The Situation
* G8 countries currently pay their farmers and companies subsidies to export food to the extent of $300billion/year.
* At the same time poor countries are forced to open their markets to free trade and unfair competition. This is destroying the livelihoods of poor farmers.
* Decisions are made at the WTO, at which many poor countries have no representation, while rich countries have whole teams of people.

The Make Poverty History campaign is calling for a change in trade to help Africa:
* End the massive export subsidies used in rich countries.
* An end to enforced liberalisation, and to the IMF and World Bank setting poor countries' trade policies.
* Fair representation and special treatment for poor countries at the WTO.

World Band head Paul Wolfowitz has called for subsidies to be cut and for a boost to trade. African trade leaders call for progress on trade. George Bush has said he will cut US subsidies if the EU cut theirs.

There is little or no evidence to support claims that free trade lifts people out of poverty. Countries which have rapidly opened their markets to free trade, such as Haiti, Nepal, Mali, Zambia and Peru, have very poor records on economic growth and poverty reduction. On the other hand, South East Asian countries, which have successfully reduced poverty through trade, did not use free trade policies.

According to the International Monetary Fund (IMF) sixteen sub-Saharan African countries have lower trade barriers than the EU. Yet these countries are struggling to improve living conditions for their people. Between 1992 and 1997, Zambia’s trade barriers were drastically cut or abolished as a condition of an IMF loan. During this time manufacturing employment almost halved, Zambia’s economy shrank, imports grew and exports fell.

Some Biblical Perspectives
1. The concept of ownership is Biblical, (otherwise laws about covetousness and stealing make no sense), although God retains to himself ultimate ownership of the earth, and our ownership should be seen as stewardship (Jer 2:7, Lev 25:23), the fruit of which is to benefit all people.

2. Profit and economic prosperity must not be the ultimate goal of a world economic system. Wealth is intended for the physical, social, and spiritual development of all individuals and communities.

3. Trade for profit is nowhere condemned of itself. It is acknowledged as the fruit of hard work (Prov 14:23, 21:5, 31:14-18). Some economic inequality is inevitable as a result. However, the fruit of the earth is intended for the benefit of all.

4. Trade is abused through the sin of greed (Prov 23:4, Is 57:17, Col 3:5, 1Tim 6:9-11), which leads to evil practice in the pursuit of profit. The unrestricted pursuit of profit will tend to lead to the oppression of the poor and vulnerable.

5. God instructed his people not to take advantage of the poor, but to establish laws to ensure they were protected (Lev 25: 14-17, Prov 22:22-23, Is 10:1-2),

6. In Israel, God instituted laws to ensure righteousness in trade, and restrict the unrestrained pursuit of profit. These included: the need for honest measures (Lev 19:35-37, Prov 11:1, Eze 45:9-12), fair prices and wage paying (Lev 19:13, 25:14-17, Deut 24:14-15, Ja 5:1-6), not harvesting completely (Lev 19:9-10, Deut 24:19-22), days when no work is to be done (Ex 23:10-12), and regular restitution of equal access to the means of wealth generation (Lev 25:10-55). Laws should therefore be instituted to protect the poor, including ensuring fair prices for their produce, fair access to the means of wealth generation, limitations on the exploitation of resources by the rich, equal representation in law

7. Israel became a trading nation in the time of Solomon (1Ki 9:26-28, 10:10-22), but was judged by God through Amos for her injustice and oppression of the poor in the pursuit of profit (Am 5:11-15, 8:1-6). Also Is 58:3.

“When will the New Moon be over that we may sell grain,
and the Sabbath be ended that we may market wheat?"
- skimping the measure, boosting the price
and cheating with dishonest scales,
buying the poor with silver, and the needy for a pair of sandals,
selling even the sweepings with the wheat. (Am 8:5,6)

8. Tyre was judged as a nation for her exploitation in the pursuit of profit (Eze 26:2). She was a powerful trading nation (Eze 27), and this had led to pride (Is 23:1-18, Eze28: 1-5), violence, dishonesty, and corruption ( Eze 28:16-19). Her trade was described as prostitution (Is 23:17 cf Rev 18:1-24).

9. Jesus’ cleansing of the temple can be understood in part as an attack on the exploitation of poor pilgrims by rich traders, a double offence in its association with God’s temple (Lk 19:45).

Application
1. The church has a specific role in discipleship. This should include discipling believers in the areas of greed, justice in business, fair trading in commerce and shopping.

2. Laws should be instituted to make sure that international trade works for the poor, and that they are protected from exploitation by the rich and powerful. This would include ensuring fair prices for their produce, fair access to the means of wealth generation, limitations on the exploitation of resources by the rich, and removal of rich country subsidies.

3. Poor countries should be given equal representation at the WTO, and should be free from enforced liberalisation.

Other articles in this series on:
1. Biblical attitude to the poor
2. Corruption
3. Aid and Development
4. Debt
5. Trade.

Tags: g8 poverty make poverty history africa trade