Questions of moral principles, in this case, are somewhat controversial and have a dual nature. Firstly, from a certain point of view, the initially established relationship between businesses in the Global North and producers in the Global South does not affect moral issues since there is no theft or fraud in transactions between them. The question is about the distribution of benefits, accessibility, and equality of rights for all participants. However, the Global North has precisely made its wealth from a historical point of view through theft and fraud (Johannsen, 2016). The intervention of state bodies is also highly doubtful in this situation since none of the laws are violated. Self-regulation of the market also raises the issue of overpayment for a product based on the social responsibility of the issuing brand.
Secondly, as a consequence, the situation requires various changes, but a complete correction in the short term is impossible. Eliminating all the consequences of the uneven distribution of the times of colonialism is quickly possible only at the expense of federal opportunities, which will require a decisive intervention in market relations. Reducing interest rates or easing monetary policy in times of crisis unilaterally can be effective, but in the long term, they overshadow overall economic growth and lead to accelerated inflation, which can have a detrimental effect on the market (Sperber, 2019). However, the current pandemic situation, which has triggered an unprecedented economic crisis worldwide, shows that government intervention is necessary to keep the economy from stopping altogether.
Thus, in this case, the main problem is the use of Fair Trade precisely in the key of an intermediate solution between decisive intervention and self-regulation in a market where the need for change is ripe. However, the root of the problem is not the inequity between the wealth of the rich and the poor – Fair Trade discourages this fact (Johannsen, 2016). The foundation is laid more profound in the comprehensive dissemination of the possibility of private property, which has been cultivated since colonization. Market inequality is a symptom of this problem, and self-regulation is again not an appropriate solution. In the same way, the higher authorities are unlikely to change the system at such an entrenched level, given that private property, like personal space, has become an independent moral aspect, the violation of which is terrible by definition (Atalay, 2018). The inevitability of entering into unequal trade relations for the Global South creates the need to create programs similar to Fair Trade, which do not encroach on the fundamental values of society, but at the same time, have a particular impact on the market.
In the end, Fair Trade should not be the only alternative for companies in the Global South, as it could again provoke injustice against out-of-program organizations that overpay consumers. In any case, each change will have its price and a specific cost item. The change will require restructuring, and in any case, there will be dissatisfied people. Radical solutions with government intervention should be avoided to solve this problem as well as inaction. The introduction of such programs should be studied from different points of view and allowed to be applied as long as the positive impact outweighs all kinds of disadvantages and costs that come up in the process. The taste of coffee is also essential for the consumer; sometimes, it is decisive; in this connection, any product, regardless of participation in such programs, must have the best quality when entering the consumer goods market. It is an essential foundation from which to start solving more global problems.
References
Atalay, M. (2018). Moral justification of private property (Master’s thesis, Middle East Technical University).
Johannsen, K. (2016). Distributive Justice: The Case of Café Feminino. In Fritz Allhoff, Alex Sager & Anand Vaidya (eds.), Business in Ethical Focus, 2nd Edition. Broadview Press. pp. 706-710.
Sperber, N. (2019). The many lives of state capitalism: From classical Marxism to free-market advocacy. History of the Human Sciences, 32(3), 100-124.