COLONIALISM, A GLOBAL ECONOMY AND DEVELOPING COUNTRIES Justice and the global economy


Global trade is in some respects unjust to the peoples of developing countries. The following


issues relating to this will be examined: ●●


terms of trade


●● hypocrisy ●● democracy.


Terms of trade We have seen that the terms of global trade tend to favour First World producers of manufactured goods and services and tend to discriminate against Third World producers of primary products. Profi ts derived from coffee, for example, go overwhelmingly to First World manufacturers and retailers. Very little goes to the Third World farmers who grow and harvest coffee beans. The prices of Third World primary products are also allowed to fl uctuate wildly in the world market. This type of discrimination prevents Third World countries such as Uganda from developing economically and serve to widen the huge wealth gap that already exists between North and South. Justice demands that Third World producers be given


a fairer share of the profi ts that derive from what they produce. This is already being done on a small scale by voluntary bodies such as the Fairtrade (see box). It also needs to be done on a global scale by the First World governments and commercial interests that currently control world trade.


Fairtrade benefi ciaries. These Third World farmers are lucky. They are producing primary products for Fairtrade buyers. Under present global trade arrangements, however, most primary producers in developing countries are not rewarded fairly for their work.


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Fairtrade Fairtrade is an organisation that seeks to promote fairer global trade by ensuring that Third World producers: ●● are paid fairly for what they produce ●● operate in a way that does not damage their local environment


●● work in safe conditions. People can help to support these ideals by purchasing products that bear the Fairtrade logo. Fairtrade products are now available in many Irish shops.


Learn more


about Fairtrade on page 256.


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