Sunday, September 07, 2008

Surprise: Fair Trade Plays Favorites and Makes Poor Farmers Poorer

The unfortunate consequences of "fair trade", as quoted at ASI:

This is not just a matter of one lot of farmers receiving a little more and another lot a little less. It means subsidizing 1.5m coffee workers while paying 25m farm families - the coffee growers who are not part of Fairtrade – a lot less. Most of these are subsistence producers, whose income from coffee is tiny. Any fall in income will mean children dying from malnutrition or malaria.

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