Malawi’s “Free Trade” Revolt

“Free trade” conditions accompany foreign aid, forcing the poor farmers in developing countries to compete with subsidized crops produced by powerful wealthy nations. In following the strict conditions to secure aid, Malawi had to battle starvation. Frustrated, Malawi defied World Bank policy in recent years by subsidizing fertilizer and seed programs for its farmers, allowing crops to expand almost threefold. Author Benjamin Barber argues that economic policies discouraging subsidies in developing nations while overlooking subsidies in wealthy nations are hypocritical. He explains, “The free market can contribute to economic development and even provide a basis for greater democracy, but only if the rules apply equally to the wealthy and the poor.” Imposing free-market policies in emerging economies where citizens have unequal preparation can spur inequality, bitterness and even chaos. – YaleGlobal