WorldofGood.com, an eBay Community: HOW DO YOU VIEW "FAIR TRADE"

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HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ?

Posted By: Debbie Kreuser May 11, 2008 1:43 PM

I have been here at World of Good for almost two months and I think that it's an awesome attempt to expand the community of people around the world who are aware and actively supporting "fair trade" initiatives with those in the "majority world" that have restrictive access to world trade markets.

But I also have some concerns about the current "fair trade" movement and so I decided to start this discussion to more accurately gauge the range of opinions here of those who are supporters and/or durectly involved in the "fair trade" movement.

I am a long time social activist (you can learn more about my background in my profile) and remember when the "fair trade" movement really got going in the 1980's.

I have watched this movement grow and CHANGE over the following years and I have some mixed feeling about it.

Those feelings will be shared in upcoming posts in this discussion but, for now, I would like to know from YOU how you view the current "fair trade" movement.

Here are some ideas that I would like you to consider and comment on:

what are the goals of the current "fair trade" movement?

who ultimately is being empowered by current "fair trade" practices?

why are you in the "fair trade" movement?

how do you view "fair trade" - as business, charity or as social justice?

Tomorrow, I'll start posting my views. I hope to hear yours.

All the Best, debbie
www.mpwn-uganda.org

Indochine Natural 87 posts since
Feb 12, 2008

Reply 1. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 12, 2008 9:50 AM

This is an excellent set of questions!!!

From our position as a producer located in a developing country, here are our thoughts;

(1) The goals of the current "fair trade" movement are a mystery to us as we experience all sorts of west-centric barriers in become recognised by accreditation organisations and trading on worldofgood. Since when did the ability to trade via PayPal become an integral part of Fair Trade?

(2) Who ultimately is being empowered by current "fair trade" practices? Certainly not independent fair trade producers in developing countries, unless you are associated with an international INGO? Lets take Viet Nam where we are located, just one or two IFAT members in a population of 84 million. What have these members done in the area of capacity development to empower and facilitate small independent producers to become IFAT members in their right? Or are they more interested in maintaining a dependency to ensure the supply of cheap products?

(3) We are not "in" the Fair Trade loop as we cannot get accredited. However, we strongly adopt Fair Trade principles for two reasons, firstly it is good business sense, and secondly we care about our workers.

(4) Firstly we view "Fair Trade" as a business, because a sustsainable and profitable business is the only way we can improve the livelihood and living standards of our workers. Certainly not a charity, our workers are too proud to accept charity.

We also have concerns about the current "Fair Trade" movement ..... where is the voice of the producers/artisans?

Debbie Kreuser 18 posts since
Mar 30, 2008

Reply 2. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 12, 2008 8:56 PM

in response to: Indochine Natural

Thanks Indochine for your response to my question. I truly appreciate your ideas.

Personally, I have my own concerns about a lot of the people currently involved in the "Fair Trade" movement and I hope that more people will join this discussion to voice their ideas also.

It is only through the discussion of our differences that we can find "common ground".

I do think I see a lot of "west-centric" thinking and behavior in some "Fair Traders" which is not ultimately beneficial to the people and the cultures that they say that they want to help.

To answer my own question, "Fair Trade" needs to be about the business of social justice. Otherwise it truly is NOT fair trade.

Fair Traders must realize that once they step into the arena of the cultures of the people of the majority world that they need to see the entirety of these people's lives - and not just enough of their lives that is necessary to keep the "fair trade" business alive.

To begin, if people are not familiar with the concept of Fair Trade as social justice, the Oxfam website is an excellent place to start learning more about this idea.

You can access the general Oxfam website (www.oxfam.org) or Oxfam's website devoted to fair trade (www.maketradefair.org) and start learning more about Fair Trade as a social justice concept.

I hope that others will join this discussion.

All the Best, debbie (www.mpwn-uganda.org)

A Better Footprint 14 posts since
Dec 28, 2007

Reply 3. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 18, 2008 12:25 AM

in response to: Indochine Natural

Excellent and challenging responses, as always Indochine.

(1) How is having a PayPal account a "requirement" of Fair Trade? I know many Fair Trade producers, organizations, companies, etc. who will have nothing to do with PayPal. If you are equating selling on World of Good with being part of the Fair Trade movement, you're really limiting yourself on the scope of what it means to be Fair Trade or sell Fair Trade goods successfully. There are hundreds of other avenues for selling your Fair Trade goods.

