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Objectives,
Approach, Organisation of the momagri
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I
Why set up a World Organization for Agriculture?
Because
decisions taken by the WTO and reform of the CAP are meaningless unless
there are rules:
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to counter any drift towards speculative excess which,
against all economic forecasts, drag prices down into a dangerous
spiral, and seriously destabilize agriculture throughout the world.
>
and to avoid the mass of collective costs, which
have still never been assessed, that our societies would have to
pay tomorrow if agriculture did not benefit from specific regulations. |
We
believe that currently used systems and decision-making tools (agricultural
economic models, methods and the foundation stone of WTO negotiations),
are no longer capable of dealing with the challenges that agriculture
represents for the future of humanity:
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fighting poverty,
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satisfying growing food requirements,
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ensuring the independence and sovereignty of States,… |
And
we want to make sure that the world’s agriculture tomorrow does
not become concentrated in just a few geographic areas that benefit
from unwarranted earnings (vast territories, a lack of welfare, contempt
for the environment) that could therefore affect food security on a worldwide
scale.
Should
we be prepared to accept the risk that, as a result of a mishap in the
climate or geopolitics, etc., we might be cut off from this supply?
This
is why our movement intends:
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to re-inform as many as possible on the strategic importance of
agriculture,
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to come up with the appropriate proposals to organize world governance
of agriculture. |
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II
How to set up a World Organization for Agriculture?
This
Movement, which we have called the World Organization for Agriculture
(momagri) is not opposed to the WTO, nor to the CAP reforms.
momagri
aspires to make certain objectives compatible which,
as things stand, appear difficult to reconcile:
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the fight against poverty, the terms of which are described by the
Millennium Round,
> the liberalization of exchanges
sought by the Doha agreements,
> community preference and the sustainable
development of territories within the framework of the common
agricultural policy. |
momagri
is thus at the very heart of the challenges we face at a time when it
is urgent to develop international cooperation to overcome current stumbling
blocks. For this purpose:
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It will work through an international association
bringing together a multitude of key players and decision-makers
around principles we are determined to defend. Its mission will
be to make sure public opinion is fully aware of the strategic
importance of agriculture.
> It will create a
new economic model, the NAR model, using a “game
theory“ approach to modelize the agricultural sector in
a more satisfactory manner than currently used models, because
it is vital that the specific nature of agriculture and all its
interactions with other economic sectors should be taken into
account.
>
An international assessment and ratings agency, the NAR Agency,
will be entrusted with the mission of providing permanent, pertinent
information which will form the basis for political decisions
and international choices: regular prices, stock levels, sustainable
development, the fight against social dumping, respect for the
environment, etc. |
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III
CAP and WTO: Agriculture at risk
The
CAP and the WTO negotiations are based on the principle of free exchange
and the virtues of fair competition whose contribution to collective
well being is undeniable.
However,
in order to benefit from these principles, international cooperation in
favour of joint regulation must be set up, as agriculture is both strategic
and specific.
Our societies must not forget that agriculture is a component
part of independence and sovereignty which must be preserved
and maintained everywhere in a world:
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with a fast-growing population,
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where new powers
are emerging,
>
and which is
subject to ever greater tensions with regard both to security
and commercial interests. |
Europe
is in the front line, with the CAP considered by some as preventing it
from moving forward when in fact, the agricultural policy is
the only integrated European policy. The fact that this point
has been forgotten only contributed to the rejection of the constitutional
treaty by France and the Netherlands.
This
is why the arguments of detractors of the CAP are fallacious and can be
swept away in just a few words.
Indeed:
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The agricultural budget only represents
40% of the community budget which in turn is limited to
1% of the GDP of member states.
>
Thus, Europe devotes 0.4% of the community GDP to support
an economic sector (agriculture and agri-food) that
actually represents 15% of its GDP.
>
Accordingly, since the average taxation rate in European
States is between 45% and 55% of the GDP, we can see that
agriculture represents less than 1% of taxation. |
It
is therefore urgent to move away from this false vision that stigmatizes
the agricultural world.
Because
if other European policies were integrated, we would have the same precise
figures concerning the level of public support they receive, and we would
see that it is much higher than that allocated to agriculture.
And so it is not by sacrificing the CAP that we will be able to provide
Europe, and its lack of political direction, with new impetus.
