Two other major allied issues remain to be resolved, despite ongoing discussions at the G 8 summits; namely, third world poverty and the EU Common Agriculture Policy (CAP). Many commentators have observed that the two problems are linked; ie subsidised CAP goods depress world prices making third world agriculture unviable. But, nobody seems to have realised that the solution of both problems are also inextricably linked.

The solution, abolish the CAP (and other WTO) subsidies but impose import tariffs on the same agricultural (and other) products imported from countries Not paying their workers a living wage. This will bring the competition onto something like "an equal playing field." How?

Firstly, the third world Exporters will not be able to flood the EU market with under cut prices.

Secondly, Exporters will be forced to pay minimum wages or suffer import duties or suffer loss of market and profit. And, that is the important driver; greed. Greed is what drives wages down; so attack the greed, and thereby simultaneously attack poverty.

Thirdly, any revenue accruing from import duties to be recycled by us (the UK and others) as financial aid to the workers of the producing countries. We distribute the aid direct to the workers through our own distribution channels.

Fourthly, the UK (individual EU members) decide what is a living wage in any particular country, and hence the level of import duty to be set. This is in no way problematical. The minimum wage in an EU member state is (x) per hour, and (x) supports a known standard of living: as say in the UK. We therefore set our own arbitrary equivalent minimum wage for each exporting country necessary to provide the equivalent of the UK purchasing power in that country.

Fifthly, the internal purchasing power and hence the standard of living will rise in the exporting countries, and individuals will be better placed to buy their own domestic products. Everybody wins: except the greedy exploiters.

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Last Updated (Friday, 09 April 2010 10:52)

 
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