Thurow, Roger and Scott Kilman. 2002. "U.S. Subsidies Create Cotton Glut That Hurts Foreign Cotton Farms." Wall Street Journal (26 June): p. A1. "Cotton could be a key engine of poverty reduction for Mali and nearby states, according to a joint study by the World Bank and International Monetary Fund. In West and Central Africa, cotton cultivation employs more than two million rural households. African cotton, much of which is hand-picked, is just as good as American cotton. The report estimates that the removal of U.S. subsidies -- which account for much of the $5 billion a year in subsidies world-wide -- would produce a drop in U.S. production that would lead to a short-term rise in the world price of cotton. In turn, that would increase revenue to West and Central African countries by about $250 million. That is a princely sum in a region where vast numbers of people live on less than one dollar a day."
"Instead, the opposite is happening. The new farm bill increases the amount of money a U.S. cotton farmer can count on making this year by at least 16%. At the same time, in Mali, where cotton makes up nearly half the nation's export revenue, the government is telling cotton farmers they will be getting about 10% less this year from the state cotton company." -- Michael Perelman Economics Department California State University [EMAIL PROTECTED] Chico, CA 95929 530-898-5321 fax 530-898-5901
