Agricultural policies in a global environment

Abstract

Globalization provides opportunities for significant growth. However, unless specific action is taken to ensure that the benefits of the more integrated markets are accessed, globalization will further marginalize poor economies. The reduction of subsidies and tariffs on agricultural commodities in industrial countries could result in increased exports from Zimbabwe but some countries in the west, notably the United States of America, have resisted removing subsidies to their farmers, even when they are at the forefront in demanding this from developing nations. This is the reality that faces developing countries and Zimbabwe suffers a double impact due to international (and particularly western) isolation as a result of its controversial land reform programme and over governance issues. In order to become active in the globalized market and to retain and expand national markets, local institutions need to be adaptable to changing demand and they must provide security and incentives for investment in biological, physical and human capital. Adequate access to markets and information through a reliable and affordable communications network is essential (Ingco and Nash, 2004).