...Fair Trade- Benefits and criticisms Important to note that the fair trade economy is diverse ranging from agricultural products to handicrafts from all over the world. Benefits and costs vary by product, historical context of market, geography, etc. It is also important to note that fair trade occupies only a small sliver of the global trade. Some Benefits of Fair Trade: At its core, fairtrade guarantees a decent price for producers by requiring traders to pay a premium, which is passed on to the consumer. This premium insulates the poorest of farmers from fluctuations in the market, disasters, and other extreme events Small-scale Farmers and Workers: The Fairtrade system benefits approximately 1 million workers and farmers in 60 developing countries in Africa, Asia and Latin America. Including their dependents, five million people are affected. Fairtrade certification allows them to achieve economic independence and empowerment while improving their standards of living. Beyond being paid a fair price for their produce, Fairtrade Premiums enable producers to better their communities by providing: • Improved access to low or no-interest loans • Technical assistance for building infrastructure to improve production • Communications systems, and collectively-owned transport and processing equipment • Better health care and education • Technical training and skill diversification for cooperative members and their families A recent...
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...Sustainable Coffee Certifications Enough to Secure Farmer Livelihoods? The Millenium Development Goals and Nicaragua’s Fair Trade Cooperatives ´ ´ CHRISTOPHER M. BACONÃ , V. ERNESTO MENDEZÃÃ , MARIA ´ EUGENIA FLORES GOMEZÃÃÃ , DOUGLAS STUARTÃÃÃÃ , & SANDRO ´ ´ RAUL DIAZ FLORESÃÃÃÃÃ Ã University of California, Santa Cruz, USA University of Vermont, USA ÃÃÃ ´ Asociacion de Mujeres Contra La Violencia, Oyanka, Jalapa, Nicaragua ÃÃÃÃ Universidad Nacional Autonoma de Nicaragua, Nicaragua ÃÃÃÃÃ ´ ´ CII-ASDENIC, Edificio Casa Estelı, Estelı, Nicaragua ÃÃ ABSTRACT In December 2001, green coffee commodity prices hit a 30-year low. This deepened the livelihood crisis for millions of coffee farmers and rural communities. The specialty coffee industry responded by scaling up several sustainable coffee certification programs, including Fair Trade. This study uses household- and community-level research conducted in Nicaragua from 2000 to 2006 to assess the response to the post-1999 coffee crisis. A participatory action research team surveyed 177 households selling into conventional and Fair Trade markets in 2006. In an effort to dialogue with specialty coffee industry and mainstream development agencies, results are framed within the context of the United Nations Millennium Development Goals. Findings suggest that households connected to Fair Trade cooperatives experienced several positive impacts in education, infrastructure investment, and monetary savings. ...
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...Why Fair Trade? Mar. 21, 2012 Robert Skidelsky, Professor Emeritus of Political Economy at Warwick University and a fellow of the British Academy in history and economics, is a member of the British House of Lords. The author of a three-volume biography of John Maynard Keynes, he began his political career in the Labour party, became the Conservative Party’s spokesman for Treasury affairs in the House of Lords, and was eventually forced out of the Conservative Party for his opposition to NATO’s intervention in Kosovo in 1999. LONDON – Historically, the term “fair trade” has meant many things. The Fair Trade League was founded in Britain in 1881 to restrict imports from foreign countries. In the United States, businesses and labor unions use “fair trade” laws to construct what economist Joseph Stiglitz calls “barbed-wire barriers to imports.” These so called “anti-dumping” laws allow a company that suspects a foreign rival of selling a product below cost to request that the government impose special tariffs to protect it from “unfair” competition. Such dark protectionist thoughts are far from the minds of the benevolent organizers of the United Kingdom’s annual “Fairtrade Fortnight,” during which I just bought two bars of fair-trade chocolate and a jar of fair-trade chunky peanut butter. Their worthy aim is to raise the price paid to developing-country farmers for their produce by excluding the inflated profits of the middlemen on whom they depend for getting...
