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19.06.2009 |

Africa: Subsidies That Work

In the 2008/2009 agricultural season, Malawi is spending $186 million to subsidize fertilizer and seeds for poor farmers, tripling the previous year's figure of $62 million. Malawi's success in this program, against donor advice, has made the country a grain exporter and helped contain food costs. The emerging consensus is that such subsidies are essential for African agriculture. In November the UN's Food and Agricultural Organization rewarded Malawi President Bingu wa Mutharika, who also serves as his country's Minister of Agriculture, with the Agricola Prize.

Ironically, donor opposition to agricultural subsidies in Africa was coupled with refusal by rich countries to reduce their own expensive subsidies to commercial farmers in their own countries.

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