Comments on: The Problem of Fair Trade http://www.cuca.org.uk/2007/11/05/the-problem-of-fair-trade/ The largest, most active political society in Cambridge University Thu, 20 Nov 2008 11:07:29 +0000 http://wordpress.org/?v=2.6.3 By: Hugo Hadlow http://www.cuca.org.uk/2007/11/05/the-problem-of-fair-trade/#comment-3 Hugo Hadlow Mon, 05 Nov 2007 21:19:24 +0000 http://www.cuca.org.uk/wordpress/2007/11/05/the-problem-of-fair-trade/#comment-3 I just finished Paul Collier's "The Bottom Billion", a book about why the poorest countries in the world are stuck, or even becoming absolutely poorer, and what can be done about it. His conclusions are that more aid is not the answer (it must be targeted better), but also that the problem will not be fixed automatically by growth. Growth is the answer, but we have to kick-start it. He has an amusing section about how, while the west is not completely responsible for Africa's problems, some people do have to take a fair amount of responsibility: Christian Aid. Their campaigning against capitalism and free trade is not going to help anyone. Sean Gabb has a neat write-up on fair trade. http://www.seangabb.co.uk/flcomm/flc135.htm The biggest problem with fair trade, as I can see, is that it locks people into a particular market. It stops them from changing from coffee to another crop or job that the country may have a comparative advantage in, or that they may ultimately make more money from. I just finished Paul Collier’s “The Bottom Billion”, a book about why the poorest countries in the world are stuck, or even becoming absolutely poorer, and what can be done about it.

His conclusions are that more aid is not the answer (it must be targeted better), but also that the problem will not be fixed automatically by growth. Growth is the answer, but we have to kick-start it.

He has an amusing section about how, while the west is not completely responsible for Africa’s problems, some people do have to take a fair amount of responsibility: Christian Aid.

Their campaigning against capitalism and free trade is not going to help anyone. Sean Gabb has a neat write-up on fair trade. http://www.seangabb.co.uk/flcomm/flc135.htm

The biggest problem with fair trade, as I can see, is that it locks people into a particular market. It stops them from changing from coffee to another crop or job that the country may have a comparative advantage in, or that they may ultimately make more money from.

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