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January 20, 2005

Subsidies are the opium of the people

Listen to this. The Afghanistan government may be forced to give subsidies to farmers to persuade them not to grow opium. (poppies account for 60% of economic activity) and to grow wheat, rice and cotton instead. Farmers can’t compete with Western exports of these commodities because they are so highly subsidised.

Hang on a minute. Wouldn’t it be simpler for the US, Japan and Europe to abolish their own subsidies (thereby returning money to taxpayers) rather than pricing Afghanistan's agriculture out of the market?

Would a slogan such as "Abolish cotton subsidies and help kill the drugs trade" play well in the US?

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