Which so many issues on the table choosing one is a tough task. The point of studying coffee is not about the coffee, but about learning how rights are prioritized and by whom. Conveniently, I love drinking coffee, but that's not why I'm here.
After the first month my impressions on Fair Trade haven't changed much: it's a decent movement attempting to provide market-based incentives for the protection of certain "universal" economic rights that are determined primarily by concerned Westerners. Those most affected (the small coffee producers) see some benefits in many cases, but most individuals are unaware of what "fair trade" means let alone have the capacity to influence the policies which most affect them.
Ultimately, he who has the most money can set the rules of the game. Starbucks, a much despised company created with the commodification and destruction of coffeehouse culture, recently became the world's largest buyer of fair trade coffee. Some are concerned about the effect this will have on the balance of power in the construction of the policies. Time will tell. In the Fall I will begin research on the consumer-side of the discussion and see what 'fair trade' means there and what influence consumers and vendors have on setting the agenda of which rights are protected and how.
For now, I am working with (not on) a few coffee cooperatives here. Hopefully I can generate some sound research in the process of helping others.
2 comments:
Tim, I'd be interested in your reaction to this EconTalk podcast with Mike Munger on fair trade coffee and how it can actually do more long-term harm in communities (the argument being that encouraging economic dependence on agriculture is not the way to economic prosperity).
Hey Marina. Professor Munger had some really interesting points, but in all I think he misses the purpose of Fair Trade to break people out of systems of exploitation and dependency.
Fair Trade certification requires a direct connection between the buyer and seller to remove middlemen from the equation. Because only small farmers are eligible for fair trade certification, they are also required to be in a cooperative so they may participate more competitively in the global market.
Munger recommends investing in a corporation that wishes to build a factory in a developing nation as the model for development. This still creates systems of dependency and, at least in the free trade zone here in Nicaragua, further disempowers populations at risk. Most of the factory workers in this area do not own their own land, and have limited access to credit. Most fair trade farmers, on the other hand, typically own land and use the cooperative structure to better leverage lenders and gain access to credit.
A free economic market needs to include various economic models. If there is a demands for more "fairly" produced goods, than there aught to be those who produce it. Only 1-2% of all coffee sold is Fair Trade. A fear that this is going to keep the standard of living low for the entire nation is unfounded.
Post a Comment