Fair Trade? Its Prospects as a Poverty Solution

by Victor V. Claar

Fair Trade is an enormously popular idea in Christian and secular circles alike. Who, after all, could be against fairness? Victor V. Claar, however, raises significant economic and moral questions about both the logic and economic reasoning underlying the fair trade movement. In this monograph, Claar suggests that, for all its good intentions, fair trade may not be of particular service to the poor, especially in the developing world.

Genres: Economics

70 pages, Paperback

First published January 1, 2010

About the author

Dr. Victor V. Claar is a professor of economics at Henderson, the public liberal arts university of Arkansas, where he specializes in teaching principles of economics courses, and also serves on both the graduate faculty and the Honors College faculty.

He is the author of Economics in Christian Perspective: Theory, Policy and Life Choices. Claar holds two graduate degrees in economics (M.A. and Ph.D.) from West Virginia University. Prior to arriving at Henderson, he taught for nine years at Hope College in Holland, Michigan. Professor Claar spent a recent year as a Fulbright scholar, giving lectures to graduate students at the American University of Armenia. He publishes regularly in peer-reviewed journals of economics, and recently published a short book about fair trade.

Reviews

[Sydney Ellis · Rating 2 out of 5]

This book does an excellent job of explaining the pitfalls of fair trade that often go unseen. However, free trade is presented as the ideal alternative without any address of its shortcomings. The conclusion ultimately leaves more questions than answers.

[Kyle McManamy · Rating 3 out of 5]

Interesting read questioning the tactics of fair trade, while highlighting some of its virtues. Written in the mid- to late 2000s, some of this discussion might be outdated, but not all of the logic rests on current statistics on price of coffee and current players in the Fair Trade movement. Interesting read, but doesn't settle the question. If nothing else, it will help one to ask more informed questions about this approach.

[Meg · Rating 5 out of 5]

Concise and succinct presentation of the economic issues involved with the fair trade movement. Highly recommend this quick read in evaluating the fair trade structure!

[Stan Shelley · Rating 5 out of 5]

Claar is an associate professor of economics at Henderson State University in Arkansas. He is a Episcopalean writing from a Christian perspective. The book particularly analyses the efforts to help coffee growers with fair trade prices. Claar concludes that coffee bean farmers are more hurt by this effort than helped by it.

[Kathleen Loucks · Rating 5 out of 5]

not what I expected! He recommends placing our efforts in increasing human capital (through education) and physical capital (through micro financing) vs. encouraging people to keep growing something that will keep them in poverty

[Brian · Rating 4 out of 5]

Good. Different angle to helping poor farmers. Recommend