From:

http://www.hudson.org/new_detail.cfm?Art_ID=382

One Billion School Kids, a New Market For US Farmers?

Dennis T. Avery

BRIDGE NEWS

July 14, 2000

CHURCHVILLE, Va. - The Clinton administration has backed some bad
ideas, including Hillary Clinton's attempted health-care takeover
and giving the federal government hypothetical authority to
inspect your home office for safety hazards.

     For a bad idea on a global scale, however, it's hard to beat
Clinton's latest legacy-building proposal - a global school lunch
program. It would be run by the United Nations, with the United
States contribution mainly in the form of surplus farm
commodities.

     The idea itself came from former Sen. George McGovern, who
originated the old Food for Peace program and is currently
America's ambassador to the United Nations' food agencies in
Rome. McGovern wants the United States to guarantee a nutritious
school lunch for every school kid in the world.

     Secretary of Agriculture Dan Glickman is enthusiastic. "The
president gave us the green light to go out and develop this
program," He says. "It was clear the president and his staff were
very impressed with the idea."

     But the folks who must really love the global school lunch
idea are at the United Nations itself. Imagine a U.S.-backed
program to put a United Nations presence in every school in the
Third World! Imagine handing out school lunches daily to 1
billion kids.

     It must make U.N. Secretary-General Kofi Annan giddy to
think of the political capital he could build with such a handout
program, especially compared to putting U.N.-sponsored troops
into some heavily armed hellhole like Somalia.

     America's school lunch programs have been an excellent way
to enhance childrens' nutrition. The costs have been rational.
But it's a U.S. program, run mostly at the local level, with most
of the costs paid by the parents.

     When The Washington Times interviewed McGovern about the
program, he said, "I estimate this program will cost a total of $
3 billion for the first two years." He pooh-poohed the idea of
big costs. "School lunches in developing countries cost 12 to 15
cents per meal, while U.S. school lunches cost a little over
$1.20."

     McGovern's $ 1.5 billion a year might cover local commodity
costs. But the administration sees the lunch issue as a way to
unload some of what McGovern would call our farm surplus. It
might easily cost 10 times the value of the U.S. commodities to
ship them to hungry kids in upcountry Nigeria.

     First list the cost of shipping the commodities to Lagos,
Nigeria, and hand-bagging them at dockside. Then add the cost of
trucking them hundreds of kilometers over potholed dirt roads and
rivers without bridges to reach northern cities like Kaduna or
Kano.

     When America tried to get food aid to starving Ethiopians
during their drought in the early 1980s, we had to provide the
commodities, the trucks to carry the food inland, the fuel for
said trucks and the cost of the ships to carry the food, trucks
and fuel.

     McGovern also noted the United States has to pay one-fourth
of the total cost. So if we take on school lunches for 1 billion
kids and the global cost is $ 6 billion (or $ 60 billion) Uncle
Sam pays one-fourth of the bill.

     Moreover, when America sponsored school lunch programs for
Japan after WWII, we introduced bread, milk and even meat to
improve the kids' nutrition.

     How long would the United Nations resist the temptation to
increase its impact and political importance by doing likewise?
What affluent democracy could take the political heat for denying
such important nutritional benefits to little kids once the
program became a recognized entitlement?

     A few things are certain here. First, little kids in
northern Nigeria and everywhere else should go to school. Second,
they should have good nutrition. Third, school lunches have
helped to provide good nutrition for poor kids in affluent
countries.

     But the only cost-effective way to provide good nutrition in
remote poverty-stricken places is by using local sources. Any
foreign money and commodities flowing to the kind of kleptocratic
governments that rule such states will mostly be stolen, no
matter who administers it. That's why the billions in foreign aid
we've already handed to African leaders haven't helped much.

     The farming community always loved Food for Peace because it
seemed like a limitless and supposedly constructive way to
dispose of the surpluses generated by America's high farm price
supports. Glickman probably loves the idea because it would give
him something tangible to wave in front of farm audiences as he
campaigns for Vice President Al Gore.

     But farmers would find a global school lunch program
shipping a few thousand tons of costly U.S. commodities to some
school kids a poor substitute for free trade, which would boost
world farm market prices and double world farm exports.

     For years, McGovern was a senator from South Dakota, voting
for farm subsidies and against free farm trade. He didn't save
many family farms that way either.

     Dennis T. Avery is based in Churchville, Va., and is
director of global food issues for the Hudson Institute of
Indianapolis.



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