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...The principles of Fair Trade have been around much longer than most would anticipate. In 1827 in Philadelphia, Pennsylvania, slave-derived goods were boycotted. Thomas M’Clintock, a member of the Religious Society of Friends (Quakers) founded the “Free Produce Society”. Other movements such as the Free produce movement fought against slavery by emphasizing the honest labor of free men and women (Newman, 2008). The American Free Produce Association began in 1838. This was a group of citizens from many different states who promoted their cause by seeking out non-slave alternatives. They formed distribution channels and published information including their own journal, “Non-Slaveholder”. The movement was unsuccessful because the cost of non-slave goods was higher than others they competed with. Most of these groups disbanded in the late 1840’s and mid 1850’s. Europe is given some credit for beginning the Fair Trade movement. Due to young, college radicals and a push to prove their stance of Neo-Colonialism, they began attacking the corporate world or global free market. Out of this came the ideals of fair trade. Though this was during the 1960’s, they pushed it into the forefront of Global economics. The mother of Fair Trade is a different story that began in 1946. Edna Ruth Byler was in Puerto Rico visiting a sewing class. She was a volunteer for the Mennonite Central Committee (MCC). Edna went to places of extreme poverty and that day she was taken aback by the beautiful lace...
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...How fair is fair trade chocolate? Is chocolate leaving a bitter taste in your mouth? But now fair trade has made its way around and is a sweet solution to poverty. Fairtrade is an organization that offers the poor better trading conditions allowing them to earn the money that they should earn. Fair trade has lived up to their values by; reducing poverty, supporting better work conditions and protecting human rights in addition. The chocolate industry has a very bittersweet story behind it which includes child slavery and human trafficking. Human trafficking is a hardship that many developing countries are suffering and the main cause of trafficking is poverty. Those who are in the state of being severely poor are willing to give up anything even for the smallest thing like water for example. Fairtrade has helped to reduce poverty by supplying Kuapa Kokoo (A co-operative based in Ghana that provides only ‘Child-labour’ free cocoa beans) with necessities that help to support over 45,000 individual cocoa farmers. Things such as water, food and proper housing are slowly in construction ever since farmers have been selling directly to fair trade therefore a decrease in poverty has taken place. A male farmer who goes by the name Issac Frimpong has said that “Fair trade has helped me get money to look after myself and my children, to buy food and to look after myself”. Because...
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...The following essay addresses the issue of fair trade and basic fair trade business strategies of 50 sampled companies which operate around the world. The main emphasis is to assess which fair trade strategies and actions can be found in company reports and to identify best practice approaches. Based on these findings, I will be dealing with the question if the strategies can be worth adapting by German retailers. "Never before have had so many people so much in common, but never before have the things that divide them been so obvious.” Due to the fact that profit maximization and long-term maintenance of a business company are still the main business objectives global trade, free markets and globalization are the talks of today. At the same time organizations, institutions and governments share a vision of people of different nationalities and cultures which are able to trade resources across boundaries. However, it is not easy to maintain that when globalization does not favor those who want to trade fair-minded and reasonable. Besides there is a need for regulations when nation´s own global trading policies together with international corporations´ desire to increase their profits result in manipulated international trade pacts and agreements. Nevertheless fair trade is an effective way of development cooperation and for that reason millions of famers around the world symbolizes this way of participation in global trade relations, kids in school, healthy environment...
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...world trade growing substantially, we are all uniquely interconnected. International trade, and policies surrounding it are a key discussion point for politicians and citizens of nations worldwide, with poverty and development often mentioned when discussing these subjects. As the World Bank puts it, “Trade is a key means to fight poverty and achieve the Millennium Development Goals. It allows countries to import ideas and technologies, realize comparative advantage and economy of scale, and foster competition and innovation to increase productivity and achieve higher sustainable employment and economic growth.” (World Bank, 2013) Many economists have attributed much of the global economic growth down to free trade agreements, with the relaxing of tariffs, duties and quotas seen worldwide. Despite the widespread adoption of free trade agreements, fair trade is still relatively minimal. Some proponents of fair trade have compared it to the Code of Hammurabi, the earliest known legal code which claims the law is to ‘promote the welfare of the people and to cause justice to prevail in the land, to destroy the wicked and the evil that the strong might not oppress the weak’ with the opinion that fair trade can be used to prevent incredibly rich people and organisations from using trading relationships in the oppression of the vulnerable and weak and impoverished which is what occurs in free trade. (Northcott, 2006) Influenced by theorists such as Foucault and Gramsci, free trade is seen...
