Protesters Who Leave Their Marx Behind

Thousands of demonstrators attended last summer’s G-8 summit in Genoa, and police in Canada are bracing for a repeat performance when G-8 leaders meet in Alberta this week. But while Genoa’s protesters were largely antiglobalization, groups that embrace global trade as a weapon to fight poverty have been seizing the initiative. So-called fair-trade proponents have been around for more than 40 years, says the Trade Justice Movement’s Chris Holt, but antiglobalization protests helped “put the issues on the map.” Last week Holt’s group, formed in 2001 to coordinate various NGOs, staged a rally that brought 10,000 people to Britain’s Parliament in anticipation of the G-8. And you could be forgiven for thinking they’re more akin to Adam Smith than Karl Marx. They want wealthy nations to drop subsidies and eliminate trade barriers. And, says Mariano Iossa of Brussels’ European Fair Trade Association, they believe in “opening up marketing opportunities rather than just giving aid.” Such ideas agree with those of groups like the WTO, and with 43,000 European supermarkets now carrying fair-trade goods, they’re also making a market impact. But fair traders still differ from conservative economists. “Free trade is not always our goal,” says Iossa, “but we think if double standards are to be developed then they should be in favor of developing countries.” That might not be exactly what all G-8 leaders want to hear.

LABOR REFORM
Europe’s Strikes
European leaders know all about labor pains, as unions halt even their most tentative reforms. Italian Prime Minister Silvio Berlusconi is likely to drop his plan to make it easier to fire workers after it provoked a general strike in April. Last week, Spanish Prime Minister José Aznar’s proposal to cut unemployment benefits was greeted by a strike that closed industry and sent thousands onto the streets. And flights across France and Europe were canceled as airtraffic controllers struck to protest the E.U. “single-sky” initiative that would unify the Continent’s air-traffic control. But the strikers aren’t just the usual suspects. Following the success of an IG Metall strike in May, German construction workers calling for higher wages launched their .rst major strike in 50 years. And even the venerable British Museum got into the act last week when it closed because of a strike for the first time in its 250-year history. Economists hoping Europe was heading for a wave of reform are wringing their hands. Maybe they should just strike instead.

THE BOURSE
A Sweet Deal
Swiss food giant Nestlé will take control of U.S. ice-cream maker Dryer’s, creating a company worth about $5 billion. Nestlé will now have some 18% of the world’s ice-cream market.

The Post Gets Stamped
The European Commission ordered German postal operator Deutsche Post to repay ?572 million in government aid it used to subsidize loss-making businesses.

Norman Conquest
State-owned Electricité de France is buying all the shares of Britain’s Seeboard from American Electric for ?1.05 billion and taking on the company’s ?1.12 billion debt.

Gentlemanly Offer
Vodafone is confident enough about CEO Christopher Gent to brave unrest over executive pay. It awarded him a $2.3 million bonus despite the company’s $20 billion loss.

INDICATORS
Symbolic Dispute
Interpayment Services, a division of Travelex, is suing the European Commission for ?39 million on grounds that the euro symbol infringes its trademark. But Travelex presumably wouldn’t mind being paid in the currency if it wins the case.

Peso Woes
Blaming turmoil in Brazil and Argentina, Uruguay said it would float the peso, which stands at about 18 to the dollar. The Argentine currency is down 70% since it was released from its dollar peg in February, and Uruguay’s move raises fears that the effects of Argentina’s crisis may be spreading.

Hey, Big Spender
Flying on Southwest Airlines just got more expensive for 51 million Americans, as the carrier announced it will require obese passengers on fully booked flights to purchase a second seat. No word yet on whether thin people will get half fare.

Down On The Farm
E.U. farm commissioner Franz Fischler proposed capping subsidies at ?300,000 per farm and linking them to environmental and quality criteria rather than production levels. The proposal will face stiff resistance.

BOTTOM LINES
Where’s the upside in opening your mouth?”
TED TURNER, vice chairman of AOL Time Warner, in an interview that equated Israeli and Palestinian violence

“They’re doing a great job of appealing to Greeks and Latins.”
STEVE MANNING, managing director of A Hundred Monkeys branding consultancy, on meaningless corporate names like Altria and Aviva

Doing even a standard calculation took me forever.”
ROBERT HUNT, Cambridge University mathematician, on complicated credit card interest formulas