(2) I would certainly argue that small producers are benefiting from Fair Trade. Please don't let a few "bad apples" define the entire Fair Trade movement. Perhaps your situation in Viet nam is a bitter one with a local IFAT member, but the women of Njau, Gambia with whom I work would beg to differ.

I would be happy to share with you actual statements from the women about how they have benefitted from our grassroots initiative. They make more than 12 times what they were making selling their purses on the local market before being introduced to Fair Trade, and make 25-40% of the retail price. One craftsman expressed how, after just 6 months time, he was able to fix a leaky roof that he had not been able to properly fix for over two years, because the prices we paid gave him extra money he never had before. These are artisans that I have known for over five years and will continue to trade with and work relationships with to help them reach the point of self-sufficiency. And, in the true spirit of Fair Trade, we don't make "exclusive" contracts with producers. Anyone can buy from the groups I buy from and I will give out that information. Global Crafts is another Fair Trade and IFAT member that follows the same principle, in the true spirit of Fair Trade.

(3) I think you are narrowing the "loop" to be too small, and considering IFAT membership your only formal link to the Fair Trade movement. If you know what you are doing is Fair Trade, but cannot afford IFAT membership, join another group, such as the Asia Fair Trade Forum or one of many, many "Fair Trade" groups. If that's still not possible, work toward getting a grant or finding a sponsor for the fees for an organization that makes you feel "in the loop" if that is so important for your group. Or, provide your full documentation to a organization that "is" in the loop (i.e. Fair Trade Federation member) and sell your products through them to gain Fair Trade recognition. I work with several groups that are in the same position as you - no funding to get "accreditation" or membership. Through our help, the groups are now recognized as Fair Trade groups and work towards expanding and growth.

Bottom line, if you know you practicing Fair Trade - keep doing it - and don't change your standards or spend too much time dwelling on being "out of the loop"! And tell people about what you do and WHY you do it. Establishing a formal link with the Fair Trade movement might be important for you, but choosing the right link is also important. Don't join an organization just because you think you have to, or for self-interested purposes only - join because you want to strengthen Fair Trade and contribute to the movement as much as you feel you might benefit.

(4) If you're wondering where the voices of the artisans are, let your artisans post something on this forum, then! It all starts with us! I am visiting some artisan groups I work with in Africa again in 9 days, and I'll be posting what they would like to say!!

Do you think that much of what is being said on this community marketplace is contradictory to what artisans or producers would like to say?

The truth is, because we work in FAIR TRADE, many many of the artisans don't have email, can speak english, etc, so how do you expect the artisans to be typing directly on this forum? Most of the women I work with don't have running water, electricity, or have ever been to school. For the time being, they rely on people to share their stories on blogs and discussions for them.

If it weren't for the many fair trade organizations, companies, and individuals like you, their voices would not be heard.

A Better Footprint 14 posts since
Dec 28, 2007

Reply 4. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 18, 2008 12:43 AM

1)what are the goals of the current "fair trade" movement?
To provide an alternative to the current crap that goes on in global trade - (sweatshops, low wages, child labor, lack of long term committments, buyer/seller agreements that favor only large corporations, the impossibility of finding anything hand made or not mass-produced). That being said, the alternatives (or goals) that Fair Trade should prvode are - healthy working conditions, living wages above $4 per day and profit sharing where possible, investments in education and adult labor only, long-term comittments, monitored buyer/seller agreements, and the continuation of a focus on handmade or small farmer coops and goods.

2) who ultimately is being empowered by current "fair trade" practices?
Every single person, from start to finish, should be empowered by "fair trade practices." That means first, and foremost, the producer community must benefit in a long-term, sustainable way. The consumer should also be empowered, knowing that they are making responsible choices and supporting handmade (and not fastest, biggest, cheapest). If the producer is not able to sell directly to the consumer, the wholesaler/distributor/retailer should also be empowered, knowing that they are a vital part in representing a small producer group that might otherwise not be able to market and sell their products, or might be easily taken advantage of by another business who will not pay fair wages or prices.

why are you in the "fair trade" movement?
Because I am the type of person who has looked at the tag on a shirt, and seen Made in insert country here, and wondered...

