Question

3. How does the Ignatian value of “cura personalis” or "care for the person" relate to the debate about free vs. fair trade? (Recall that “cura personalis” implies having concern and care for the personal development of the whole person. This implies a dedication to promoting human dignity and care for the mind, body and spirit of the person.)

Answer 1

Free trade and Fair trade have following differences:

- Pricing : Coffee's market price in the free market is dependent on the demand and supply trends. These farmers are price takers. While a corporate farmer has many resources available.

- Objectives: Free trade : to buy coffee at leat price from farmers. In fair trade, retailers may charge the customers extra for commodities. It is difficult to calculate how much extra is to be charged and how much money would reach to the farmers. Usually, with fair trade, the retailer benefit can far outweigh the farmer's benefit.

No, although fair trade may benefit some small farmers but overall it can do little good and more harm as,

- Fair trade can lower the income of the farmers as the premium charged to the customer may or may not reach the farmers.

- Fair trade would demand farmers to produce organically, which would increase the sales price and also lower farmers income (becaus of high costs in producing organically).

-Fair Trade Certification is Expensive

No, fair trade coffee is not sustainable for the mass market and it is a niche product.

The mass market works on the forces of demand and supply and is self- regulating whereas, fair trade is more profitable for retailers than the coffee farmers.

As fair trade aims for the betterment of the local producers and communities, which may or may not happen as mentioned above. While free trade does not contribute directly for the personal development of the whole person, but it helps in economic welfare of all countries.