Question

Consider the story of Malawi's transformation from a country that needed emergency food aid to one that feeds its hungry neighbors. The soil in Malawi was overfarmed and depleted, which made it impossible for the country to feed itself. The situation improved only when Malawi began to ignore the advice of the World Bank and rich countries, which, in trying to provide aid, had advised Malawi to get rid of fertilizer subsidies and to rely on the workings of free markets. After the disastrous harvest of 2005, Malawi reversed the trend and subsidized farmers' use of fertilizer, just as many Western countries do for their own farmers. The Malawi government's decision resulted in a complete turnaround of its people's situation. This example would lend most support to the view of ________.

1) The importance of fertilizer subsidies in improving agricultural productivity
2) The negative impact of overfarming and depleted soil on a country's ability to feed itself
3) The need for countries to ignore the advice of international organizations and rely on their own strategies
4) The effectiveness of free markets in solving food security issues

Answer 1

Malawi's success with fertilizer subsidies affirms their importance in boosting agricultural productivity and contradicts advice from international organizations that suggested relying solely on free markets.

Step-by-step explanation:

The story of Malawi's agricultural transformation supports the view that fertilizer subsidies are crucial for improving agricultural productivity. By implementing subsidies for fertilizer, Malawi was able to revitalize its overfarmed and depleted soils, thereby enhancing food security. This move contrasts with the advice from the World Bank and other international bodies that advocated for a reliance on free market principles without such subsidies. However, policies in many high-income countries, including their own agricultural subsidies, often harm low-income countries by distorting global prices and undermining local agriculture.