Role of trade and investment in the development gap case study: Cotton
- Created by: rebeccahankinson
- Created on: 01-06-15 14:18
View mindmap
- Role of trade and investment in the development gap case study: Cotton
- Mali cotton
- Background information
- 10 million small-scale cotton growers suffering form falling prices
- Small scale farmers can earn up to $1000/year
- 3 million Malians rely on cotton to survive
- 2001 US aid= $37.7 m
- 2001= Mali lost $343 million due to American subsidises = 6% of GDP
- Impact of cotton
- Breathing problems die to cotton fibres
- Farming cotton gives a farmer 3X the average annual income
- Plans to privatised the cotton industry
- 4% of population driven into poverty
- Link to the development gap
- subsidies lead to over production of cotton- forces cotton prices down- Mali cotton farmers earn less- Declide in living standards
- If cotton subsidies to USA farmers were scrapped prices would have risen for African farmers by 3.5%
- Background information
- USA Cotton
- Background information
- 25,000 cotton producers receive $4 billion/year in cotton subsidies
- up to 20% of cotton farmer's income comes from subsidies
- USA spends 3x as much on subsidies for cotton then it does on aid for whole of Africa
- The US is the second larges producer for more than 50% of the worlds exported cotton
- Impact of cotton
- Large scale production e.g. 1 16,000 acre farm makes enough cotton for 200,000 t-shirts
- The slack in world production of clothing has been taken up by China and pakistan
- In countries that subsidies their farming, only 5 % of the population are farmers
- Link to the development gap
- Reduces cotton prices by 15%
- Law passed banning export subsidies on cotton
- WTO ruled in March 2007 that cotton subsidies were unfair
- Background information
- Mali cotton
Similar Geography resources:
Teacher recommended
Comments
No comments have yet been made