Rick Lowe
I've never been able to put a finger on the Fairtrade movement, I just knew there was something about it I was uncomfortable with.
And now the Institute of Economic Affairs (IEA) in Britain has released a paper that appears to help. [More here… and here…]
"In a new research paper released today (November 4, 2010), the Institute of Economic Affairs argues that claims by the Fair Trade movement are seriously exaggerated:
"Fair Trade’s selling point to customers is that by paying a premium and buying certified products they will help producers in developing countries. Although at the margins this may be true, research shows that fair trade is not a strategy for long-term development – conventional trade is often more effective. Yet campaigners expend a huge amount of time and resource into persuading people that Fair Trade is more successful than conventional trade in helping those in the poorest countries.
"Fair Trade is not a long-term development strategy and the model is not appropriate for all producers. Fair Trade’s proponents need to adopt some humility and accept that it is a niche market designed to benefit some producers; and is only capable of achieving a very limited objective."
See a report about the study in The Guardian here…
So for me the question remains: Is the Fairtrade movement accomplishing anything much at all?
Like most theories in economics, free trade, fair trade and open markets are mostly smoke screens and are of little substance.. In theory, what is there not to like about the ideals of fair trade, but in practice a nation’s trade programs and policies are controlled by the nation’s political elite.. Under the control of corrupt politicians free markets and fair trade principles always give way to corrupt business, trade and ethical practices.. For in the final analysis it is the Government of a nation that establishes its trade policies and not some biased economic think tank or international agency trying to promote its economic agenda.. Free trade requires freedom and a fair and honest government in order for a nation to thrive and prosper..