Economic Wheels of Food:. GOOD FOOD. WEALTH AND KNOWLEDGE. GOOD HEALTH. ENERGY AND ACTIVITY. HIGH PRODUCTIVITY. POOR FOOD. POVERTY AND IGNORANCE. POOR HEALTH. LOW PRODUCTIVITY. TIREDNESS. Some key terms:
WEALTH AND KNOWLEDGE
ENERGY AND ACTIVITY
POVERTY AND IGNORANCE
Malnutrition: Lack of nutrients caused by an imbalance in the quality of the food. People can eat all they want and still be malnourished
Starvation: Lack of food.
2/3 of the world’s children live in developing countries where malnutrition is a way of life. Malnutrition can lead to death, blindness, mental retardation, physical impairment, and diseases.
1/4 of the world eat too much, 3/4 eat too little.
North Americans are at the point where we are eating too much in both quantity and poor quality.
- cannot compete on the world market ‘Arteriosclerosis’ (hardening of the arteries – heart disease)
There are a few exceptions or success stories – Hong Kong, Taiwan, South Korea, Japan, Switzerland – low wages, excellent work force, supportive government, invisible trade (e.g. transfer payments, funds from NGOs) and aid from developed nations.
2. These countries that have no money earn very little from ‘Invisible Exports’ – Tourism, Banking, Insurance etc.Brazil, Mexico and The Bahamas are trying to build an economy partially on tourism.
3. In some cases, governments may be corrupt or are spending money on developing the military.
Agriculture ‘Arteriosclerosis’ (hardening of the arteries – heart disease)subsidies mean the financial assistance provided by government to farmers through government-sponsored price-support programs. The objective behind providing agriculture subsidies is to provide benefits to farmers and thereby stabilize food prices, ensure plentiful food production, and to guarantee basic income to farmers. In U.S. and France, agricultural subsidies are designed to increase farm income by raising the long-term level of prices above free-market levels or by providing direct payments to farmers. Agricultural subsidy helps to influence the cost and supply of commodities such as wheat, feed grains, cotton, milk, rice, peanuts, sugar, tobacco, and oilseeds such as soybeans.
Tariff: ‘Arteriosclerosis’ (hardening of the arteries – heart disease)A tax imposed on imported goods and services. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers. They are one of several tools available to shape trade policy. Governments may impose tariffs to raise revenue or to protect domestic industries from foreign competition, since consumers will generally purchase cheaper foreign produced goods. Tariffs can lead to less efficient domestic industries, and can lead to trade wars as exporting countries reciprocate with their own tariffs on imported goods. Organizations such as the WTO exist to combat the use of egregious tariffs.
Old method of giving aid: ‘Arteriosclerosis’ (hardening of the arteries – heart disease)
Barriers like corruption, lack of infrastructure, taxes, high prices
The food does not always get to the neediest nations.
The Grass Roots approach: ‘Arteriosclerosis’ (hardening of the arteries – heart disease)
In this case the poor get the aid first. The aid should not be free food, but education to teach them how to feed themselves.