Still catching up on my August reading. Important article by Peter Griffiths in the August edition of Prospect (it's subscription only, but it's worth it). He explains, from a position of greater knowledge than me, why my suspicion of the Fairtrade brand is justified.
I've always found the idea of some bunch of do-gooding westerners coming into a developing country and "helping" a tiny minority of producers to produce coffee, chocolate or cotton to sell at higher prices questionable. How do they choose who benefits from these higher prices and higher welfare standards? What about all the other producers, equally meritorious, who are not so chosen?
My doubts were not assuaged by a visit to the Fairtrade website, which sets out in some detail the terms and conditions, starting with this:
Small farmers can join Fairtrade if they have formed organizations (in co-operatives, associations or other organizational forms) which are able to contribute to the social and economic development of their members and their communities and are democratically controlled by their members.
The definition of social development gets a bit cloudy after that. The intentions are obviously good, but the whole concept is flawed. I am grateful to Griffiths for confirming that I do not need to comb through all the detail.
The idea of "fair trade" is important. It means ending western subsidies, setting minimum standards and allowing all farmers in the developing world - not just the lucky few - to compete on fair terms. That's why reformers should lobby world leaders to complete world trade talks, and not buy Fairtrade products.
See the ASI's report into this - they comprehensively destroy the idea that fairtrade is fair trade. Link provided below.
http://www.adamsmith.org/publications/economy/unfair-trade-20080225961/
Posted by: Roger Philp | Friday, 05 September 2008 at 11:04 AM
Next week, John Rentoul tells us why it's right to hunt Polar Bears.
Posted by: Neil McGowan | Friday, 05 September 2008 at 01:00 PM
so fairtrade isn't fair because the fairtrade company can't immediately involve every farmer that's in poverty, mmm I wonder why that is? and Im sure people who buy fairtrade would never think about lobbying for fairtrade at world trade talks and because they buy fairtrade products they are obviously oblvious to the problem or think that last bar of divine chocolate finally did the job.
john??? i???? eh?????
Posted by: James Tullett | Friday, 05 September 2008 at 03:14 PM
The Adam Smith institute condemmed Fairtrade in Spring, because it promoted: gasp; socialism. Anyone would think that there is a subtle campaign against Fairtrade being organised. Fairtrade is a free expression of consumers in the west that they do not want to buy products from multinationals: nothing wrong or anti market in that.
Yes politicians; do something about the trade barriers that prevent chocolate and coffee processing factories being set up in the developing world: but until that happy day: I'll buy Fairtrade becuase I do not want to support Nestle.
Posted by: Roger Bridge | Friday, 05 September 2008 at 04:04 PM
There's nothing like confirming your suspicions, without actually 'looking into the detail' as John Rentoul freely admits.
For his information, the Fairtrade label was established at the explicit request of struggling Latin American coffee farmers. It's progressively expanded to other products and regions as a result of producer interest in joining the programme as well as consumer demand. Producer organisations are not 'chosen' but apply if they choose themselves. It makes absolute sense for small farmers to band together in associations or co-operatives - as well as being able to respond to volume requests from buyers, it helps farmers improve their quality and it's pretty damn impossible to export your coffee single handedly if you've only got half a hectare. Well managed smallholder production has been shown by FAO studies to be incredibly efficient and better at maintaining biodiversity too.
Fortunately, there are many businesses, NGOs and individuals in this country who have looked at the detail, do understand the complexities of international supply chains, and have committed to working directly with producers in developing countries to mitigate the obvious injustices in current world trade through Fairtrade. It might not be perfect, and I've never yet met a Fairtrade supporter who disagrees with the need also for lobbying world leaders on international trade, but at least it's constructively supporting a growing number of producers to tackle disadvantage through trade.
Posted by: chocoholix | Friday, 05 September 2008 at 05:33 PM