Posts Tagged ‘Fair Trade’

Fair Trade and Gift Economy

Thursday, November 13th, 2008

After reading a comment made by Anok of Identity Check, I started looking into fair trade and gift economy.

“I find that for purposes of practicality - being that we live in a world that is not at the moment conducive to Anarchism of any real sort - the mixed economies that we are moving towards are best for the moment.

I myself, prefer fair trade barter and gift economies - keeping in mind that in my ideal Anarchist world the social structure would be very different than it is now.

The other aspect of Anarcho-capitalism that I take issue with is inequality. Class, or caste systems are inherent to capitalism, which is why most Anarchists oppose it. Now, when I talk about economic equality, I mean that each person’s contribution to society is deemed valuable, and equal in worth. Think about it - the factory worker’s job is as important as the waste management guy’s job, which is as important as a mother’s job to raise her child, which is as important as the seamstress, and teh farmer etc and so forth.

Without each part of society working together, society has a very hard time functioning. But in capitalist societies, those whose jobs are unsavory, pay less, or are simply deemed “fringe” or unworthy become the determining factor of that person’s social status in life.”, Anok

He was reacting to a post I made about anarcho-capitalism.

So what is fair trade and gift economy. Let’s ask wikipedia as it is usually a good way to start !

Fair trade is an organized social movement and market-based approach to empowering developing country producers and promoting sustainability. The movement advocates the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods.

So from what I understood the fair trade system is already here and is working fine to help people in less developed countries. To me this is really good since this is based on the following principles :

  • Market Access for Marginalised Producers
  • Sustainable and Equitable Trading Relationships
  • Capacity Building & Empowerment
  • Consumer Awareness Raising & Advocacy

It will therefore help small producers make a better living by including them in the economy and giving them access to the market. All this is based on the idea that a well informed consumer will stand up for fair trade and prefer to help small producers, and it actually work for a part of the population. The system is actually helping a lot of people in less developed countries, so it makes it good !

The only thing I start to wonder is what is the difference between the “fair market value” and the “market value”. In the end both are what the customer is willing to pay for a product. I must have my definitions wrong…

A gift economy is a social theory in which goods and services are given without any explicit agreement for immediate or future quid pro quo. Typically, a gift economy occurs in a culture or subculture that emphasizes social or intangible rewards for solidarity and generosity: karma, honor, loyalty or other forms of gratitude.

So now this is the part that I don’t agree with. It sounds like something wonderfull, but I don’t see how that could work. I know that there is already a part of “gift” in our current system (blood donation, charity, open source…), but in my opinion it can’t be the base of an economy. It can work in a small community, but now that everything is global, how could we switch to a gift economy without going back to the middle age ?

This system is based on the fact that everyone is nice and everyone is equal. It would be great, but we really are not. Jobs are also not equals, some are harder, some require a special strenght, some require special knowledge… and if no one has an incentive to get these skills, in the end no one will do the hard jobs.

Also, if someone want to start a business, he will have to work hard. At some point he could get people to help him out, since it’s impossible to imagine an economy without some kind of employees or partners. Well the guy starting the process will have put a lot of work into his project… but in the end he will get just as much as the guy that just joined the project. So what would he start the project in the first place ?

It would be great if people were just all altruists, but they are not. Some are, and it’s a good thing, but we need to realize that not everyone is ready to work hard for the same thing as the guy next door.

Another point made in this comment was :

The other aspect of Anarcho-capitalism that I take issue with is inequality. Class, or caste systems are inherent to capitalism, which is why most Anarchists oppose it.

To me it is hard to remove all inequalities, and this is sure that capitalism leads to problems of this kind. But there is no way that a global economy could work without problems. We could forget all about the globalization of exchanges and go back in time… but is this really going to happen ? Is this really going to work ?

But the thing that still bothers me about capitalism is not the extra hierarchy : if a hierarchy is prooved to be justified, why abolish it? Of course I’m not saying that all hierarchy are justified, but sometimes it is needed. The thing that bothers me is the fact that an anarcho-capitalist system would fail in providing help to the people in need. I haven’t seen a credible alternative to the state in that case.





If someone knows how a gift economy could work, please leave a comment. Also leave a comment if you know how an anarcho-capitalist economy could help the people in need.