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Editorial: Why Africa must be able to trade

Aid won't help Africa if it's forced to play by the rich world's rules

FOR people fortunate enough to live in the rich industrialised world, science and technology have lifted standards of living and quality of life to unprecedented levels. For those in the world’s poorest countries, especially in Africa, that hasn’t yet happened – and if the European Union sticks to the position it adopted in negotiations this week in Lisbon, Portugal, it never will.

World trade treaties require that by 31 December the EU must renegotiate trade deals that give favourable treatment to 78 former colonies, many in Africa. Europe is offering deals that allow them to sell products in Europe. The snag is that the EU wants equal access to African markets, meaning those countries cannot block imports or subsidise their own producers to protect them from European competitors.

That is unfair. It means, for example, that tiny African brewers will have to compete with European beer giants, with predictable consequences. The EU claims its offer lets poor countries protect key industries for a while, but African countries are unimpressed. They know that when Europe was industrialising in the 19th and 20th centuries, it protected its infant industries with strict subsidies and trade barriers. These were dropped only when this protectionism had fostered industries that could take on the world.

The US took the same path, as did China and India. Now poor African countries want to do the same – and the EU is crying foul. Some economists liken this to using a ladder to get to the top, then kicking it away so competitors can’t follow. The EU says it merely wants to level the playing field. But a level playing field is only fair for teams of equivalent strength. Denying protectionism to Africa is like pitting a kids’ soccer team against professionals.

We know that certain kinds of protectionism can work in Africa. Consider Malawi, where free traders at the World Bank insisted that it deny subsidies to its farmers. After repeated famines, Malawi stopped listening, and in 2006 started subsidising fertiliser and improved seed. This year it has enough grain to export.

Fertiliser and improved seed are perhaps the most iconic example of the way science can boost human welfare. Yet Malawi had to face down the free traders to make it work. Other African countries desperately need similar development, especially in farming, the foundation for all other development. If the EU wants to help, it must let Africa follow it up the protectionist ladder. Only then can science help build a better future for Africa.