Home
/
RELIGION & LIBERTY ONLINE
/
Review & Audio: Evaluating the Fair Trade Movement
Review & Audio: Evaluating the Fair Trade Movement
Dec 17, 2025 9:39 PM

Samuel Kampa recently reviewed Victor Claar’s monograph, Fair Trade? Its Prospects as a Poverty Solution. Kampa begins menting on how quickly the “fair trade” moment has gained popularity, especially among the college and post-college aged, but also in the munity. He says that young people “are doing one thing right: expressing sincere concern about world poverty. If this concern can be channeled into effective action, great things can happen. Of course, effective is the key word.”

First, he offers a short list of reasons, given by fair trade advocates, why the fair trade movement is necessary:

1) Many farmers and workers in the munity receive very low prices for foods modities and are forced to live on less than $2 a day.

2) Many of the foods that Western consumers eat have been harvested by grossly underpaid farmers and workers.

3) The fact that Western consumers benefit at the expense of impoverished farmers and workers is both unfair and morally undesirable.

4) Agencies like Fair Trade USA guarantee fairer prices for crops modities, vastly improving the quality of life of farmers and workers.

5) Fair trade products are more expensive than non-fair trade products, but fair trade farmers and workers are receiving fairer prices.

6) Fair trade materially benefits the lives of impoverished farmers and workers at little cost to the consumer.

7) Therefore, consuming fair trade products is morally preferable to consuming non-fair trade products.

Kampa explains Claar’s conclusions about fair trade: “Far from improving the lot of the poor, fair trade actually hurts non-fair trade farmers, keeps fair trade farmers in relative poverty, and diverts money from more efficacious charitable endeavors.” Kampa offers the two main critiques against the movement from the monograph as: “(1) Fair trade economically damages non-fair trade farmers. (2) In the long term, fair trade does more harm than good to fair trade farmers.” He then points out that “if true, [these two critiques] damage premises 4-7 in the pro-fair trade argument outlined above.”

Kampa also discusses the points in which he disagrees with the monograph:

First, Claar ignores the role that fair trade plays munity development. Portions of the premiums that are paid to fair trade collectives go directly to health care, educational initiatives, and initiatives pertaining to women’s equality in the agricultural workplace; each of these initiatives could munities the impetus to change their crop production if they so desired. Second, fair trade continues to receive support from many fair trade farmers and highly experienced NGOs (like Oxfam), thus suggesting that fair trade isn’t entirely bunk. Third, Claar’s argument is heavily theoretical and lacks appeals to empirical research. Fourth, my own lack of economic expertise makes it impossible for me to make a fully informed mendation regarding plex economic issue. However, despite the apparent weaknesses in Claar’s thesis and the obvious weaknesses in my own background, I do still find myself supporting Claar’s position.

After pointing out the fair trade movement’s failings, Kampa decides to end on a positive note, focusing on organizations that he believes are working to alleviate poverty, such as Compassion International, GiveWell, and Oxfam. He also points out that even if Claar is absolutely incorrect in his assessment of the industry, caring individuals would still do more good to donate to proven charities instead of paying a premium on fair trade coffee. You can read his entire review here.

If you’re interested to learn more about the plicated topic of fair trade, you can listen to this audio. Victor Claar recently gave an interview with Kevin Boling for his radio program, Knowing the Truth. They discuss various facets of the fair trade movement, Claar’s monograph, and the work of PovertyCure. You can listen to the entire radio show below:

