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Half A Cheer For Fair Trade

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  • Philip Booth
  • Linda Whetstone

Abstract

The fair trade movement claims that the products it provides are sourced ‘justly’ and that purchasing fair trade products brings economic benefits for the poor. Whilst it is clear that fair trade might bring some benefits to particular groups, whether it brings significant net benefits to the poor in general is questionable. Moreover, the claim that fair trade transactions are more ‘just’ cannot be substantiated. Customers also might be surprised to learn that the majority of the Fairtrade Foundation's net income is spent on promoting its own brand.

Suggested Citation

  • Philip Booth & Linda Whetstone, 2007. "Half A Cheer For Fair Trade," Economic Affairs, Wiley Blackwell, vol. 27(2), pages 29-36, June.
    • Handle: RePEc:bla:ecaffa:v:27:y:2007:i:2:p:29-36
    DOI: 10.1111/j.1468-0270.2007.00727.x
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    Cited by:

    1. Martin Richardson & Frank Stähler, 2017. "Fair Trade," World Scientific Book Chapters, in: Dimensions of Trade Policy, chapter 17, pages 359-388, World Scientific Publishing Co. Pte. Ltd..
      • Martin Richardson & Frank Stähler, 2014. "Fair Trade," The Economic Record, The Economic Society of Australia, vol. 90(291), pages 447-461, December.
    2. Podhorsky, Andrea, 2015. "A positive analysis of Fairtrade certification," Journal of Development Economics, Elsevier, vol. 116(C), pages 169-185.
    3. Elisabeth Nindl, 2014. "An empirical assessment of Fairtrade: A perspective for low- and middle-income countries?," EcoMod2014 6866, EcoMod.
    4. Hindsley, Paul & McEvoy, David M. & Morgan, O. Ashton, 2020. "Consumer Demand for Ethical Products and the Role of Cultural Worldviews: The Case of Direct-Trade Coffee," Ecological Economics, Elsevier, vol. 177(C).
    5. Alexander Kadow, 2011. "The Fair Trade movement:an economic perspective," Working Papers 2011_05, Business School - Economics, University of Glasgow.
    6. Nindl, Elisabeth, 2014. "An empirical assessment of Fairtrade: A perspective for low-and middle-income countries?," Department of Economics Working Paper Series 160, WU Vienna University of Economics and Business.
    7. Reinstein, David & Song, Joon, 2008. "Efficient Consumer Altruism and Fair Trade," Economics Discussion Papers 2936, University of Essex, Department of Economics.
    8. Hayes, M.G., 2008. ""Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade"--A Comment," World Development, Elsevier, vol. 36(12), pages 2953-2961, December.

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