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Coffee: Global Trade and Poverty Creation

Explore the intricate relationship between coffee, global trade, and poverty, tracing back to the Atlantic slave trade era and its implications on modern-day African economies like Ethiopia. Delve into the economic dynamics, historical contexts, and societal impacts of the coffee trade. Unveil why some regions rich in coffee production struggle with poverty despite global demand.

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Coffee: Global Trade and Poverty Creation

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  1. Coffee: Global Trade and Poverty Creation Do you drink coffee? How much do you spend on coffee a day?

  2. Global Trade stimulated by “Drug Foods” • Drug foods: little nutritious value, quick energy • Atlantic slave trade and sugar cane production • Tea from India and China • Coffee and chocolate • 18th century Europe: these became everyday fare as working-class lost access to land (and therefore able to produce their own food) • Marshall Sahlins: “Certainly it involves some peculiar Western ideas of the person as an imperfect creature of need and desire, whose whole earthly existence can be reduced to the pursuit of bodily pleasure and the avoidance of pain” (1988, 43).

  3. Who imports coffee:

  4. Who Grows Coffee: r = robusta, a = arabica, m = both

  5. Why aren’t Africans rich from our importing coffee?

  6. Ethiopia • Never colonized, but under Italian occupation during WW II • Slightly less than twice the size of Texas • Terrain is high plateau with central mountain range divided by the Great Rift Valley • 82 million people • 60% Christian, 33% Muslim • Military governments in 1970s and 1980s, but currently a democratically elected government • Exports: coffee, khat, gold, leather, animals, oilseeds • Currency: birr (8.96 birr = $1) • Debt: 44.5% of GDP (2007)

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