why is fair trade replacing aid programmes?

Question

related tofair trade coffee market

Answer 1

Largely because just handing out aid fails to benefit the people who need it most, while food aid destroys what agriculture remains. If you can obtain corn, say, free of charge, then what incentive is there for farmers to grow it beyond their own requirement for subsistence?

You may recall that after the tsunami, the Thai prime minister said that they didn't need aid, what they needed was European markets opened to Thai goods. This is the real problem of protectionist blocks such as the European Union: Structures such as the Common Agricultural Policy create surpluses, which are dumped ont he world market at prices below the cost of production. This drives 'third' world farmers out of business.

The idea of 'fairtrade' is that it pays farmers directly for products from the 'third' world. Like the whole 'trade not aid' argument, it encourages economic growth and self-sufficiency rather than a reliance on aid.

Linked below is an o-ed from the Guardian newspaper which outlines some of the points.

Answer 2

Because when workers in second and third world countries own a share in the business they work in, and make a fair profit for the product they farm/produce (in many cases luxury items), rather than working for next to nothing with the big companies pocketing the rest, they can work themselves out of poverty. This is much better than aid programmes, most of which have well-paid staff who cream off most of the "aid funds" in wages, and who often have a vested interest (ie christian aid groups who will only give the aid to people who will join their religion). Fair trade means that these people are empowered, and not being used by companies who have no interest in putting any money back into their communities (who are the ones making all the money for them). It makes good sense, and means that the big companies will have to start treating their employees more fairly, or they'll eventually have no more employees, and go bankrupt. It's a bit like having a Union, or worker's co-operative.

Answer 3

www.oxfam.org.uk/what_we_do/issues/debt_aid/bp25_debt_hivaids.htm
This site gives an explanation of sorts and how fair trade works with aid programmes. Its about empowerment. Power to the people rather than giving money. The west is too quick to give handouts and not quick enough to help countries to stand on their own feet. What would be better cheap bottled water or a well built with local resourses by local people with water on tap. (excuse the pun). We are realizing that pouring aid into countries is not working, it is too quick and changes the social structure of tha area. Help locals to sustain the area creating wealth and work across the area. Forward thinking for a change, not quite there yet still too many big clongomorates with their noses in the third world.

Answer 4

if this is a homework question, you should really be looking it up, because there's plenty of info out there.

fair trade offers assistance in a way that is less of a "hand out" than aid programs. aid programs don't encourage development, but through fair trade, the country is encouraged to produce goods for trade. it also helps them strive to be competitive, to some degree, though free trade is more the program for that. fair trade helps those countries that cannot currently be competitive on their own.

Answer 5

Because it means that people can make a sustainable living for themselves instead of relying on charity which is only supposed to be a short term solution.