happy birthday to the cap – comment on the cap’s 50th birthday herzlichen glückwunsch, gap –...

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Dear Editor, Happy Birthday to The CAP – Comment on the CAP’s 50 th Birthday Herzlichen Glückwunsch, GAP – Kommentar zum 50. Geburtstag der GAP Bon anniversaire à la PAC – Commentaire sur l’anniversaire des 50 ans de la PAC It is traditional when celebrating a 50 th anniversary to wish the recipient a prosperous and healthy future, as well as celebrating the history. In the case of the CAP (EuroChoices, 7:2), however, your contributors and correspondents seemed reluctant to be so generous. Michel Petit, p.44, came closest, perhaps, commenting that: ‘Predicting precisely the outcome of these multiple forces bearing on the future of the CAP is impossible. What is safe to predict, though, is that CAP reform will continue to be on the agenda for a long time’. Meanwhile, Stead, p.7, noted that: ‘Critics down the years have, nevertheless, consistently observed that the objectives set were vague and contradictory. (Nowadays another criticism is that they are also outdated)’. Csaki goes further, p.5: ‘Hence one might question whether the ‘‘one fits all’’ approach of the CAP is the right direction for the future?’ though, interestingly, only raising this fundamental question as a consequence of considering the very different needs of the Central European countries for any sort of agricultural policy. Meanwhile, both Ackrill and Grant strongly suggest that the political (as opposed to logical or economic) justification for a long and prosperous future continues to be, income protection – ‘Despite the centrality of income concerns to the CAP, data on farm household incomes remain limited – and there exists considerable political opposition to changing this situation’, Ackrill, p.21; and a continued dependence on support – the debate has been dominated by an acceptance of the need for subsidies and protection. What is a matter for real concern is that some of this tired old thinking seems to be staging a comeback (Grant, p.45). It is, perhaps, even more interesting that the current rationale for the continued existence, if not further health and prosperity of the CAP – multifunctional agriculture – does not appear in any of these commentaries. If it did, perhaps at least one might have been written as an obituary, or at least as a valedictory. Surely the title – Common Agricultural Policy – has now become as anachronistic as the USSR, a contradiction, if not an actual lie in every word. If the only sustainable rationale for any sort of policy towards agriculture (and or rural land use) is that of market failure (as implied by the multifunctional arguments), then it follows that the reasons for intervention (and hence for policy design and objectives) must also differ, in both quantity and kind, across space and territory and, therefore, between countries. The notion and concept of a common policy is inherently contradictory, if not meaningless (and thus a lie). Even if the rationale continues to be support and protection, as Csaki points out, the current members of the EU have very different requirements at least in terms of quantity, if not also of the kind of policy. In this case, too, common remains as an anachronism, while the current rhetoric defending the policy is clearly a lie. Many will agree with Petit – CAP ‘reform’ will continue to occupy our politicians’ and policy advisors’ time (and therefore our effort and resources) for the foreseeable future. But, I seem to remember, most people said the same of the USSR. Perhaps 50 is old enough for this policy, and we should turn our attention and effort to retiring it (if not burying it) gracefully and get on with the real problems of the future by defining and designing more rational (and hence sustainable) policies? Meanwhile, the European Association of Agricultural Economists Conference in Ghent last August provided a magnificent caricature of the present CAP. Six hundred delegates expressed interest in discussing the Health Check with EU Commission officials, of whom four were available. After a one and a half hour journey to Brussels – normally 40 minutes – we discovered that the available meeting room could only hold 400, so 200 had to ‘participate’ remotely. Still, the Commission did provide us all with an excellent and well-lubricated buffet supper. All of which neatly encapsulates the 50 year old CAP. Well done the EAAE and the EU. David Harvey Newcastle University, UK Email: david.harvey@ @ncl.ac.uk letter 54 ƒ EuroChoices 8(1) ª 2009 The Author Journal compilation ª The Agricultural Economics Society and the European Association of Agricultural Economists 2009

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Dear Editor,

Happy Birthday to The CAP –Comment on the CAP’s 50th

Birthday

Herzlichen Glückwunsch, GAP– Kommentar zum 50.Geburtstag der GAP

Bon anniversaire à la PAC –Commentaire sur l’anniversairedes 50 ans de la PAC

It is traditional when celebrating a50th anniversary to wish the recipienta prosperous and healthy future, aswell as celebrating the history. In thecase of the CAP (EuroChoices, 7:2),however, your contributors andcorrespondents seemed reluctant tobe so generous. Michel Petit, p.44,came closest, perhaps, commentingthat: ‘Predicting precisely theoutcome of these multiple forcesbearing on the future of the CAP isimpossible. What is safe to predict,though, is that CAP reform willcontinue to be on the agenda for along time’. Meanwhile, Stead, p.7,noted that: ‘Critics down the yearshave, nevertheless, consistentlyobserved that the objectives set werevague and contradictory. (Nowadaysanother criticism is that they arealso outdated…)’. Csaki goes further,p.5: ‘Hence one might questionwhether the ‘‘one fits all’’ approachof the CAP is the right direction forthe future?’ though, interestingly, onlyraising this fundamental question as aconsequence of considering the verydifferent needs of the CentralEuropean countries for any sort ofagricultural policy. Meanwhile, bothAckrill and Grant strongly suggestthat the political (as opposed tological or economic) justification for a

long and prosperous future continuesto be, income protection – ‘Despitethe centrality of income concerns tothe CAP, data on farm householdincomes remain limited – and thereexists considerable politicalopposition to changing thissituation’, Ackrill, p.21; and acontinued dependence on support –‘… the debate has been dominatedby an acceptance of the need forsubsidies and protection. What is amatter for real concern is that someof this tired old thinking seems to bestaging a comeback (Grant, p.45).

It is, perhaps, even more interestingthat the current rationale for thecontinued existence, if not furtherhealth and prosperity of the CAP –multifunctional agriculture – does notappear in any of these commentaries.If it did, perhaps at least one mighthave been written as an obituary, orat least as a valedictory. Surely thetitle – Common Agricultural Policy –has now become as anachronistic asthe USSR, a contradiction, if not anactual lie in every word.

If the only sustainable rationale forany sort of policy towards agriculture(and ⁄ or rural land use) is that ofmarket failure (as implied by themultifunctional arguments), then itfollows that the reasons forintervention (and hence for policydesign and objectives) must alsodiffer, in both quantity and kind,across space and territory and,therefore, between countries. Thenotion and concept of a commonpolicy is inherently contradictory, ifnot meaningless (and thus a lie).Even if the rationale continues to besupport and protection, as Csakipoints out, the current members ofthe EU have very differentrequirements at least in terms ofquantity, if not also of the kind of

policy. In this case, too, commonremains as an anachronism, while thecurrent rhetoric defending the policyis clearly a lie.

Many will agree with Petit – CAP‘reform’ will continue to occupy ourpoliticians’ and policy advisors’ time(and therefore our effort andresources) for the foreseeable future.But, I seem to remember, most peoplesaid the same of the USSR. Perhaps 50is old enough for this policy, and weshould turn our attention and effort toretiring it (if not burying it) gracefullyand get on with the real problems ofthe future by defining and designingmore rational (and hence sustainable)policies?

Meanwhile, the European Associationof Agricultural Economists Conferencein Ghent last August provided amagnificent caricature of the presentCAP. Six hundred delegates expressedinterest in discussing the HealthCheck with EU Commission officials,of whom four were available. After aone and a half hour journey toBrussels – normally 40 minutes – wediscovered that the available meetingroom could only hold 400, so 200 hadto ‘participate’ remotely. Still, theCommission did provide us all with anexcellent and well-lubricated buffetsupper. All of which neatlyencapsulates the 50 year old CAP.Well done the EAAE and the EU.

David HarveyNewcastle University, UK

Email: david.harvey@@ncl.ac.uk

letter

54ƒEuroChoices 8(1) ª 2009 The Author

Journal compilation ª The Agricultural Economics Society and the European Association of Agricultural Economists 2009