IDEAS home Printed from https://ideas.repec.org/a/bla/ecaffa/v29y2009i4p29-36.html
   My bibliography  Save this article

Evaluating The Criticisms Of Fair Trade

Author

Listed:
  • Alastair M. Smith

Abstract

This article critically examines some of the most common arguments used to support the view that Fair Trade should be rejected by consumers and businesses seeking to socialise their economic decisions. Overall the paper finds that the majority of such criticisms lack evidential rigour and sophisticated theory but instead rely on a high degree of rhetorical aptitude. While this does not naturally lead to the position that Fair Trade is necessarily beneficial, the conclusion reflects on a substantial amount of positive evidence to suggest that Fair Trade should not be abandoned by consumers or businesses.

Suggested Citation

  • Alastair M. Smith, 2009. "Evaluating The Criticisms Of Fair Trade," Economic Affairs, Wiley Blackwell, vol. 29(4), pages 29-36, December.
    • Handle: RePEc:bla:ecaffa:v:29:y:2009:i:4:p:29-36
    DOI: 10.1111/j.1468-0270.2009.01944.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0270.2009.01944.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-0270.2009.01944.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mann, Stefan, 2008. "Analysing fair trade in economic terms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2034-2042, October.
    2. Donaldson, John A., 2008. "Growth is Good for Whom, When, How? Economic Growth and Poverty Reduction in Exceptional Cases," World Development, Elsevier, vol. 36(11), pages 2127-2143, November.
    3. Becchetti, Leonardo & Costantino, Marco, 2008. "The Effects of Fair Trade on Affiliated Producers: An Impact Analysis on Kenyan Farmers," World Development, Elsevier, vol. 36(5), pages 823-842, May.
    4. Bruce Greenwald & Joseph E. Stiglitz, 2006. "Helping Infant Economies Grow: Foundations of Trade Policies for Developing Countries," American Economic Review, American Economic Association, vol. 96(2), pages 141-146, May.
    5. Hudson, John & Mosley, Paul, 2008. "Aid Volatility, Policy and Development," World Development, Elsevier, vol. 36(10), pages 2082-2102, October.
    6. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth," Introductory Chapters, in: One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton University Press.
    7. Collier, Paul, 2008. "The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It," OUP Catalogue, Oxford University Press, number 9780195374636.
    8. Bradley D. Parrish & Valerie A. Luzadis & William R. Bentley, 2005. "What Tanzania's coffee farmers can teach the world: a performance-based look at the fair trade-free trade debate," Sustainable Development, John Wiley & Sons, Ltd., vol. 13(3), pages 177-189.
    9. Kirsty Golding & Ken Peattie, 2005. "In search of a golden blend: perspectives on the marketing of fair trade coffee," Sustainable Development, John Wiley & Sons, Ltd., vol. 13(3), pages 154-165.
    10. David R. Henderson, 2008. "Fair Trade Is Counterproductive – And Unfair," Economic Affairs, Wiley Blackwell, vol. 28(3), pages 62-64, September.
    11. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
    12. 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.
    13. Bob Doherty & Sophi Tranchell, 2005. "New thinking in international trade? A case study of The Day Chocolate Company," Sustainable Development, John Wiley & Sons, Ltd., vol. 13(3), pages 166-176.
    14. Wade, Robert, 1987. "The Management of Common Property Resources: Finding a Cooperative Solution," The World Bank Research Observer, World Bank, vol. 2(2), pages 219-234, July.
    15. LeClair, Mark S., 2002. "Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade," World Development, Elsevier, vol. 30(6), pages 949-958, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Goff, Sarah C., 2016. "Fair trade: global problems and individual responsibilities," LSE Research Online Documents on Economics 68285, London School of Economics and Political Science, LSE Library.
    2. David Reinstein & Joon Song, 2012. "Efficient Consumer Altruism and Fair Trade Products," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 21(1), pages 213-241, March.
    3. John James Cater & Lorna A. Collins & Brent D. Beal, 2017. "Ethics, Faith, and Profit: Exploring the Motives of the U.S. Fair Trade Social Entrepreneurs," Journal of Business Ethics, Springer, vol. 146(1), pages 185-201, November.
    4. Useche, Pilar & Blare, Trent, 2012. "Seeds of Gold: How Environmental Considerations Influence Cacao Production Decisions for Small Landholder Households in Northwestern Ecuador," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124738, Agricultural and Applied Economics Association.
    5. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.