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Does Microfinance Help the Poor?
This week at the Institute for Faith, Work and Economics, contributor James Clark asked, “Can microfinance really help the poor?” His conclusion: yes microfinance can work, but with certain caveats. In the last decade, microfinance has e a popular strategy in poverty alleviation, yet many economists and philanthropists often call its effectiveness into question. In his article Clark says that “Christians have embraced microfinance as a solution to poverty that helps the poor help themselves, but we must ensure that...
Explainer: What You Should Know About the Republican Party Platform (Part II)
Note: This second article in a two-part series on the Republican Party Platform. Part I can be found here. In the previous articlewe looked atsummary outline of the Republican platform as it relates to several non-economic issues covered by the Acton Institute. Today, we’ll look at the GOP’s economic agenda as laid out in the platform. Because the document is long (66 pages) and covers an extensive variety of economic-related areas (agriculture, energy) this list won’t be exhaustive. But it...
How Doctors Send You the Bill for Their Student Loans
A solid case could be made that the most powerful natural law in the universe is the “law of unintended consequences.” It’s definitely the dominant force when es to public policy. For example, in 2007 Congress created the Public Service Loan Forgiveness program, which was designed to encourage young workers to seek government and nonprofit jobs that pay far less than what they’d get in the private sector. The program forgives the remaining balance on direct loans after a borrower...
Faded Memories Are Leading to a Rejection of Free Markets
After almost a hundred years of seeing the effects of socialism and other government interventions in the market, American attitudes began to change in the 1980s and 1990s. The benefits of deregulation and privatization began to seem obvious and more people began to embrace free enterprise. But as Daniel Yergin notes, there is now a shift away from markets due partially to “fading memories of the old order—or no memories at all.” Voters under 30 were either very small or...
Economics Is for Everyone
People have strong opinions on a variety of subjects in which they don’t have an advanced degree or training. Yet when es to economics many people defer to “experts.” But asHa-Joon Chang, a South Korean economist who specializes in development, says, “Economics is for everyone.” Chang argues that we shouldn’t rely on experts to tell us what is true about economics (because they probably don’t know) but instead rely on our monsense to help us make sense of plicated world....
Is free trade a form of warfare?
Throughout his presidential campaign Donald Trump has repeatedly claimed that Mexico is “killing us on trade” because of the North American Free Trade Agreement (NAFTA). This metaphor of trade as war or conflict is mon trope among leftists. But is it true? Are Americans harmed by trade deficits? As Johan Norberg explains this notion is “dead wrong.” And to see why we just have to look at the iPhone. ...
Now Available: Kuyper’s ‘Pro Rege: Living Under Christ the King, Volume 1’
How do we live in a fallen world under Christ the King? In partnership with the Acton Institute, Lexham Press has now released Pro Rege: Living Under Christ the King, Volume 1, the first in a three-volume series on the lordship of Christ. Originally written as a series ofarticles for readers of De Herault (The Herald), the work was designedfor “the rank and file of the munity in the Netherlands,” not academic theologians, offering a uniquely accessible view into Kuyper’s...
Explainer: What You Should Know About the Republican Party Platform (Part I)
During the recent Republican National Convention the GOP delegates voted to adopt their party’s platform,a document that outlines the statement of principles and policies that the party has decided it will support. Although the document is not binding on the presidential nominee or any other politicians,political scientists have foundthat over the past 30 years lawmakers in Congress tend to vote in line with their party’s platform: 89 percent of the time for Republicans and 79 percent of the time for...
Paul Ryan emphasizes community in fight against poverty
Last week, House Speaker Paul Ryan sat down with NPR to discuss, among other things, poverty. As the highest ranking member of the House, Ryan has a crucial opportunity to change the way the government addresses poverty. In his plans to confront this issue, Ryan munity efforts and local solutions central. During the last four years, Ryan made visits to several poverty-stricken areas munity organizer Bob Woodson in order to better understand the challenges these munities face. Through these visits,...
New book explores significant relationship between religious and economic freedom
On sale now at the Acton Book Store The role of economic liberty in contributing to human flourishing and mon good remains deeply underappreciated, even by those who are dedicated to religious liberty. – Samuel Gregg Gregg is acontributor of One and Indivisible: The Relationship Between Religious and Economic Freedom, on sale now in the Acton Book Shop. Compiled by Kevin Schmiesing, the book contains 13 essays from highly acclaimed authors, speakers, and religious leaders, including Michael Matheson Miller, Anielka...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved