The implications of global trading for North/South relations: a case for fair trade
Creators: name: Quinn, Alyson
Publisher: name: University of British Columbia
Year: 2009

description: Since mercantilism, which began in the mid 1600s, there have been numerous systemic changes in the global trading system. The most significant changes have been colonialism, the slave trade, peasant enclosures, industrialization and the formation of global economic institutions. Each one of these has had a marked effect on the distribution of resources and the wealth generated from their manufacture. Mercantilism, a theory related to trade and commerce, brought about intense competition amongst Northern countries in order to secure markets and resources. Colonialism was a way of assuring traders access to both primary resources and overseas markets in Southern countries. This pattern of trading whereby Southern countries provide the raw resources for the benefit of those in the North is still relevant, and has contributed significantly to divisions in wealth between the hemispheres. By the early 1800's mercantilists posed a threat to the aristocratic classes, which found themselves land rich but money poor. This, along with the growing movement towards industrialization, led to the eviction of peasants from land they had lived on for centuries. Two sources of cheap labour became available. Peasants who were desperate to find work in order to survive, and those deemed to be slaves from the developing world. Their labour was used to clear land for cultivation and for factory work. This combination of cheap labour and access to primary resources from the South enabled Northern countries to forge ahead with the industrialization of their economies. The year 1944 was an important year for global trading. Three institutions, namely the International Monetary Fund (IMF), the World Bank and the General Agreement on Tarriffs and Trade (GATT) were formed shortly thereafter. These international organisations would help solidify globally the ideology of laissez -faire economics. They would also play a direct role in influencing Southern governments to reduce trade barriers. It is claimed by critics that the IMF, the World Bank and GATT have used their power to uphold policies which have pried open Southern economies for the gain of those in the North. Critics believe these policies have been particulary negative for those living a subsistence lifestyle. Poverty in the developing world is currently at catasrophic levels with 34,000 children dying every " day from malnutrition and disease. Some charge the IMF, World Bank and GATT for increasing the vulnerability of the poor and ecological destruction. Fair trade is a system of trade which deliberately seeks to establish a more equal basis of exchange between the two geographical hemispheres. It helps to counter some of the imbalances of the current trading system. With the commitment of Alternative trading organisations (ATO's) thousands of men, women and children have secured a lifestyle which is both economically viable and ecologically sustainable. The challenge for fair trading is to apply alternative trade models more widely, and to promote fair trading as a part of mainstream commercial activity. One way the fair trading system is doing this is through labelling products sold in supermarkets with a fair trade label. Those products with a fair trade label have passed the fair trading criteria agreed to by the International Federation for Alternative Trading. Social Work is one of many professions that could help support fair trading. By organising fair trade networks as part of social development practice, social work could be active in supporting an economic system which empowers those who are most disadvantaged, and thereby reduces the inequality perpetuated by the current trading system. There are a number of other key roles for social workers. They could educate the public about global economic issues through conferences, workshops and writing educational material. Another role for social workers is that of negotiation. Social workers in the international development field would be in a good position to link Southern producer groups to Northern fair trading businesses. They could also link socially responsible business in the North to marginalised groups in their own countries. A third role for social workers committed to fair trading, is research. Topics could include ongoing analysis of the social and environmental effects of the current trading system, exploring the effectiveness of various alternative trading models and research on factors that could help facilitate the growth of socially responsible business. There are three international bodies which help social workers maintain a global perspective. They are the IFSW (International Federation of Social Work), the LASSW (International Association of Schools of Social Work) and the ICSW (International Council on Social Welfare).