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...Is free trade also fair trade? All over college campuses around the world you can be sure to find cocoa, coffee and certain other products that are labeled “free trade,” but is fair trade really free trade? I started thinking more about it when a friend of mine coincidentally asked me the same question. After explaining what fair trade was she simply replied ‘does that really help the world, is that free trade?’ Although I answered here question with an emphatic ‘of course!.’ later on that evening I couldn’t help wondering if this was not one of the many ironies of economics and foreign policy to help developing countries that actually goes against common sense and free market systems. Coming from a developing country, I felt a tinge of regret for even thinking like this. Of course I want the best for developing countries. In countries like Ghana it is not hard to see the benefits of fair trade, the profits of farmers are increasing, more children especially girls are going to school, the premium from the fair trade organization is going into building social amenities like pure drinking water, more women are becoming empowered and are learning to take care of their own finances. But is this sustainable? Should the developing nations of Africa continue to depend on organizations such as this indefinitely? The answer to all these unfortunately is no. Governments of wealthy nations are continually pumping money into the fair trade. NGO’s fight indignantly for the rights of poor...
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...GEO 3106 Producing Africa: Take – Home Exam 1) The ‘real Africa’ is presumed to be filthy and miserable (Wainaina, 2005). Discuss. Representations of Africa in a global context have been largely negative, often presumed to be one country the continent is stigmatised as backwards, disease ridden, violent and in need of Western assistance. Although some positive imagery does emerge from Africa including that associated with Comic Relief, corporate campaigns such as Guinness’s stylish philosophy and in music videos like ‘Am I wrong’ by Nico and Vinz, Africa is subject to the use and re-use of negative imagery resulting in prominent stereotypes shaping our geographical imaginations of the continent. This is a similar concept to that of orientalism explored by Edward Said (1987). This essay will argue that presumptions of the ‘real Africa’ are largely negative, discussing how ‘Africanism’ and stereotypes of the continent are heavily influenced by colonial representations of people and place arguing that these assumptions are highly compatible with Western domination and power rooted in imperial attitudes. Jan Pieterse (1992:75) recognises that Africa has been depicted as the ‘Dark Continent’ plagued by stereotypes ‘which colonialism would build on and elaborate’. Imaginaries of childlike, savage, inhumane distant others who are dependent upon Western help dominate the way in which Africa is perceived. Campbell and Power (2010) suggest that a dominant scopic regime shapes...
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...Starbucks and (Un)Fair Trade Posted on November 15, 2013 by ADRI Leave a comment Read it? Rate it! Introduction It is a cold, winter day in the middle of December, and you are looking for a warm, comfortable place to go and get some work done. You decide to head to the local Starbucks on the corner, where you order a tall Peppermint Mocha—with whipped cream and chocolate syrup, of course. You then make your way to a cozy chair in the corner, where you set up your laptop and books. The atmosphere is perfect. The store design is perfect. The employees are perfect. And the coffee is…well, that is up for debate. As consumers, many of us know Starbucks as being one of the most popular brands in the coffee industry. Many people also know that Starbucks offers Fair Trade certified coffee, which the company often uses in its marketing campaigns to demonstrate how ethically responsible it is. Some consumers are not aware, however, that Fair Trade certified coffee is not as humane and virtuous as it seems. In fact, it is not really fair in any sense of the term. From a deontological ethical standpoint, Starbucks does not live up to ethical ideals in its promotion and sales of Fair Trade certified coffee. History of Fair Trade Certified Coffee The trend toward Fair Trade certified coffee stems from the Contra Movement, which occurred in Nicaragua during the 1980s. The Contra Movement resulted from the Nicaraguan government’s unfair treatment of coffee farmers. The...
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...Secondary Findings on Fair Trade | Title | Findings | | Nation-Wide Survey Says 17.6% of Japanese Know about 'Fair Trade'. | Only 17.6% of respondents know about Fair Trade. | | Fair Trade Products More Popular at Mainstream Stores | More commonly known and used products are café, cocoa, tea and chocolate. | | Fair Trade Consumption in France | Fair Trade coffee sales increased 33%. Which means awareness is raised globally. | | World Fair Trade Day 2011 Declaration | 14 May 2011 is Fair Trade day which aims to promote awareness. With advanced technology, the internet is a platform used to advertise and allow more users to know more about it. E.g. Website has a calendar of all Fair Trade related activities listed. | | Mainstreaming Fair Trade: the Role of Consumers | Consumers purchase Fair Trade products as they contribute to a fairer price for producer, so they are willing to spend more.2004 MORI survey revealed that women know more about Fair Trade product (42%) compared than men 35%However, men who know about it are more likely to purchase. | | The Buzz on Fair-Trade Coffee | 63% of Canadians drink coffee on a daily basis.Average consumption: 2.6 cups. | | Coffee Facts and Statistics | US coffee drinkers consume 3 cups on average. | | Coffee Culture in Asia | Almost one third of Chinese in Asia consume coffee. | | Five Fantastic Reasons to Drink CoffeeEight reasons to drink coffee | Consumers drink coffee as it keeps the mind alert, protects...
