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If you believe that coffee producing firms have some degree of monopsony power, this is sustainable and again will increase profits but possibly worsen human misery for the poorest.
These are all "existence theorems." I would not be surprised to learn that current benefits from fair trade are positive...
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But since I am a development optimist, I have reservations about the institution in the longer run.
Exam question: How much of this analysis also applies to free-range vs. factory-farmed chickens? Hint: not all of it (why not?) Comments are open...and might you know of empirical work on how fair trade influences wages?
Tuesday 20 December 2005
http://www...
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Fair trade product
Go for fair trade, not free trade
International Coffee trade
Who benefits from fair trade?
In the previous section, Hobbes introduced the concept of "Power" and the restless human appetite to achieve it. He divides power into two kinds: Natural and Instrumental. Natural power derives from the faculties of the body or mind, such as stren...
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