On the contrary, the future of Europe is dependent on a solid CAP,
its only source of nourishment today.
Indeed, what would happen if the break up of the CAP and the liberalization
of international agricultural markets were to continue without any rules?
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IV
The risk: profound destabilization on a planetary scale
…...for
Less Developed Countries (LDCs)
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Continual aggravation of the economic situation of LDCs
because of the permanent drop in prices on highly speculative markets.
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The risk of collapse of numerous LDCs confronted with definitive
exodus from rural territories and the explosive concentration of
poverty in megalopolises. |
No
country can hope for economic development without prior growth of the
agricultural sector.
…...for
Europe
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Loss of competitiveness of European agriculture and continuing
drop in agricultural revenues.
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Increased bureaucracy of control and rapid desertification
of the countryside.
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Failure of the Lisbon strategy in favour of rural development
and unharnessed relocating of agricultural production in countries
on the edge of the Union (Ukraine, Turkey and already Eastern
Europe).
>
Deterioration of Europe’s independence which
already has a deficit and is a net importer of the equivalent surface
area of 12 million hectares.
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Weakening of the strategic assets and cultural specificity
of France and Europe. |
Europe
is in the process of abandoning the only policy used in its own construction.
And
even for the United States, with
its system of guaranteed revenues for farmers, will
not be able to protect them in the long term (costs, WTO rules).
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V
The international community must acknowledge and act...
Because
agricultural exchanges, the subject of WTO negotiations:
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> are highly concentrated (10 regions are responsible for 90% of world
exports),
> only represent 10% in volume of total production. |
Consequently,
gearing the future of the world’s agriculture to WTO negotiations,
which only concern 10% of exchanges, is economic nonsense, and alone
justifies the existence of Organization for the World’s Agriculture.
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Since
the existence of a balanced CAP is the basic condition for any exchange
regulation system.
Indeed
Europe is a privileged partner of developing countries through the preferential
agreements it has signed: exchanges between Europe and developing
countries in the agricultural sector are more than three times greater
than those that exist between the United States and developing countries.
THUS
Dismantling
the CAP and accepting compromise at the WTO without measuring the
strategic consequences of such decisions will inevitably lead to:
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> profound destabilization of developing countries,
> weakening of the West including the United
States which, in spite of its overprotection, cannot support
such an evolution in markets.
> and therefore, considerable collective costs (economic,
social, fiscal, environmental, psychological,…). |
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Yet,
these collective costs have not even been measured, despite the fact we
know the causes that engender them and the resulting consequences:
If
the principle of precaution were applied to agriculture, the first
step would involve the assessment of these collective costs, particularly
for the LDCs which are still the most vulnerable. |
It
is therefore urgent to face up to these challenges, the real challenges
of the 21st century, and create the conditions for the world regulation
of agricultural markets.
It
is for this reason we have decided to launch the World Organization for
Agriculture to which France and Europe must give impetus. |
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VI
momagri’s mission
This
movement is no more than our duty to ensure food security for all peoples,
a precondition for a good balance and peace in the world in order to:
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«
Promote
a regulation system of agricultural markets on a world scale, while
respecting an economic, social and environmental balance. »
« Favour
the development of exchange so that conditions are improved for
all farmers, notably those in developing countries, and supply is
optimised for all countries. »
« Strengthen
potential for research, capacity of investment, productivity and
jobs in farming and agri-food activities, in order to constantly
improve consumer satisfaction and security. »
« Counter
any speculative excess and abusive support which distorts the functioning
of the markets to the detriment of sustainable development, by creating
and maintaining a model of alert and an evaluation of risks. »
« Develop
an information and awareness system which will allow international
institutions and national authorities to take adequate measures
to regulate agricultural products on world markets. » |
momagri will be complementary to the WTO, whose vocation is not to
regulate agricultural markets and fight hunger in the world. |
In
order to reach these objectives, it is vital and urgent to build a regulation
model for the world’s agriculture in order to replace the
existing models, upon which, for several decades, national and
international decisions have been made, as they are extremely unsatisfactory,
false in their conclusions and dangerous in the use that is made of them.
Just
one example is enough to illustrate this situation:
The model
of the World Bank states that the total liberalization of agricultural
markets would lead to a gain for everyone in the world of more than 350
billion dollars (which is less than 0.8% of the world’s GDP!), including
240 billion dollars for the developing countries. This sum has recently
been revised by economists (by varying certain hypotheses) and this gives
results which are even lower, some 25 billion dollars per year for developing
countries, which makes $1 per person per year!
