The theory of industrial policy meets reality
The idea of industrial policy has been seeing a bit of a resurgence since the financial crisis. It's good to be reminded of the reality of what these policies end up looking like in practice. It seems that Ethiopia's private sector coffee exporters are not too sympathetic to the idea. (H/t African Agriculture)
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As a middle class environmental engineer/part-time farmer who raises half our food (grass-fed beef, vegetables and eggs) as a matter of health and lifestyle, it is interesting for me to observe the on-going debate about agri-business in sub-Saharan Africa. One thing we have learned is that good agricultural business skills are typically "caught" not taught. Growth in farming skills always requires hands-on interaction and mentoring by successful farmers and ranchers.
Another thing we have learned, and something that I suspect can have worldwide application, is that small to medium scale agri-business is typically more profitable for the farmers and has less impact on environment. Many family farms in the US are moving toward direct sale to the public because it is more profitable with less regulation, and less work. Through the negative example of numerous large corporate agri-businesses in the US we have also observed that over-concentration of processing, waste management and mass crop production typically causes substantial damage to the environment. Good, healthy, and sustainable agri-business takes time and ingenuity because it involves interaction with nature in the form of land, water and unpredictable weather. My engineering and farmer's intuition tells me until we (the developed nations of the world) get more feet on the ground/hands in the soil, by working with our African agricultural partners, that we will never really understand the impediments to sustainable agri-business in Africa.
That being said, there is finally light at the end of the tunnel of poverty in sub-Saharan Africa. I imagine the current crisis with global climate change will force the people of developed and undeveloped nations to work together. Whether we want to or not..... The technology is finally here to connect us all with knowledge and insight allows cross cultural, cross ocean, and cross border mentoring as never before. We just have to find a way to work, sweat and enjoy the fruit of the land together! I actually have more faith and trust that the poor farmers of Africa will hear the message sooner. Why? Because they know what "enough" is. Let's not screw them up by assuming all our Western methods of farming and ranching are the best. At the same time I have some moderate hope even for the "rich" and middle class in the highly developed nations. The rich or middle class of the US are quickly learning that unnecessary stress over their excess stuff and unsustainable pace of life keeps them from enjoying the simple things of life. I think we have much that we can learn from each other and the time is right if we make the most of the "climate of positive change" that has come upon our world. So ... Enough philosophy, back to the real joy of building barns, eating the fruit of our labor, and getting some dirt beneath my fingers this weekend.
Posted by: Chris Hardin, engineer and part-time farmer | Nov 13, 2009 4:41:43 PM