Comments on: Trade policy and the food crisis: conflicting views http://davostoseattle.wordpress.com/2008/06/27/trade-policy-and-the-food-crisis-conflicting-views/ "Before you've finished your breakfast this morning, you'll have relied on half the world." -- Martin Luther King, Jr. Thu, 05 Nov 2009 23:16:15 +0000 http://wordpress.com/ hourly 1 By: Andrew http://davostoseattle.wordpress.com/2008/06/27/trade-policy-and-the-food-crisis-conflicting-views/#comment-3 Andrew Wed, 02 Jul 2008 11:08:16 +0000 http://davostoseattle.wordpress.com/?p=39#comment-3 I wrote an article recently (I may try to get it in a student paper in September) about fair trade. I was trying to point out, as you have been saying, that the concept is more complex than a lot of people seem to think. I didn't take sides for or against fair trade, but it should be scrutinised a bit more thoroughly. It's too easy to see it as some kind of panacea. I wrote an article recently (I may try to get it in a student paper in September) about fair trade. I was trying to point out, as you have been saying, that the concept is more complex than a lot of people seem to think. I didn’t take sides for or against fair trade, but it should be scrutinised a bit more thoroughly. It’s too easy to see it as some kind of panacea.

]]> By: James http://davostoseattle.wordpress.com/2008/06/27/trade-policy-and-the-food-crisis-conflicting-views/#comment-2 James Fri, 27 Jun 2008 20:42:21 +0000 http://davostoseattle.wordpress.com/?p=39#comment-2 A rather worrying thought occurs to me whilst reading these last few posts regarding my foremost conviction that Fair Trade is a good idea. I am not an economist--as I am sure will be apparent--however I assume that it is uncontentious that whilst actual food loss in terms of failed crops and shortfalls exacerbate the present 'Food Crisis' the leading cause is that, in order to maximize their ability to feed themselves and their own dependents, merchants in 'poor' countries would rather sell to purchasers in 'rich' countries from whom they can obtain a higher price. How then does the idea of Fair Trade fit into this? What should 'rich' countries pay for produce from 'poor' areas of the globe in order to ensure that: A. We do not exacerbate the 'crisis' further by buying at a higher price outbidding locals, and B. We do not screw third world traders over by offering prices artificially low--so that locals can compete and resources stay in the area--helping to promote local poverty. It seems that global fair trade could only support economies in 'poor countries' if people in them were not themselves consumers; otherwise it could lead to the draining of resources from that area, leading to problems such as the 'present' 'food crisis'. May be we advocates of fair trade should really think hard about of what calculating a 'fair price' is constituted. A rather worrying thought occurs to me whilst reading these last few posts regarding my foremost conviction that Fair Trade is a good idea. I am not an economist–as I am sure will be apparent–however I assume that it is uncontentious that whilst actual food loss in terms of failed crops and shortfalls exacerbate the present ‘Food Crisis’ the leading cause is that, in order to maximize their ability to feed themselves and their own dependents, merchants in ‘poor’ countries would rather sell to purchasers in ‘rich’ countries from whom they can obtain a higher price.

How then does the idea of Fair Trade fit into this?

What should ‘rich’ countries pay for produce from ‘poor’ areas of the globe in order to ensure that:

A. We do not exacerbate the ‘crisis’ further by buying at a higher price outbidding locals,

and B. We do not screw third world traders over by offering prices artificially low–so that locals can compete and resources stay in the area–helping to promote local poverty.

It seems that global fair trade could only support economies in ‘poor countries’ if people in them were not themselves consumers; otherwise it could lead to the draining of resources from that area, leading to problems such as the ‘present’ ‘food crisis’.

May be we advocates of fair trade should really think hard about of what calculating a ‘fair price’ is constituted.

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