Jun 28, · Foreign aid is one of the methods used by wealthy nations to help reduce poverty in the least developed countries. Such countries as the US and Canada have provided financial aid to a number of [ ] “Urban and Rural Estimates of Poverty: Recent Advances in Spatial Microsimulation in Australia” by Tanton, R, Harding, A, and McNamara, J Sep 21, · It is clear that rich countries has more access of living life appropriatly and should help people who are in need. Even for basic life such as food and housing, wealthly nations are always first in this matter amoung countries in the world | Band: May 28, · Essay on Population: Population is the most prominent problem of this century. The population of any country or region is the total number of people living in that country or region. The question of the population persists in almost all the nations of the world. The most populated countries as of now are China, India, [ ]
Social Injustice, Essay Sample/Example
The promise of the fair-trade movement is that coffee growers in poor nations will receive a higher price for coffee if it is produced in better working conditions with higher wages. Unfair prices: One of the most basic concepts in economics, remembered by Economics students long after they have forgotten everything else, is that prices are determined by the interaction of supply and demand.
If the world price cannot be changed by the farmer, then appealing to people to pay more than the world price is like begging; it is asking for a charitable donation, wealthy nations help poor nations essay. It might raise a bit of money for a few growers, but will not change the world price.
The best long-term solution is for the small coffee grower to switch to another kind of crop where he or she can earn a living, or even to leave farming for another occupation altogether. Here is an analogy: suppose a man tries to earn a living by collecting used aluminum cans from trash bins and selling them to a recycling center.
I work all day and only earn a few dollars. No, that would be foolish. But at this point we wish to point out that people can and do care for the natural world in many other ways than supporting fair-trade coffee.
The fair-trade movement is not necessary to care for nature in effective ways. Some success: Campaigns for fair-trade coffee, like all campaigns for charitable contributions, wealthy nations help poor nations essay bring some help for the people to whom the contributions are given.
But that does not mean the benefits outweigh the harm that is done. It is also necessary to consider the harm that comes to all the other coffee growers in the world, who receive lower prices when the fair-trade movement increases production beyond what the world market demands, as indicated by the world price for coffee.
In addition, the fair-trade movement keeps its coffee growers in a crop that can provide them with an adequate living only so long as they keep receiving these charitable contributions from others. It discourages them from changing to another crop or another occupation where they could support themselves for a lifetime without depending on subsidies.
In Fair Trade? Its Prospects as a Poverty Solution, economist Victor Claar identifies an economic harm that comes from an artificial increase of the price of some coffee above what the world market will bear that is, higher than the price set by world supply and demand. Paying some growers a higher price than the world market price for coffee encourages them to grow more coffee than the market actually demands.
Claar writes:. Thus, while there is too much coffee being grown relative wealthy nations help poor nations essay global demand in general, there is also not sufficient demand to purchase, at the fair trade price, all of the coffee being grown as fair trade coffee.
In both cases, wealthy nations help poor nations essay, there is simply too much coffee. The larger supply of coffee then depresses the price for other coffee growers that are not part of the fair-trade movement. Claar goes on to say that artificially raising the price for coffee only prolongs the problem of too much coffee on the world market:. If the fundamental problem with the coffee market is that prices are low because there is too much coffee, then it would appear that the fair-trade movement may be making matters worse rather than better because wealthy nations help poor nations essay increases the incentives to grow more coffee.
The price premium in fair trade products is a form of charitable transfer, and there is evidently no harm in that. But the problem with it, as compared with just giving people the aid in other ways, is that it encourages recipients to stay doing what they are doing—producing coffee. They get charity as long as they stay producing the crops that have locked them into poverty.
Charitable contributions to the poor are more efficiently given by other means, and such charitable transfers will never lead to a long-term solution for world poverty, wealthy nations help poor nations essay, or even for most growers of a single product, such as coffee.
In their chapter, Grudem and Asmus examine whether capitalism or human sin is to blame for the exploitation of poor countries. This post was previously published on Nov.
Did you enjoy this article? You can help us to empower Christians to transform the world through their work. Support IFWE today. such charitable transfers will never lead to a long-term solution for world poverty, or even for most growers of a single product, such as coffee. We live in a world of exploding opportunities and growing challenges. New technologies are transforming our lives. Despite intermittent economic…. Contact Information. Skip to content. Economics Twitter Facebook LinkedIn Email Subscribe Print.
This is not fair to the farmers, who then cannot make any money growing coffee. Care for nature : Fair-trade coffee strives to be organic, bird-friendly, and shade-growth oriented. Some success : Thousands of fair-trade coffee growers have already been helped by this kind of program.
However, those arguments are not as persuasive as they first appear. Is Our Helping Actually Hurting? Claar writes: Thus, while there is too much coffee being grown relative to global demand in general, there is also not sufficient demand to purchase, at the fair trade price, all of the coffee being grown as fair trade coffee.
Claar goes on to say that artificially raising the price for coffee only prolongs the problem of too much coffee on the world market: If the fundamental problem with the coffee market is that prices are low because there is too much coffee, then it would appear that the fair-trade movement may be making matters worse rather than better because it increases the incentives to grow more coffee.
Wayne Grudem Wayne Grudem is currently research professor of theology and biblical studies at Phoenix Seminary. He has published over twenty books, including The Poverty of Nations: A Sustainable Solution. InGrudem served as the general editor for the ESV Study Bible, wealthy nations help poor nations essay. All rights reserved. For reprint permissions, contact info tifwe. Receive IFWE's content right in your inbox. Further readings on Economics Anne Bradley 5 minute read.
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Rich v Poor Nations
, time: 4:00Does 'Fair-Trade' Coffee Help or Hurt Poor Nations?
Sep 21, · It is clear that rich countries has more access of living life appropriatly and should help people who are in need. Even for basic life such as food and housing, wealthly nations are always first in this matter amoung countries in the world | Band: The essay approaches this specifically from a humanitarian context where Singer argues that wealthy individuals are morally bound to question the common intuition that physical distance and the means of using money reduces our moral obligation to help compared with the difference between the affluent nations and the poor nations Jun 28, · Foreign aid is one of the methods used by wealthy nations to help reduce poverty in the least developed countries. Such countries as the US and Canada have provided financial aid to a number of [ ] “Urban and Rural Estimates of Poverty: Recent Advances in Spatial Microsimulation in Australia” by Tanton, R, Harding, A, and McNamara, J
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