farmers anywhere. However, when you ask what should be done to resolve these problems, their first response is “well, it would be good if agricultural were protected like it is in developed countries – it would be good if were guaranteed a price before we planted by the government”… uhhh excuse me? You named high taxes, poor government, beauracracy, and lack of market access and you want the government to work more closely with you? You mean like in Europe – the place that’s keeping the prices that you face internationally unreasonably low? Well, thanks Europe, you’ve effectively convinced markets with inherent financial advantages like Moldova that they can’t compete without government subsidies. Instead of saying “they should lower taxes” or “they should negotiate better bilateral agreements with neighboring countries” or “they should make it easier for us to do business”, farmers here are looking for handouts and a 9 – 5 like job that includes guaranteed wages. You might say that’s because of their communist past, but I think as much as anything it’s because of they have heard too many good things about the European system without really understanding the consequences of huge agricultural subsidies (both in country and internationally). You have to argue for hours before they believe that in America farmers work hard or actually deal with uncertain markets. Although their viewpoint is understandable, it is also unfortunate, and I hope that the hand-out attitude goes away before they lose a real good chance at making their mark on international markets.