Indian Agro-Economist Attacs IMF, World Bank and WTO
A leading Indian agro-economist and senior
professor in the Jawaharlal Nehru University in New Delhi, Utsa
Patnaik, attacked the IMF, World Bank, and WTO as being responsible for
bringing millions to the brink of starvation during the ongoing
worldwide food crisis. In a recent interview with the Indian bi-monthly, Frontline,
of the Hindu Group of publications, she said: "If one
looks at the question of food grains (in India), the working of
the public distribution system run by the government to
provide vital food grains and other bulk food items to the poor
at a subsidized price, (PDS) was made possible, between 1965 and 1990,
by the phenomenal expansion of food grain production in the
country. The moment our entire economic strategy began to be
guided by the neo-liberal paradigm, one of the major decisions
was to cut subsidies."
She said the financial institutions began targeting this in
1997. "If one looks at the history of targetting in other
countries, it becomes clear that it has always been a prelude to
winding up of state intervention in procurement. That has been
the ultimate aim of the International Monetary Fund, the World
Bank, and the World Trade Organisation. They specifically say
that the state should not intervene to buy and sell at prices
other than global prices.
"The WTO agreement on agriculture states that for food
security purposes, the government can maintain food stocks but
then, at the same time, it says that the government cannot offer
farmers prices that are higher than global market prices. Global
prices are very volatile. The government's role here is to
protect both the farmer and the consumer. The whole rationale of
the PDS lies in that," she added.
|