What if you could actually walk into a store, bring that shirt to the cashier, and the cashier could tell you the names of the women in that country or even show you pictures? Bringing the consumer closer to the maker will make a world of difference, not only in the amount of money that can be earned, but in restoring "trade" to what it is all about - relationships between human beings.

Sure, there are a lot of other reasons why we got into fair trade, but it boils down to that.

how do you view "fair trade" - as business, charity or as social justice?
Fair Trade definitely has to be about social justice and business. With regard to charity, it is clear that there is a link there already because many "fair trade" organizations are 501c3 organizations with charitable missions. Since we are organized as a business with a socially conscious mission, I can't speak for the goals of Fair Trade as they relate to charity. I can only say that since "trade" is in the name, there must be a commerce aspect and "fair" denotes a social justice aspect.

Indochine Natural 87 posts since
Feb 12, 2008

Reply 5. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 18, 2008 2:17 AM

in response to: A Better Footprint

Great debate, lets keep it going.

To respond to a couple of your points.

(1) Your comment "If you are equating selling on World of Good with being part of the Fair Trade movement, you're really limiting yourself on the scope of what it means to be Fair Trade or sell Fair Trade goods successfully.". We certainly realise that, and just this week have concluded a deal with a Fair Trade wholesaler who has travelled all the way from the USA to check us out in Viet Nam and agree to an arrangement to distribute in N. America. However, the point about PayPal is made within the context of this Worldofgood.com initiative..... they are the ones who are excluding small independent producers/artisans by linking in with PayPal. Now why would they do that?

(2) "Perhaps your situation in Viet nam is a bitter one with a local IFAT member, but the women of Njau, Gambia with whom I work would beg to differ". Yes, my original assumption, but have now been contacted by dozens of people (some IFAT members themselves) and they do not have a lot of good things to say about these organisations such as IFAT/FTF etc. The domination by 10thuosandvillages is irking some people, and making them VERY VERY angy.

(3) "join another group, such as the Asia Fair Trade Forum or one of many, many "Fair Trade" groups". We have approached AFTF, not much different from IFAT.

Can you provide any concrete examples of small independent (ie. no external support) producers/artisans that have become members of a "Fair Trade Group"?

(4) "If that's still not possible, work toward getting a grant or finding a sponsor for the fees for an organization that makes you feel "in the loop" if that is so important for your group. Or, provide your full documentation to a organization that "is" in the loop (i.e. Fair Trade Federation member) and sell your products through them to gain Fair Trade recognition."

Our Vietnamese women are dead against begging for funding. We have looked at selling to a local Fair Trade member, but they are not interested in our products as their product focus is very narrow. We are too independent for these other companies.

Our solution has been to approach wholesalers directly in the USA, and this has worked, we are now successful and do not need a Fair Trade link in Viet Nam.

(5) "Don't join an organization just because you think you have to, or for self-interested purposes only - join because you want to strengthen Fair Trade and contribute to the movement as much as you feel you might benefit."

EXACTLY!!!! We now feel as if we have a stronger voice by not being a member, and informing others of the approach we have taken We have formed a "Social Entrepreneurs Group" here and will work towards empowering others. So we will strengthen Fair Trade this way.

(6) "let your artisans post something on this forum, then! " Well, that is exactly what is happening..... none speak English, so we are condensing their deas and thought and putting them here.

Debbie Kreuser 18 posts since
Mar 30, 2008

Reply 6. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 18, 2008 8:56 AM

in response to: Indochine Natural

Thanks Better Footprint for picking up the challenge of answering some of Indochine's questions. I knew that if someone would try to respond to her questions, it would be you.

I wish you well on your trip to the Gambia and please come back and share your experiences with us.

I do hope that more people will enter this discussion because it isn't just what we do in life - it's also WHY we're doing it.

And I truly think that more people need to examine why they are "Fair Traders".

All the Best, debbie
www.mpwn-uganda.org

A Better Footprint 14 posts since
Dec 28, 2007

Reply 7. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 19, 2008 4:20 PM

in response to: Debbie Kreuser

The great thing about this Forum is about people being honest, even if they are not popular or even if they are critical.

Fair Trade wouldn't be gaining momentum and be as meaningful to the consumer without all of us, and that includes challenges like the one Indochine Natural has put out there. I think it's great that everyone is able to share freely!

