Having 'liberalised' the economies of poorer nations, companies from various richer countries compete for market shares in poorer countries. Governments have even diverted part of their aid budgets to subsidise selected national companies seeking to win lucrative contracts. Until it succumbed to a successful campaign by the World Development Movement in the late 1990s, the British government did this through an initiative called 'Aid and Trade Provision'.



Subsidies are also used domestically. America's agricultural and cotton industries are heavily subsidised. Local cotton production has doubled in recent years. India and Sri Lanka rely on achieving high export sales from fruit, vegetables and cereals. And cotton is a major export for India and many African countries.