Posts tagged with: Fair trade impact studies

Samuel Kampa recently reviewed Victor Claar’s monograph, Fair Trade? Its Prospects as a Poverty Solution. Kampa begins by commenting on how quickly the “fair trade” moment has gained popularity, especially among the college and post-college aged, but also in the church community. He says that young people “are doing one thing right: expressing sincere concern about world poverty.  If this concern can be channeled into effective action, great things can happen.  Of course, effective is the key word.”

First, he offers a short list of reasons, given by fair trade advocates, why the fair trade movement is necessary:

1) Many farmers and workers in the international community receive very low prices for foods and commodities and are forced to live on less than $2 a day.
2) Many of the foods that Western consumers eat have been harvested by grossly underpaid farmers and workers.
3) The fact that Western consumers benefit at the expense of impoverished farmers and workers is both unfair and morally undesirable.
4) Agencies like Fair Trade USA guarantee fairer prices for crops and commodities, vastly improving the quality of life of farmers and workers.
5) Fair trade products are more expensive than non-fair trade products, but fair trade farmers and workers are receiving fairer prices.
6) Fair trade materially benefits the lives of impoverished farmers and workers at little cost to the consumer.
7)  Therefore, consuming fair trade products is morally preferable to consuming non-fair trade products.

Kampa explains Claar’s conclusions about fair trade: “Far from improving the lot of the poor, fair trade actually hurts non-fair trade farmers, keeps fair trade farmers in relative poverty, and diverts money from more efficacious charitable endeavors.” Kampa offers the two main critiques against the movement from the monograph as: “(1) Fair trade economically damages non-fair trade farmers. (2) In the long term, fair trade does more harm than good to fair trade farmers.” He then points out that “if true, [these two critiques] damage premises 4-7 in the pro-fair trade argument outlined above.” (more…)