| Summary: | This capstone project deals with standards imposed on the trade of agricultural imports from developing countries by developed countries. BSE, foot and mouth disease, and avian flu are all major concerns for US and European consumers. These governments are extremely risk averse and want to reduce the risk of transmitting any kind of disease, especially those borne by agricultural products, to zero. There is no tolerance for risk. But is there a less burdensome system that also can achieve the zero-tolerance policy? One of the requirements is that there be no contact between different animals. For example, hoofed animals, which may be possible carriers of foot and mouth disease, must be completely separated from each other. This requires building artificial barriers to separate the animals. But this has deleterious effects for tourism in African countries, where tourists from the developed world go on safaris to see animals. Building fences and artificial barriers reduces the naturalness of the habitat and reduces the attraction for tourism. In order to reduce the cost of the fences, agencies like USAID may subsidize the building of the fences, but they do not subsidize the loss in tourism. Thus there are real costs to these countries. So the main questions this project addressed were these: 1.Are there any alternatives? 2.Is it possible to institute policies that are less burdensome and yet achieve the desired outcome (which is to reduce the risk of spreading diseases)?
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