Unleashing
the power of investigative journalism
By Jack Thurston,
www.farmsubsidy.org
Eight years – and a lifetime –
ago, I was working as a political aide to the
UK agriculture minister Nick Brown. It was a difficult
time for British farming. Prices were down, the
backwash of mad cow disease was impacting the
livestock sector, the strong pound was hitting
exporters and there was genuine discontent in
many rural communities. At the same time, the
member states of the European Union were negotiating
a reform of the common agricultural policy (CAP),
the collective name for all the support programmes
that exist to give a helping hand to European
farmers. At a time of crisis, farmers said, why
tinker with the government support programmes
that are our lifeline?
We were having real difficulties getting across
our argument that an unreformed CAP was part of
the problem, not the solution. Economic studies
told us that most farm subsidies went to a small
number of large farm businesses, and that the
principal effect of production-linked support
was to increase land values, rents and input costs.
This was making it much harder for new entrants
to get into farming, for successful, entrepreneurial
farmers to grow their businesses and for farmers
to respond to changing customer preferences. The
inequality and the waste were neither registering
with most farmers nor with the public at large.
People still thought that the CAP was a policy
giving a helping hand to small family farms, the
backbone of rural Europe.
One rainy afternoon, and in part out of pure curiosity,
we asked the top civil servant in the Ministry
of Agriculture to produce a list of the 20 biggest
recipients of farm subsidies in the UK, and how
much each one got. It read like a page out of
Burke’s Peerage. If the public knew about
the six and seven figure annual payouts to the
likes of the Duke of Westminster and the Earl
of Buccleuch and big food companies like Nestle
and Tate & Lyle, would they see things the
same way? Unfortunately, British laws at that
time prevented disclosure of this information,
but once I had left the government I decided to
push for disclosure. It was not until 2005, with
a new EU directive on public access to environmental
information and the UK’s own Freedom of
Information Act, that the data was finally released.
This was several months after two Danish journalists,
Nils Mulvad and Kjeld Hansen, acting quite separately
from me, had teased the data out of an equally
reluctant Danish Ministry of Agriculture. Since
then the campaign has snowballed across Europe.
Sometimes the effort has been led by investigative
journalists, sometimes by campaigning NGOs and
academic researchers. Cross-border collaboration
has evolved into the farmsubsidy.org project,
and there is now an online database so that anyone
with an internet connection can access the data,
in a user-friendly way. There are now 19 countries
that have revealed full or partial data on farm
subsidy recipients and last December all EU countries
signed up to transparency in EU budget payments
starting this year.
Good investigative journalism is key to making
sense of the data. Without the local knowledge
and the inquiring minds, all we would have is
raw numbers. It is journalists who turn the information
into stories which people can relate to - thereby
making government more accountable to those who
foot the bill, i.e. taxpayers. It is one thing
to get a few headlines about how much EU subsidy
goes to Queen Elizabeth II or to Albert Prince
of Monaco, but this does not really shed light
on the inner workings of the policy. By contrast,
last year The Observer newspaper ran a feature
article on how European dairy export subsidies
are destabilising developing country dairy markets
that included a detailed analysis of who got the
money and where the surplus EU milk and butter
was being dumped. This helped bring into sharp
relief a small but scandalous aspect of the CAP.
Fortunately the EU has just suspended export subsidies
in the dairy sector, but there is a need to continue
pushing for greater transparency elsewhere. The
EU currently pays farmers to destroy perfectly
good fruit and vegetables when there is a bumper
crop that might lower prices. It also pays Greek
farmers to grow tobacco and finances refining
low-grade wine into industrial alcohol. Is this
something Europeans are happy to pay for with
their taxes?
With the Doha Round of World Trade Organisation
trade negotiations going nowhere, many developing
countries are looking to the possibility of dispute
settlement to bring rich countries’ farm
support policies into line with their existing
WTO commitments. But most developed countries
are several years late in notifying their farm
subsidies to the WTO. This makes it much harder
for developing countries to prepare litigation.
When Brazil brought its landmark case against
US cotton subsidies, it drew not on WTO notifications
but on data obtained by the Washington DC-based
Environmental Working Group using freedom of information
laws.
Meanwhile, the worldwide rush towards biofuels
is being driven by a new raft of government subsidy
programmes. Are these the most cost-effective
way of cutting greenhouse gas emissions? Only
with fully transparent policies will voters have
a chance to decide whether biofuels are a solution
to the problem of global warming or just another
way for big agribusinesses to boost profits at
the public’s expense.
Ultimately one must return to the insight that
at the heart of every subsidy there is a ‘social
contract’ defining the public benefit that
justifies the transfer. Sometimes the contract
is clearly specified, sometimes it is implicit.
Without transparency it is hard to know if the
subsidy is providing value for public money. When
journalists and other researchers go beyond the
headline-grabbing rich lists and stories of ‘waste,
fraud and abuse’ transparency can reconnect
citizens with their government and leads to a
more healthy and responsive public life.
|