Rwandan Coffee, Commerce, and Cooperation

by Don Boudreaux on November 20, 2007

in Cooperation, Food and Drink, Trade

Karol and I — actually, it’s mostly Karol (who spends lots of time these days in Africa) — write here about the civilizing effects of commerce.

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  • oh yes...civilized is a repulsive word - especially in the context of describing positive change in developing nations. I'm sure no harm was intended.

  • William Barratt

    Some of my family members visited a coffee processing facility in Rwanda. The coffee industry there is unquestionably a focal point for economic growth and social healing. It's great to know the history behind it, so thanks to Karol & Don for that article!

  • ben

    You're going to get in trouble for saying "civilizing".


    Only with all the right people ;-)

  • ben

    Great article, actually quite thrilling to read a story about Africa with such good news.


    It has been a longstanding mystery for me why governments persist with heavy regulation that stifles an economy, when they can get out of the way, get a more powerful economy exchange and much more clout in the medium and long term. Is it simply that no dictator wants to go through the 10-20 (?) years of transition in which his tax revenues may fall, or that he may not survive the transition?

  • SaulOhio

    Bill: I saw nothing in the article about educating people or equiping them with anything. It was deregulation, getting the government out of the way, and letting people do what they do best.


    Did you read the same article I read? They had not been working for large companies in the past, but for the government. I predict that as the economy there grows, coffee farms will get consolidated and large companies will emerge, as will export companies, and people will prosper even more. It will happen because of economies of scale and division of labor confer advantages without really being "exploitive".

  • Bill

    Free trade organizations probably did help, but I meant to say "fair trade" organizations. I was suspicous when I first saw it advertised , I thought it was some liberal way to charge more for coffee. However, I looked into it, and sometimes it is basically educating people and equipping them so they can cut out the middle man.

  • Bill

    That is wonderful news. I believe free trade organizations really helped out in this area, so that the farmers had an alternative to working at subsidence wages for large companies.

  • holymoly:


    you're so judgmental. :)

  • holymoly

    I see Robert S. Porter's point (if "civilizing" is some sort of racist dog-whistle), but I have to say that genocide is pretty uncivilized.

  • You're going to get in trouble for saying "civilizing".

  • holymoly

    I'm going to say something I never thought I would utter here...


    Really good article, Don.


    I'm sure there's a lot simmering below the surface in Rwanda that could be reignited. But a thriving, farmer-driven coffee trade is a wonderful thing for this country.

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