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...How Fair Trade positively affects: Economy | Environment | Social Equity | It creates jobs that allow workers to gain a living wage, not just subsistence. Less money goes to a middle person; thus workers improve their lives and those of their families. When people earn a living, they enter the ranks of those who are able to contribute to society through payment of taxes. | Organic products protect the natural environment as well as workers. (For example, Fair Trade food products such as coffee, cocoa, and bananas are often organic.) 100 Fair Trade farms rely mainly on biological or organic fertilizers and natural pest control. | When a social premium is paid to communities through Fair Trade, more funds come through the community to meet basic needs including water, sewage treatment, and schools. | Money can stay in the community through purchases of cement floors, stoves, shower, etc. | With organic products and the use of organic fertilizers and natural pest control, people are safer because they are not exposed to toxic pesticides. Simultaneously, the land, water, and air are protected. | Fair Trade recognizes for labor unions, avoidance of child labor, safe and clean working conditions, and fair wages | Fair Trade farmers are able to deal directly with the market buyers and demand a living wage. With portions of their revenue being continually reinvested. | Fair Trade farms plant cocoa or coffee with shade and fruit trees. This promotes biodiversity, encouraging...
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...Supply Chain Management and Fair Trade Executive Summary Resources are scarce and overstretched as a result of the fiercely competitive global environment which is as a result of globalisation, population increment and development of new technologies. On the basis of food food supply chain’s dependency on these scarce resources, sustainability of food has to be adopted through various approaches – the conventional approach (freetraide food supply chain) and the alternative approach (fairtrade food supply chain). This report focuses on sustainability, challenges of sustainability, key reasons for sustainability, food supply chain sustainability theme as well as a critical examination, analysis and appraisal of the fairtrade food food supply chain as advocated by Fairtrade Foundation and Fairtrade International and the normal freetrade food food supply chain through a comparative analysis which is based on consultation of materials from Fairtrade Foundation, Fairtrade International as well as other secondary sources (such as textbooks, articles, journals and websites). The report concludes that freetrade is a better option to manage the partnership between producers and consumers within a food food supply chain. However, fairtrade could still flourish if its techniques and principles are exposed to a continuous external and internal scrutiny against the continuous movement of the forces of demand and supply which always shape the dynamic nature of the competitive market...
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...2002 HOW FAIR IS FAIR TRADE? ** BY ROBBERT MASELAND AND ALBERT DE VAAL* Summary This paper investigates to what extent fair trade programmes, are indeed ‘fair.’ This is accomplished by comparing fair trade with free trade and protectionist trade regimes on their compliance of the criteria set by the fair trade movement itself. This comparison is made using comparative cost based models and economies of scale models. It is found that whether or not fair trade is superior to free trade or protectionism is highly dependent on a number of characteristics of the products to which fair trade is applied as well as on the context within which international trade takes place. 1 INTRODUCTION A long-standing debate in development economics has been the one between advocates of free trade and proponents of protectionism in developing countries. While the former argued that free trade would offer large opportunities for poor countries to improve their situation, the latter considered trade to be harmful to poorer countries and typically preferred a combination of protectionism and development aid. This opposition tended to dominate the discussion about the role of international trade in the Third World. Bhagwati 1993 , Krueger 1990 However, in recent years, a third position has come up. This position maintains that international trade can be beneficial to developing countries as long as it is performed in a just manner. The idea behind this is that, in conducting trade, we have a...
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...Globalization isn’t a new discover worldwide it has been going on for many years between many different counties. Yet, the United States is pretty new to the concepts and rules of free trade. Just like many new ideas and regulations that affect our everyday lives people across the world have a different view or understanding of the term globalization. Depending on others owe ethics, morals and ways of life create their own personal agreement or disagreement with global trade. Globalization has basically made the world a smaller place and also made ways for free trade and business to effectively communication between various parts of the globe. It has potential to make this world a better place to live in. It is changing major problems like unemployment and extreme poverty. Developing countries benefit the most and a lot from globalization as there is a sound flow of money and a decrease in the currency difference between every country with in the world. Free trade creates a mass competition base between many companies worldwide producing the same products, which give everyone worldwide many different options on what they would like to spend their own hard earned dollar on. With all those great positives for globalizing there are also many negatives about it. Globalization is causing citizens in many parts of the world to lose their jobs as work is being outsourced to other countries. The cost of labor in many other countries is extremely low as compared to a different country...
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