Why
Should People Of Faith Be Talking About Trade?*
As
consumers, we rarely consider the effect of our purchasing
decisions on the livelihood of small farmers, the
rights of women and children, wages or working conditions,
or the sustainability of the environment. People of
faith are increasingly raising questions about how
the daily decisions they make in the marketplace affect
others around the world. The scriptures and traditions
of our faith communities call for justice in all human
relationships - especially justice for the vulnerable
and impoverished. The linkages of poverty and trade
begin here.
How
does our faith connect with the injustices of the
world?
As consumers, we rarely consider the effect of our
purchasing decisions on the livelihood of small farmers,
the rights of women and children, wages or working
conditions, or the sustainability of the environment.
People of faith are increasingly raising questions
about how the daily decisions they make in the marketplace
affect others around the world. The scriptures and
traditions of our faith communities call for justice
in all human relationships - especially justice for
the vulnerable and impoverished. The linkages of poverty
and trade begin here.
How
does our faith connect with the injustices of the
world?
The starting point for the Judeo-Christian tradition
is an understanding of who God is and what God desires
for all of creation. The Hebrew scriptures teach that
God is the one who rescued us from oppression when
we were slaves in Egypt (Deuteronomy 4:6) and the
one who executes justice for the oppressed, who gives
food to the hungry (Psalm 14:6-7). Jesus used words
from these same scriptures to describe his mission,
to bring good news to the poor release to the captives
and recovery of sight to the blind, to let the oppressed
go free (Luke 4:18-19).
These
scriptures also teach that all of humankind is created
in the image of God, and we are called to care for
God’s creation. Poverty and injustice are understood
as problems of the whole human community, not only
of those individuals who are poor and vulnerable.
Poverty and the suffering that accompanies it are
indicators of greed and unjust practices in the community.
The wicked draw the sword and bend their bows to bring
down the poor and needy (Psalm 37:14). This greed
becomes institutionalized by those who write oppressive
statutes to turn aside the needy from justice"
(Isaiah 10:1-2).
What
are the people of God supposed to do about these injustices?
How
are we to care for God’s creation? For those Israelites
who lost their land and fell into indebtedness and
for some, slavery, the solution was not simply individualized
charity but involved changing the laws and institutions
of the human community. The Law of Moses called for
debts to be canceled and slaves to be freed every
seven years (Deuteronomy 15). Every 50th year the
Israelites were to carry out an equitable redistribution
of land (Leviticus 25). Reapers were to leave sufficient
produce in the fields for the poor (Deuteronomy 24.21).
How
does trade affect people in poverty?
Because we know that our faith tradition
calls for righting wrongs and restoring people and
communities to right relationships we must ask what
is effective and what is wrong and unjust about our
global system of trade.
Richer
and more powerful nations involved in trade are currently
much better placed to deal with the negative effects
that come from rapid change in a global trading system.
Unfortunately, the unregulated opening up of international
trade, while benefiting some, has had harmful consequences
for millions of people in poverty and the environment.
Working
conditions |
Millions
of people in developing countries are employed
in factories owned or subcontracted by transnational
companies making goods such as athletic shoes,
computer chips or t-shirts for export. When wages
are low, working contracts temporary, unions forbidden
and factory conditions dangerous, then employees
are simply exploited as cheap labor. |
Inadequate
protection for health |
When
imports are liberalized without effective health
and safety regulations, consumers can be vulnerable
to unsafe goods.
|
Unemployment
caused by chasing cheap labor |
Local
production can be undermined when governments
open up markets to foreign companies. This may
benefit consumers but destroy local jobs. Global
Trade Watch estimates that over 410,000 jobs have
been lost in the U.S. as a result of the North
America Free Trade Agreement. Other studies indicate
that urban workers and farmers in the global South
have experienced massive job loss as a result
of trade liberalization. |
Competition
from subsidized commodities |
In many developing countries the prices of many
primary products (cotton, rice, corn, beef) have
fallen because rich countries are subsidizing
farmers in their countries. This practice leads
to surpluses, which are then ‘dumped’ by rich
countries on the markets of vulnerable economies,
resulting in a bleak struggle for survival for
many poor farmers. |
Increased
dependence on imports |
Trade
can make agricultural inputs cheaper and increase
the range of goods on sale. But it can also make
people more dependent on imports for essentials
like food. People in poverty are especially vulnerable.
External changes over which they have no control
can raise the price of essentials beyond their
reach, while the alternative of self-sufficiency
has disappeared. |
Pressure
on natural resources |
Production
for export (commercial farming, mining or tourism)
can result in resources being taken away from
domestic producers. In Kenya, for example, the
flower farming industry provides employment for
around 50,000 people, but other farmers around
the shores of Lake Naivasha now struggle to obtain
water for their food crops. |
Reduction
in government income |
Increases
in trade can mean increases in government revenues,
but reductions in trade taxes under liberalization
can deprive developing countries of a major source
of revenue to tackle poverty. On average, one
third of developing countries’ tax revenues come
from trade taxes. |
Particular
effects on women |
Women
subsistence farmers have been adversely affected
by the sale of land to large companies, leading
to reduced food security and a consequent adverse
effect on women’s health, and the health of their
children. |
What
do developing countries risk by dependence on trade?
Developing countries are generally
more dependent on trade income than rich countries.
This carries huge risks. The larger share of trade
in developing countries’ gross domestic product means
that these countries are far more vulnerable to change
in demand for traded goods. Most of these countries
export raw materials, rather than the more lucrative
finished goods. In fact, additional import duties
in rich countries on finished goods are a powerful
disincentive for countries with vulnerable economies
to develop value-added production facilities.
Very
few countries in the global South have trading companies
or governments with sufficient negotiating strength
to influence prices. This compares with numerous transnational
companies, mostly based in rich and powerful countries
in the global North, which are able to control the
production, marketing and distribution of many of
the world’s most important commodities.
Economic
systems embrace more than trade, and economic justice
involves more than fair trade practices. But trade
rules and practices call for examination partly because
the exchange of goods is fundamental to human activity,
partly because the trade is being presented to impoverished
countries as the solution to their poverty, and partly
because trade issues have been neglected by people
of faith.
Trade could
be a part of the solution, if it were truly
just and placed in the context of social concerns
and needs. These are the two most fundamental
aspects of trade that challenge the community
of faith. The U.S. Interfaith Trade Justice
Campaign seeks to speak out, judge righteously,
and defend the rights of the poor and needy
(Proverbs 31:9) in its critique of the current
global economic system. At the same time the
Campaign proclaims a positive vision of a just
global economy where justice can roll down like
waters (Amos 5:24) in the world’s market places. |
* Adapted from materials by Christian
Aid (www.christianaid.org.uk)
and the Washington Office on Africa (www.woaafrica.org)
|