    6. Durevall, Dick, 2017. "Who Benefits from Fairtrade? Evidence from the Swedish Coffee Market," Working Papers in Economics 708, University of Gothenburg, Department of Economics.
    7. Claire Chambolle & Sylvaine Poret, 2013. "When fairtrade contracts for some are profitable for others," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 40(5), pages 835-871, December.
    8. Ken Peattie & Anthony Samuel, 2018. "Fairtrade Towns as Unconventional Networks of Ethical Activism," Journal of Business Ethics, Springer, vol. 153(1), pages 265-282, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alastair M. Smith, 2010. "Lack Of Rigour In Defending Fairtrade: Some Important Clarifications Of A Distorting Account – A Reply To Peter Griffiths," Economic Affairs, Wiley Blackwell, vol. 30(2), pages 50-53, June.
    2. Balineau, Gaëlle, 2013. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," World Development, Elsevier, vol. 44(C), pages 241-255.
    3. Vincent Terstappen & Lori Hanson & Darrell McLaughlin, 2013. "Gender, health, labor, and inequities: a review of the fair and alternative trade literature," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(1), pages 21-39, March.
    4. Elder, Sara D. & Zerriffi, Hisham & Le Billon, Philippe, 2012. "Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers," World Development, Elsevier, vol. 40(11), pages 2355-2367.
    5. Elisabeth Nindl, 2014. "An empirical assessment of Fairtrade: A perspective for low- and middle-income countries?," EcoMod2014 6866, EcoMod.
    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. Elisabeth Nindl, 2014. "An empirical assessment of Fairtrade: A perspective for low- and middle-income countries?," Department of Economics Working Papers wuwp160, Vienna University of Economics and Business, Department of Economics.
    8. Gingrich, Chris D. & King, Emily J., 2012. "Does Fair Trade Fulfill the Claims of its Proponents? Measuring the Global Impact of Fair Trade on Participating Coffee Farmers," Journal of Cooperatives, NCERA-210, vol. 26, pages 1-23.
    9. Peter Griffiths, 2010. "Lack Of Rigour In Defending Fairtrade: A Reply To Alastair Smith," Economic Affairs, Wiley Blackwell, vol. 30(2), pages 45-49, June.
    10. Colleen Haight & David R. Henderson, 2010. "Fair Trade Is Counterproductive And Unfair: Rejoinder," Economic Affairs, Wiley Blackwell, vol. 30(1), pages 88-91, March.
    11. J. McMurtry, 2009. "Ethical Value-Added: Fair Trade and the Case of Café Femenino," Journal of Business Ethics, Springer, vol. 86(1), pages 27-49, April.
    12. Useche, Pilar & Blare, Trent, 2012. "Seeds of Gold: How Environmental Considerations Influence Cacao Production Decisions for Small Landholder Households in Northwestern Ecuador," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124738, Agricultural and Applied Economics Association.
    13. Ana C. Dammert & Sarah Mohan, 2015. "A Survey Of The Economics Of Fair Trade," Journal of Economic Surveys, Wiley Blackwell, vol. 29(5), pages 855-868, December.
    14. Useche, Pilar & Blare, Trent, 2013. "Traditional vs. modern production systems: Price and nonmarket considerations of cacao producers in Northern Ecuador," Ecological Economics, Elsevier, vol. 93(C), pages 1-10.
    15. Peter Dobers & Minna Halme, 2009. "Corporate social responsibility and developing countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 16(5), pages 237-249, September.
    16. Alessandro Arrighetti, 2009. "Market Imperfections and Fair Trade," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    17. Becchetti, Leonardo & Conzo, Pierluigi & Gianfreda, Giuseppina, 2012. "Market access, organic farming and productivity: the effects of Fair Trade addiliation on Thai farmer producers groups," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(1), pages 1-24, March.
    18. Verteramo Chiu, Leslie J. & Gómez, Miguel I. & Kaiser, Harry M. & Yan, Jubo, 2014. "Socially-Responsible Certification Schemes for Smallholder Coffee Farmers: Economics of Giving and Consumer Utility," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170551, Agricultural and Applied Economics Association.
    19. Becchetti, Leonardo & Costantino, Marco, 2008. "The Effects of Fair Trade on Affiliated Producers: An Impact Analysis on Kenyan Farmers," World Development, Elsevier, vol. 36(5), pages 823-842, May.
    20. Sara D. Elder & Jane Lister & Peter Dauvergne, 2014. "Big retail and sustainable coffee: A new development studies research agenda," Progress in Development Studies, , vol. 14(1), pages 77-90, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecaffa:v:29:y:2009:i:4:p:29-36. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0265-0665 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.