Who benefits from fair trade?
...conservative commentator Philip Oppenheim...argued recently that in Britain, it's supermarkets that profit most from fair trade sales. They charge a premium for fair trade bananas, for example, while a "minuscule sliver ends up with the people the movement is designed to help"...
Here is more. In case you don't know, fair trade sells a product at a premium price, under the promise that the workers are treated better and paid more. But will that improve living standards? Hmm...this sounds like a problem in tax incidence theory. To make the best possible case for fair trade, I will assume the promise of good treatment is credible. |
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