Home > A closer look at Trade Justice
In a world of relatively scarce resources, it is rational to assume people will compete to survive.
It was under these conditions that the theory of free trade was developed by Adam Smith in his series of books entitled The Wealth of Nations in the late 18th Century. Proponents of free trade believe competition makes the most efficient use of scarce resources, because without trade barriers and restricitions of entry to markets, allocation occurs through the price mechanism. The hope is the wealth created will benefit all.
However those conditions do not exist any longer. In a world of relatively abundant resources, it is rational to assume people will co-operate to survive. In these circumstances, to compete becomes illogical, because it produces winners and losers when there is no need.
The rapid technological revolution of the last 30 years has created huge efficiency savings providing unparalleled productivity and increases in output. Allied to globalisiation it has shrunk the world in terms of communication - surely we have never been better placed to enter a golden age of trade, peace and prosperity. But although our global ties are closer than ever before, the main economic model dictates that we compete against each other and on unfair terms resulting in rich countries gaining relative affluence for their citizens, while people in poorer nations live in relative poverty.
Maybe the time has come for humanity to develop a new economic model to reflect modern times, one based on co-operation that shares the relatively abundant resources of the Earth with all human beings. Under these conditions, it becomes irrational that people die in disadvantaged parts of the world from starvation and disease when food and medicine is plentiful elsewhere. It also makes sense that everyone should enjoy a decent standard of living.
Perhaps the first steps in acknowledeging this new reality is the fair trade movement and the trade justice campaign, which seek to make trade fairer between rich and poor nations, with the hope this will lead to the eventual elimination of world poverty.
At an individual level, the fair trade movement offers consumers the choice to co-operate with third world producers when they buy fair trade goods, because they pay a premium above the market price.
Collectively, The Trade Justice Movement is an organisation of many bodies including trades unions, aid agencies, environmental and human rights campaigns, fairtrade organisations, faith and consumer groups. It campaigns for fair not free trade. Its member page has links to many websites. You can vote for a petition calling for trade justice that will be presented to the UK Government at the end of 2005.
Britain is hosting the G8 summit this year at Gleneagles in Scotland, paying special attention to measures to reduce poverty, especially in Africa, and climate change.
Oxfam is campaigning at www.makepovertyhistory.org and you can send an e-mail to the Prime Minister in support of trade justice from their site. You can also buy a white band to wear in support of trade justice from there.
Christian Aid provides a good overview upon trade justice on its site.
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