I was hoping not to post in this thread, since I don't want to waltz in and pretend to be an expert. But for my work I am involved in issues related to this, so I hope my perspective is helpful.
In general, I think we need to approach this issue with more humility. We're not beating children by buying normal products and we're definitely not saving the world with free trade. Sure, all of us are involved in negative systems, but that's completely unavoidable and I don't think it's helpful to talk about this in terms of blame. This thread is an example of that: people who were trying to do what they could became alienated when their choices were condemned.
ich1990 wrote:On a related note, does anyone have any links to statistics on this stuff? How much does it actually help fight injustice to pursue Fair Trade purchases? I can't find much of anything through a simple google search.
I do not know of any such statistics and I would be suspicious of any I found. In general, fair trade affects this kind of injustice only very indirectly. I think the connections to sweatshops are made primarily because it is an easier emotional appeal.
Fair trade's actual benefits are more basic. I'll use a real example. In many regions of Columbia, farmers are paid so little for their coffee beans that they cannot support themselves, and these prices are kept down due to company monopoly in the region. A fair trade company enters the region and offers to buy their coffee beans for a price closer to a living wage. Usually they can only afford to buy a limited number, but if that coffee sells, they can expand operations. Working conditions remain difficult and the region is still poor, but some farmers are getting a fairer deal and are better able to support themselves.
Buying fair trade coffee isn't going to change the world, but if you picked a reputable company, you are helping someone. There are a few examples where it helps improve overall systems. For example, close to half of all bananas sold in Switzerland are fair trade and larger companies have been forced to slightly increase prices to compete. The places where Switzerland gets its bananas have an increased standard of living now.
You may also be interested to know that some fair trade companies have microcredit as a part of their business model. For example, giving farmers loans so that they can improve production or gain alternative sources of income. Fair trade has become a bit of buzzword among people who care more about appearing socially conscious than helping anyone, but there are some companies with very reasonable practices.
Note that this was all about farming. That's because food is the area where fair trade has been shown to work best. In terms of products produced unethically like shoes, the connection is less clear and the effects become more complicated. At best, you're helping some company that treats people decently hire more workers and displacing injustice elsewhere.