There are many producer groups for whom there is no need to become a member of a Fair Trade group, because the "fair" part comes into play for the buyer or distributor, or when the trading actually begins.

Thanks everyone who is posting to this thread and I can't wait to see more when I return again from Africa.

Miranda
A Better Footprint

Debbie Kreuser 18 posts since
Mar 30, 2008

Reply 8. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 23, 2008 10:29 AM

in response to: A Better Footprint

As always, Miranda, you have an excellent viewpoint of what "Fair Trade" really means.

I have some thoughts about your comments but, as I am in a bit of a hurry, I'll have to post them this weekend when I'll have more time to develope them.

I did just want to post this item from the Make Trade Fair website to let others see how the whole concept of "Fair Trade" is simply NOT a business ploy but emanates out of a true social justice background.

All the Best, debbie
www.mpwn-uganda.org

"Before you've finished your breakfast this morning, you'll have relied on half the world"

Martin Luther King

An interesting thought. And a depressing one, when you realise that those people you've relied on for your coffee and muesli are almost certainly being exploited and oppressed by the unfair power balance in world trade.

But what can you do? Surely it's beyond your control? Wrong. You can buy Fair Trade products. And you can add your voice to the Big Noise.

Fair Trade is a growing, international movement which ensures that producers in poor countries get a fair deal. This means a fair price for their goods (one that covers the cost of production and guarantees a living income), long-term contracts which provide real security; and for many, support to gain the knowledge and skills that they need to develop their businesses and increase sales.

Fair Trade and the Make Trade Fair campaign

The Fair Trade movement has been one of the most powerful responses to the problems facing commodity producers. It gives consumers an opportunity to use their purchasing power to tilt the balance, however slightly, in favour of the poor. But Fair Trade alone can't address the crisis faced by the millions of small-scale farmers and producers whose livelihoods are threatened by low commodity prices and unfair competion from rich countries.

This can only be achieved by changing the unfair rules of world trade so that they work for small-scale producers as well as rich multinationals.

In the meantime, for hundreds of thousands of people, Fair Trade means the difference between a hand-to-mouth existence, and being able to plan for the future.

In the past decade, the Fair Trade movement has really taken off, as consumer awareness of - and indignation at - the treatment of producers in poor countries has increased. More retailers than ever are stocking Fair Trade goods, the number of products on offer continues to grow as demand increases, and more poor communities are feeling the benefits.

Debbie Kreuser 18 posts since
Mar 30, 2008

Reply 9. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? May 29, 2008 5:32 PM

in response to: Debbie Kreuser

For us as "fair traders", we are trying to make the world a better place on a micro-level. Our activities with communities in the "majority world" are normally focused on one, or several, communities and we attempt to make the standard of living in those communities more equitable than before.

But there is another level of fair trade and that's on the macro-level - our governmental trading policies with "majority world" producers & countries.

And that's where "fair trade" can get sticky.

To begin to understand the dimensions of fair trade on the macro-level with Africa, here is an excerpt from the website of one of the most determined organizations in the world to make trade fair with Africa, DATA.

I'll have more to say about this soon.

All the best, my friends.

LIVING POSITIVELY, debbie
www.mpwn-uganda.org

******************************************************************

Development assistance and debt relief are critical to jump starting Africa's development, but African countries want the opportunity to earn their own resources for fighting poverty and growing their economies. But instead of earning more money to invest in improving the lives of its people, Africa has been earning less and less. In 1980, Africa had a 6% share of world trade. By 2005, this had dropped to less than 2%. If Africa could regain just an additional 1% share of global trade, it would earn $70 billion more in exports each year - more than double what the region currently receives in development assistance.

Africa faces inherent trade problems. The lack of infrastructure, high concentration of land-locked nations and reliance on the export of primary commodities, such as minerals and agricultural products, present significant challenges to expanding trade on the continent.

African exports also face trade barriers, such as high tariffs and taxes, that make it difficult for their products to compete in important markets in the U.S., Europe, and Japan. Making matters worse, wealthy nations pay their richest farmers to overproduce, which artificially lowers prices. As a result, African farmers cannot compete and therefore do not earn enough to meet their basic needs.

