There are things that make trade fair, and then there are things that only make trade fair-er.
Unfortunately, the sweatshop mentality has permeated nearly all production levels of consumer products for the United States. The Fair Trade movement is in reaction to these inhumane practices, fighting for the rights of the producer.
Many different organizations verify that your favorite products were produced with worker benefits in mind, but I have seen first hand where this system fails...
In Kenya, the garment/textile industry is booming. Major brands now produce your favorite blue jeans and designer wear in Kenya because of the AGOA extension and GSP import tariff leniency. Factories with thousands of people in mini-cubicle workstations work long hours and receive the national minimum wage ($1.50/day). Now, the designer clothing companies all have third party organizations that make money to "certify" in some way or another that the factory is not a "sweatshop". The absolute minimum conditions of humane employment are met, and why is that ok? Walking through these "certified" factories is enough to make you and I shed a few tears, believe me...
So that's why we have Fair Trade, right? But the question becomes, "How fair is your fair trade'" Again, there are many organizations that are making money to "certify" fair trade companies. This is the same story as the clothing factories in Kenya. Certification means only the most basic conditions are met. For example, a fair trade company buys a bracelet for $2 directly from a producer and then sells it in the US for $8. The producer might only have $0.75 profit in the deal, but the "fair trade company" makes $6 profit. If the point is to empower producers, why are the fair trade companies pulling in bigger profits than the artisans??? Indeed, purchasing directly from an artisan improves his/her profit margins, and I know very well the costs of running a fair trade import/export business, but $.75 compared to $6 is hardly "fair"! Less exploitative perhaps, at best.
Village Markets of Africa (www.villagemarketsofafrica) engages in profit sharing with our artisans. Fair wages are paid upfront directly to producing artisans, and 50% of profits are returned to the artisans in the form of job training, microcredit loans, and production upgrades through machines and tools. In the Village Markets of Africa business model, artisans take the same 50% of profits as our shareholders. In effect, the artisans make MORE than VMA makes because they make profit from the original sale of their products in addition to the 50% profit sharing...NOW THAT IS FAIR!
Please do not take fair trade certification as proof of fair trade practices. Do your research and support fair trade companies that are not just fair-er, but those that are actually Fair!
God Bless,
Jacob SchmlalzeUS Coordinator
Village Markets of Africa
www.villagemarketsofafrica.com
Good points Jacob, we see the same situation in Viet Nam where "Fair Trade" in effect leaves artisans with small profits and the trader reaping large returns. We also question if Fair Trade certification is proof of fair trade practices, in lots of examples it certainly isn't. Is worldofgood.com addressing these issue..... we don't think so.
I don't think it's up to worldofgood.com. It would be great if a totally transparent certification process existed for fair trade, but it does not. Worldofgood.com will provide an incredible opportunity for REAL fair trade to take place...that is responsibility enough. It's up to enthusiastic people like you to uncover and expose those abusing fair trade. Go after them directly, not after those providing a general platform for fair trade sales. We need to unite the fair trade movement, and worldofgood.com is providing with ebay magnitude. Please continue to fight the good fight against those seeking to exploit fair trade!
This is a news for me as an American consumer...I always thought fair market was fair to all. But I see that is not the case and I willing be doing something...if not spreading the word. Thanks for this post, Diane
I am in Nairobi frequently and have had the opportunity to do some of that first hand research. Many NGOs and non-prifits claiming to help the people use most of their funding to support the lifestyles of the foreign company employees. Fortunately, the word on the street is that Village MArkets of Africa is doing exactly what was said in this blog! This Village Markets of Africa has created quite a positive buzz among the artists and those "in the know"....you have my support. I'll be spreading the word to all of my contacts. Keep up the good work, its refreshing to know that there are some honest and responsible ways to be a good consumer out there!