Friend Steve McMullen has a post regarding the ‘Fair Trade’ craze–that is, purchasing Third World agricultural products that cost more, but that are grown by farmers who are paid a fair wage. On one hand, it sounds like a great idea for people who can afford it to do a litle good. But there are some huge problems with it, as Steve points out:
What this does is create a whole network of people who depend on the guilt of rich Americans to live. They will spend time and money investing in growing coffee, they will train their children to grow coffee, and they will tell their friends to grow coffee, as long as Americans are willing to pay $6.00 a pound. The result is a huge over-supply of coffee, and coffee prices fall. Does this sound like a vicious cycle to anyone else?
And coffee is only the start. Do we really want to tell farmers who are barely getting by that the way to be successful is to invest in growing crops in an inefficient manner, and then convince rich people to buy their goods for a higher price than the market so that you can feed your children?
I’ve blogged about this before, slightly less benevolently than Steve, in regards to what I consider a particularly egregious style of this sort of thing, in which:
White American liberals enable African women to live at a subsistence level, learning and honing a craft that is completely useless without the assistance of those same white American liberals. Should the white American liberals ever decide to leave, the women will be left with no way to earn money whatsoever, having learned a craft that pays less than a penny an hour. They claim to believe in “building African self-empowerment the moral way,” but I cannot see what is either self-empowering or moral about any of this.
Another problem with Fair Trade products is that they are–I imagine–particularly suceptible to American & European economic problems. When times get hard, chances are good that the first things that are cut back on are the over-priced coffee and shea butter. It’s pretty clear to me that ‘fair trade’ is likely to be damaging in the long run, and were I a liberal, I might think that there should be some kind of restriction on it. That’s not the right way to go about it, of course.
Instead, what needs to happen is that different products must fill the feel good/fair trade niche, and those in the third world need to be provided with more sustainable ways to support themselves–and maybe even get rich. If those coincide, that’s great, but it’s unnecessary.
What will that look like? Maybe like this, maybe like this, maybe like something no one’s imagined yet. But even with that uncertainty, innovation is a surer–and even fairer–bet than ‘fair trade.’