Monday 30 April 2012

Phillip Booth representing the richman's think tank, the IEA...

"Prof Philip Booth is editorial and programme director at the Institute of Economic Affairs"
I have been investigating interesting comments on his which can be read here.
Personally, the top comment sums up the situation for me perfectly. I've highlighted my favourite line!
However, the second comment raises some interesting points about the CAP, although I do not agree with the users opinion on Fairtrade being a 'noisy and visible campaign' when in actual fact Fairtrade attempts to raise awareness for the CAP and the people behind Fairtrade openly oppose it (source). Just goes to show, don't believe everything you read on the internet! Especially because people like hondaboy2001 and pragmatist can pop up at any occasion and talk bollocks. Comments can be viewed below.

"DivineSophi's comment says it all for me. We hear the same arguments over and over again from the idealogues opposed to Fairtrade apparently because it upsets their view of the world informed by a set of narrowly defined economic 'laws'. Yet in the meantime millions and millions of people are acting together, inspired by those like Sophie who have set out to change things throuigh action rather than talk. Fairtrade may not save the world, but it does do good and is a reminder that people do not always act in their self interest and that solidarity and empathy are still powerful motivators for human behaviour. Why do these people find that so upsetting? Are they saying that the majority of british shoppers who think that Fairtrade is a good idea (based simply on the principle that people should get a fair deal for their hard work) are all wrong, or deluded or unable to think for themselves? And for those who go on about EU subsidies, CAP etc, well it isn't an 'either - or' situation and if they bothered to visit the Fairtrade Foundation website they may be suprised to find that the Foundation is running a campaign right now to raise awareness of the impact of EU and US subsidies on poor cotton farmers in West Africa and is working hard to get these trade distorting subsidy regimes changed. More than the IEA is doing as far as I can see?"

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"One of the unfortunate by-products of noisy and visible campaigns like Fair Trade is that they deflect attention from much more important issues - in this case the crushing protectionism of the EU and the USA, in particular, which denies economic opportunities to hundreds of millions of poor farmers.
Whilst most consumers are aware of what the Fair Trade symbol stands for - at least in the abstract - they do not understand what the CAP is and what impact it has on poor farrmers. Yet the CAP is responsible for keeping over 400 million Africans in abject poverty and will undoubtedly be viewed by future historians as one of the most heartless, ruinous and destructive policies ever created.
The CAP is effectively an enormous fence thrown up around Europe to prevent farmers in poor countries from selling their agricultural produce to us. Inside the fence, we tax European citizens more to fund subsidies to uneconomic farms all over Europe, which then produce food at multiples of the prevailing World price. Thus not only do we pay more in tax but we also pay more in the shops for our food than we should.
But the real impact is on the poor overseas. In many African countries, for example, the only sector they can compete in is agriculture and by taking that possibility away from them we deny them the possibility to grow their economies. At the same time we pressure them to open their own markets to our manufactured goods and specialist services which they cannot produce economically themselves.
To call this an uneven playing field is a massive understatement. It is a villainous policy with no moral justification whatsoever.
The Fair Trade lobbyists bang their drum loudly enough that no other voices can be heard. The 'crowding out' effect is dramatic. Consumers get to salve their consciences by buying fair trade bananas when in fact what they should be doing is voting into power politicians who are opposed to the CAP and will fight to open Europe's markets to imported food.
In the final analysis it is all about results, surely? What can the Fair Trade campaign hope to achieve, even in its most wildly optimistic forecasts? A 1% improvement in living standards in poor countries?
Scrapping the CAP would lift hundreds of millions out of poverty and in a very short space of time yet no action is taken because everyone is looking the wrong way. The Fair Trade lobby should recognise that they themselves are part of the problem."
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"Trouble is, if you look into it, you find it's only the 'rich' farmers who can afford to join up!
Also, the money does not go to the poor worker, but rather to the landowner.
Really, there's nothing fair about Fair Trade!"  - hondaboy2001
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"
Thank you for expressing a view that I have long held. Unfortunately, too many people, doubtless well meaning people, have jumped on the "fair trade" bandwaggon without proper thought to its consequences. They get a warm glow of virtue from buying "fair trade" goods but don't grasp that they are distorting the market. However, it gives the chattering class something to talk about at dinner other than the alleged joys of organic food." - pragmatist

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