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List of Figures..................................................................................viiList of Tables...................................................................................ixPreface..........................................................................................xiIntroduction.....................................................................................11. A Movement or a Market?.......................................................................112. Coffee, Commodities, Crisis...................................................................363. One Region, Two Markets.......................................................................584. The Difference a Market Makes: Livelihoods and Labor..........................................935. A Sustainable Cup? Fair Trade, Shade-Grown Coffee, and Organic Production.....................1336. Eating and Staying on the Land: Food Security and Migration...................................1657. Dancing with the Devil?.......................................................................1998. "Mejor, Pero No Muy Bien Que Digamos": The Limits of Fair Trade...............................2329. Strengthening Fair Trade......................................................................247Conclusion.......................................................................................259Acknowledgments..................................................................................267Appendix: Research Methods.......................................................................271Notes............................................................................................289Bibliography.....................................................................................307Index............................................................................................319
There are collective and qualitative needs which cannot be satisfied by market mechanisms. There are important human needs which escape its logic. There are goods which by their very nature cannot and must not be bought or sold.... These mechanisms carry the risk of an "idolatry" of the market, an idolatry which ignores the existence of goods which by their nature are not and cannot be mere commodities. Pope John Paul II, Centesimus Annus, 1991
The market has no brain It doesn't love it's not God. All it knows is the price of lunch. Bruce Cockburn, "You've Never Seen Everything"
The unfairness of international trade has for centuries troubled many people who have witnessed its human and environmental effects. The terms of trade between North and South-the low prices paid for agricultural products relative to the cost of imports (on a national level) or the cost of living (on a household level)-have long been unequal, but they have worsened significantly for the global South since the 1970s. Such "unequal exchange" has a number of harmful effects: for example, subsistence farmers are displaced and hunger increases as land is converted to export crops and cheap-usually subsidized-agricultural imports undermine small producers' viability. Fair trade constitutes one attempt to address this structural injustice.
A SHORT HISTORY OF FAIR TRADE
The roots of the fair-trade movement, ironically, go back to the same postwar moment when the Bretton Woods institutions (the World Bank and the International Monetary Fund) and the General Agreement on Tariffs and Trade, or GATT-the precursor to today's WTO-were being created. From its inception, the movement has contained at least two distinct (though sometimes overlapping) currents-a "development" strain and a "solidarity" strain.
In the "development trade" approach, charities in the United States and Europe, usually linked to churches, began trying to create markets for the products of impoverished and displaced people. The Mennonite Central Committee established trading links in the late 1940s with poor communities in the Southern United States to generate employment and income. An increasing number of these efforts, later known as Alternative Trading Organizations or ATOs, began to emerge in the 1960s and 1970s. Some initiatives developed networks of church-based sales and stores, such as Ten Thousand Villages, which grew out of the Mennonite effort, and SERRV, an initiative of the Church of the Brethren. Another facet of this approach came from large development and religious agencies working in the global South, such as Oxfam, Bread for the World, Caritas, and others. These groups helped found partner cooperatives and associations in Southern nations that organized disadvantaged groups to export their products, principally handicrafts. The ATOs in Europe framed their work as "alternative trade." They established a network of "world shops" in many cities to sell these craft products, as well as some coffee and tea. While the total volume of this trade was negligible, sales did grow rapidly, and the profile of alternative trade increased to the point where it began to take on movement status.
However, many new trading groups, especially in Europe, were associated with secular activist movements on the political Left, and this solidarity focus has also been fundamental in shaping fair trade's identity. Twin Trading in Britain was founded in the 1970s to generate markets for products from socialist countries such as Mozambique, Cuba, North Vietnam, and later Nicaragua, whose access to consumers in the rich countries was partly or entirely blocked. Oxfam Wereldwinkels in Belgium and Stichting Ideele Import in the Netherlands emerged from the same tradition. In the early 1980s, U.S. groups opposing the government's policies in Central America sold "Caf Nica" in violation of the official embargo on Nicaraguan imports. The cry of this nascent movement was "trade, not aid"-an attempt to differentiate its philosophy of local development and empowerment through trade from the paternalism of charity and the inefficiency and corruption of foreign aid by (and to) governments. These solidarity groups viewed the creation of alternative trade networks as part of a much larger critique of capitalism and the global economic system. Pauline Tiffen, a fair-trade pioneer formerly with Twin in London, recalled what was likely the first use of the phrase "fair trade": "We organized a conference, 'Who Cares about Fair Trade?' And in that case I think the choice of fair was a deliberate decision to broaden a concept that was for us quite anticapitalist. Like alternative as in alternative system, a parallel system to the market, a challenge to the capitalist system."
In 1988 came a watershed event for fair trade-the creation of the Max Havelaar label. Indigenous Mexican coffee farmers from the UCIRI cooperative in Oaxaca had approached the Dutch development aid organization Solidaridad two years earlier with an unprecedented proposal. After several years of selling small amounts of coffee through world shops, UCIRI (which was led by a Dutch liberation-theology priest, Franz Vanderhoff Boersma) wanted access, on equitable terms and in larger quantities, to European consumer markets. Essentially, the cooperative was asking the European alternative trade movement to go beyond its...
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