Today on a very special post...

I thought I'd post this essay I wrote last year up here, because hey, it's purpose is to persaude and inform, and goddamnit it needs to persuade and inform people!

It's entitled Pillaging the Poor: Unfair Trade and Profiting from Poverty, and it's about some of the more shady things influencing global health, and poverty.

I'm sure most of you will find it boring and not bother to read it, but some of you might find it interesting, and gosh-darnit, if it just reaches one of you, it'll be worth it!
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Pillaging the Poor: Unfair Trade and Profiting from Poverty

The world is not the same place it was fifty years ago, twenty years ago, or even a year ago. The planet and the countries that occupy it are deeply integrated with regards to: trade, commerce, health, and politics. This integration is possible due to new technologies and agreements which have developed in the last few years. It should be a glorious new age for this planet and its inhabitants; an age of equality where sustainable food and water, education, and opportunities are available to all. However in reality, an even greater disparity exists between the rich and the poor. A look at the UN Human Development Index 2003 shows only twenty-eight countries in the top percentile (above 0.900), and a disproportionate amount of countries with low indices in Sub-Saharan Africa.

The information and statistics are not hidden, and many of the causes aren’t either. However it is clear that those men and women in power are not ready to take on some of the root causes of the poverty and health issues that exist in the Global South. Two of these root causes are unfair trade and the practices of the IMF and World Bank, two organizations sometimes viewed as benevolent. These are two factors which are in complete control of those with political and financial power; politicians and board members alike. Though they are only two causes within many more, unfair trade and the practices of the IMF and World Bank are two major reasons for continual poverty and disparity that exist in this world. The ability to change this lies in the hands of the rich and powerful of the world, and they seem to be in no hurry.

Unfair trade is an incredibly pressing issue that affects much of the Global South. The rules and laws of trade, and practices such as “dumping”, allow richer countries and transnational corporations to take advantage of the Third World to further their gain, by taking advantage of the destitute. “Dumping” is the name given to a practice that more wealthy countries do which greatly hurts producers of goods in poorer countries. Producers of goods (such as cotton) in richer countries are subsidized by the government. They are able to produce cheap goods, the surplus of which is shipped to countries with local farmers who cannot compete with the low prices of the imported goods. These local producers are either forced to drop their prices, or are forced to stop selling their product. American cotton being dumped on African countries and American corn on Mexico, are both examples of “dumping” of products from a more economically powerful country onto a poorer country. The practice of “dumping” is a clearly taking advantage of international trade to further profit the rich countries and corporations. Unfair trade also affects issues of health in the Global South. Transnational pharmaceutical companies push for tight patent protection laws on their drugs, through various means of political influence. The global trading rules were set by the more wealthy nations where these corporations have political influence, and therefore make this possible by asking all nations to give a twenty year patent on all new drugs manufactured by these pharmaceutical companies. This prevents manufacturers from making cheaper generic versions of life-saving drugs such as the anti-retrovirals used to combat AIDS. The patented drugs are too expensive for nearly all of those who need them in the Global South. Many lives are lost because of this trade rule, as those with treatable diseases cannot get any treatment. Global trade is hardly a level playing ground. Wealthier, more powerful countries have greater access to the markets of the poorer countries. They limit the access third world countries have to their markets by charging high import tariffs. This causes those producers who can afford to pay the tariffs to sell their products at a much higher price that is not competitive in the market, or it forces poorer countries to export raw materials. The exported raw materials sell at a much lower price than finished goods, and the richer countries get the profits from the finished goods made from the raw materials. These tactics further deepen the poverty of the Global South, while at the same time fill the coffers of the richer nations and the corporations within.

The Structural Adjustment Programs of the International Monetary Fund (IMF) and World Bank both generate controversy and tie into issues of unfair trade, as well as create new negative health and economic issues. Structural Adjustment Programs (SAPs) are changes that the IMF and World Bank ask countries to make to their laws and markets when giving them loans. They are drawn up to help generate funds to pay off debt that the countries accumulate. Unfortunately, they end up creating more problems for the countries that receive loans. The SAPs usually insist that countries: install user fees for health and education services, reduce spending on social projects, institute the privatization of government owned companies, and - perhaps most troubling-lift their import and export restrictions. In their favour the structural adjustment programs also call for more understandable changes, such as measures for reducing corruption. The overall effect is negative, especially the unethical changes forced upon the countries receiving loans. Not only is the amount of influence the IMF and World Bank have on these countries’ policies frightening, the reduced spending on social projects would most likely hurt the health and education systems of countries seeking loans. Bringing unfair trade back into the picture again, the SAP’s mandated opening of the countries’ markets will further aggravate the problems of “dumping” and may drive the local producers and companies into poverty. The parameters of the Structural Adjustment Programs regarding social spending, user fees for basic services, and removing restrictions on import and export are more likely to drive the destitute in the country further into poverty.

The gap between the rich and Global South is widening, and the world has taken notice. There are those fighting these incredibly unfair and what should be unlawful practices everyday. The power to change them however, lies in the hands of the select powerful and wealthy. These select few - world leaders, lobbyists, corporate heads, and organization heads - seem to be fine with pillaging the poor and profiting from poverty, as it leaves them in a better position either monetarily or politically. Unsurprisingly money is the driving force behind many of the decisions affecting the most poor and sick people in the world.

And until those with the power to change this all realize that the life of a human being is worth more than an extra hundred dollar profit, the gap between the rich and the Global South will keep growing.