But
this is false: preferential agreements are not taken into account and
several developing countries are getting deeper into poverty through agricultural
emigration that is continually fired by the extreme misery of the countryside.
THUS
The
liberalization of agriculture without rules within the Doha round
would be a catastrophe for the LDCs although the World Bank says
otherwise. |
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VII
momagri’s approach
It
is therefore time to mobilize all those who believe that a different organization
of the world’s agriculture is possible, that is both innovative
and maintains cultural traditions.
It
is for this reason that we are creating the World Organization for Agriculture
(momagri), which will involve all those who wish to work with the farming
community in order to:
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give a meaning and direction to our future,
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create a true perspective and return agriculture to its proper strategic
place
at a time when the farming community has been thrown into great
disarray. |
The
momagri will define New Agricultural Regulations (NAR) based on:
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the new integrating model, the NAR model
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an international agency for assessment and ratings, the
NAR agency |
The
Movement in favour of Organisation for the World’s Agriculture:
Will
mobilize renowned figures from the farming community, the main
production chains and the agri-food industries.
Will
associate non-agricultural representatives (scientists, NGOs,
humanists) capable of broadening the field of reflection and integrating
the Movement’s ideas and proposals in their words and actions.
Will
draw upon a core of experts comprising economists with a worldwide
reputation that will develop the NAR model so that if becomes an unchallengeable
reference on an international scale.
Will
set up procedures for alert, evaluation and recommendations which:
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will provide governmental authorities with the framework for a
new policy on an international scale.
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will facilitate the implementation of new regulation mechanisms
that will contribute to a positive evolution of the CAP and WTO
negotiations. |
The
Organization of momagri
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VIII
The momagri Model
This
model will provide a better picture of the real situation and
facilitate the running of international negotiations on a more credible
basis, guaranteeing more harmonious development of agricultural systems
throughout the world.
The
choice we have made to meet these requirements is that of a systemic approach
and a model of the game theory built around three essential dimensions
for the agricultural sector:
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The economic dimension,
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The political dimension and the importance of commercial negotiations,
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The other main areas that interact with the agricultural sector
(environmental, societal, development, energy). |
The
Game Theory is the strategic discipline which modelises a sector or a
complex situation, which is not cut off from the rest of the economy but
takes into consideration interactions which exist with its environment.
Like
the human body, where standard models consider human organs to be independent
of each other, and are therefore concerned about only one organ when giving
their diagnosis, a game theory model on the contrary will take into account
all the organs and the way in which they interact. We therefore produce
a final diagnosis which is far more complete and apt to describe agricultural
reality.
The interest in using such an approach to modelise agricultural realities
is triple-fold. It will in fact:
> take
into account all agricultural specifities, by integrating
other sectors which interact with the agricultural sector, such as energy,
transport, environmental standards, phytosanitary rules, taxation …
>
realise the strategic importance of agriculture
by placing it at the crossroads of strategic stakes such as the environment,
energy, food security and the fight against poverty, which current models
are incapable of doing.
>
give a model to political decision-makers
which can be used as a new reference for international negotiations,
which will enable them to give satisfactory answers to fundamental questions
such as:
• knowing if liberalisation is necessary, when and how,
• where to situate trade as a role of supply security and food sovereignty
• how to set up a policy of liberalisation which will result in
a stable and durable situation (WTO’s objective) required by all
regions in the world (because measuring the impact of liberalisation is
one thing, but studying the sharing-out of rewards which result from it,
is another),
>
defining the principles of world governance of agriculture.
(cf.
momagri’s report “International agricultural models on the
test bench”)
The
conceptual architecture of the momagri model
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IX
The NAR Agency
The NAR
agency will comprise a network of experts from all over the world
which, like financial ratings, social, environmental or ethical agencies
will develop a methodology based on a multidisciplinary model developing
an awareness with public authorities and the general public on the dangers
and speculative excesses of agricultural markets.
It will also release opinions and figures that could call into question
the credibility of certain decisions and the relevance of certain political
or organizational choices.
Organization
of the NAR Agency
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Advocating for agricultural market regulation and global food governance | |
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