LACK OF RIGOUR IN DEFENDING FAIRTRADE: A REPLY TO ALASTAIR SMITH

Peter Griffiths

Economic Affairs, 2010, vol. 30, issue 2, 45-49

Abstract: Alastair Smith (2009) claims to refute a few criticisms of Fairtrade. It is shown that his empirical evidence consists of anecdotes with no statistical or other evidential value, and that his economics is wrong. Though Fairtrade is an agricultural marketing system, he appears not to be aware of the literature on agricultural marketing or co‐operatives. Accordingly he makes statements not in accord with the accepted theory or evidence. He assumes, for instance, backward‐sloping supply curves and that the prices offered by state marketing boards are not affected by markets. There are ethical trading alternatives which avoid all the criticisms of Fairtrade.

Date: 2010
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