"If we really want to aid international development, we should instead work to abolish barriers to trade in the rich world, and help the developing world to the same. Free trade is the most effective poverty reduction strategy the world has ever seen." So says the man from the Adam Smith Institute.
My question is how? How do I do that as an individual consumer?
Oh and with regard to their beef with fairtrade, the clue's in the question. After all, he IS the man from the Adam "Invisible Hand of the Market" Smith Institute...
There are (broadly) 3 models I understand... not being an economist but having an interest in how it all works:
1. Protectionism: 'If you want to export to us you must pay lots of money'. 2. Free trade: 'If you want to export to us you must give us equal rights to export to you' 3. Fair trade: 'I voluntarily give up some of my wealth in order to help you export your goods to me'
I fear that step 3 will never be understood by the likes of the Adam Smith Institute... it's too altruistic and isn't about profit.
Free trade would be fine if we were starting with a blank slate. But following years of developed, colonising nations restricting the development of industry in now-developing countries, it's a bit late to start talking about having free trade.
It's a bit like George Bush suggesting Cuba should have 'free and fair' elections.
I'm not a gifted economist, but my prayer is that fair trade carries on doubling in demand. The greater the demand for fair trade, the greater number of developing countries will benefit.
4 comments:
"If we really want to aid international development, we should instead work to abolish barriers to trade in the rich world, and help the developing world to the same. Free trade is the most effective poverty reduction strategy the world has ever seen." So says the man from the Adam Smith Institute.
My question is how? How do I do that as an individual consumer?
Oh and with regard to their beef with fairtrade, the clue's in the question. After all, he IS the man from the Adam "Invisible Hand of the Market" Smith Institute...
There are (broadly) 3 models I understand... not being an economist but having an interest in how it all works:
1. Protectionism: 'If you want to export to us you must pay lots of money'.
2. Free trade: 'If you want to export to us you must give us equal rights to export to you'
3. Fair trade: 'I voluntarily give up some of my wealth in order to help you export your goods to me'
I fear that step 3 will never be understood by the likes of the Adam Smith Institute... it's too altruistic and isn't about profit.
Free trade would be fine if we were starting with a blank slate. But following years of developed, colonising nations restricting the development of industry in now-developing countries, it's a bit late to start talking about having free trade.
It's a bit like George Bush suggesting Cuba should have 'free and fair' elections.
I'm not a gifted economist, but my prayer is that fair trade carries on doubling in demand. The greater the demand for fair trade, the greater number of developing countries will benefit.
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