The Subsidy Simulation

SOC 101: Global Trade & Power Relations

Name:

Date:

Simulation Instructions

The global cotton market is at a standstill. West African nations have petitioned the International Monetary Fund (IMF) to address "unfair competition" caused by wealthy nations. You will represent one of three stakeholders. Your goal is to negotiate a trade agreement that serves your group's interests while navigating the pressures of the global economy.

ROLE A: US Cotton Producers The Protectionists

Context & Interests

You are industrial farmers in the American South. You rely on roughly $2-3 billion in annual government subsidies. Without these payments, your costs would exceed the global market price. You argue that these subsidies protect rural American jobs and ensure a stable national supply chain.

The Subsidy: It allows you to sell your cotton for less than it costs to produce.
Domestic Pressure: Local politicians depend on your votes to stay in power.

Your Objectives

Maintain current subsidy levels at all costs.
Argue that "Free Trade" shouldn't mean the destruction of domestic industries.
Propose that West African nations should focus on other crops instead.

ROLE B: West African Cotton Farmers The Disadvantaged

Context & Interests

You represent millions of small-scale farmers in countries like Burkina Faso and Mali. You produce cotton more efficiently than the US, but you cannot compete with subsidized prices. When the US floods the market with cheap cotton, your local prices drop, leading to extreme poverty and food insecurity.

The Hypocrisy: You are told to "liberalize" your markets while the US protects theirs.
Survival: Your national economies depend almost entirely on cotton exports.

Your Objectives

Demand the immediate removal of US cotton subsidies.
Call for "Level Playing Fields" as the only true form of Free Trade.
Seek emergency financial aid if subsidies are not removed.

ROLE C: The International Monetary Fund (IMF) The Arbiter

Context & Interests

You manage the global financial system. Your primary goal is "efficiency" and "economic growth." You provide loans to developing nations, but only if they agree to Structural Adjustment Programs (privatization, deregulation). While you theoretically support free markets, you are heavily influenced by your largest donors: the US and Europe.

The Strategy: You prioritize loan repayment and market stability above all else.
Power Dynamics: You can withhold funding from West Africa if they refuse to "modernize."

Your Objectives

Broker a deal that prevents economic collapse in West Africa.
Ensure both parties continue to participate in the global trade system.
Avoid directly condemning US subsidies to maintain your funding.

Opening Statement Notes

Draft your opening argument here. Focus on why your position is "economically necessary" for the global market.

The Free Trade Myth

Free Trade Lesson Plan

Role Play Scenarios Handout

Free Trade Slides

Free Trade Slides Revised

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