In order to create more opportunities for Africa to trade, donors need to reduce or eliminate artificial trade barriers and provide assistance that helps Africa to trade - this means constructing roads and ports that bring African products into markets and helping African farmers and entrepreneurs find buyers for their products. African countries must also prioritize trade as part of a comprehensive strategy to fight poverty and take steps to encourage trading relationships among African countries.

http://www.data.org/issues/trade.html

Teresa @ Fairwind 1 posts since
Jun 6, 2008

Reply 10. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? Jun 6, 2008 9:29 AM

in response to: Indochine Natural

Well here is my contribution to the debate:

I run one of the leading fair trade gift retailers based in the UK. We have been trading in North London and through our website www.fairwindonline.com for over 6 years. We are a member of BAFTS and source our products from IFAT accredited producers, UK accredited wholesalers (BAFTS) and directly from producers in Asia and Africa. So we get to see fair trade operating in many ways.

We see fair trade as ethical business, first and foremost, not charity. We believe that everyone along the fair trade chain should make a reasonable profit, so they can invest in their businesses, their communities and families. And we mean everyone in the chain. From that, we believe that social justice will develop as education and wealth increases in communities in the southern world.

Where our suppliers have gained IFAT accreditation, they have been able to tap into a fantastic network that provides access to western markets, and feedback and support on product development. And the social, wealth and educational benefits for the communities in which these suppliers operate are very clear to see.

But we also come across a lot of suppliers, like Indochine Natural, who find it difficult to get access to these networks. It is surprisingly expensive amd time-consuming to get IFAT accreditation and is beyond many small producers. Hence we do not limit our purchasing to IFAT members only, and have set up import operations with small suppliers in countries such as Indonesia, Sri Lanka, Cambodia and Uganda. We ensure that fair trade and ethical principles are followed when we enter into these relationships and monitor them constantly ourselves.

So here is the conundrum; how to do you provide a means of accreditation that is cheap and accessible for the suppliers but robust enough to provide assurances to western consumers? This is relatively easy with agricultural products (hence the success of the Fairtrade Foundation), but with gifts and handicrafts it is very complex. Tracing the source of the many components used in some products is very difficult.

I am afraid I don't have an answer to this problem. Anyone in the UK can claim to be "fair trade": it is not a legally protected term. So some accreditation is needed. But it is a complex process in the gift market. At Fairwind we try to make the best of all options; using accredited and non-accredited suppliers and providing as much information as we can about those suppliers that aren't accredited. Every product on our website has full information about the source of the product and the producers who made them.

I really wish we had the resources to import more products directly from small suppliers, and over time I guess we will. We usually manage to take on a couple more new ones each year.

I look forward to hearing from others in this debate.

Teresa Owen

Fairwind

Debbie Kreuser 18 posts since
Mar 30, 2008

Reply 11. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? Jun 8, 2008 8:44 PM

in response to: Teresa @ Fairwind

Hey Teresa, it's so good to meet you and to know that you're out here doing what you can to run an ethical fair business. Thanks for your considered opinions because there's real merit in what you say.

I was especially intrigued by this part of your statement.

"Anyone in the UK can claim to be "fair trade": it is not a legally protected term. So some accreditation is needed."

That is exactly my concern. I don't want anyone out here to just put a "fair trade" sign on their business and reap the benefits of fair trade without really being a socially ethical business.

On the other side, I am concerned that in this current trend toward "fair trade" that the process doesn't inhibit the very people who most need to benefit from fairer trade - those who are on the economic bottom of their societies.

This is also the reason why I urge "fair traders" to make sure that they are keeping up to date with the larger fair trade issues that are happening around the world.

I'll have more to say in a few days. I hope that Better Footprint & Indochine come back into this thread.

Take very good care, my friends. Blessings always.

LIVING POSITIVELY, debbie
www.mpwn-uganda.org

Indochine Natural 87 posts since
Feb 12, 2008

Reply 12. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? Jun 9, 2008 9:11 PM

Teresa's comment "..... how to do you provide a means of accreditation that is cheap and accessible for the suppliers but robust enough to provide assurances to western consumers?" is certainly an issue.

We have had Fair Traders from the States jump on a plane and come out to visit us, and in a nice non-threatening way check us out. What is coming through loud and clear is that even those these companies are members of organizations such as IFAT etc., they are not 100% comfortable with their accreditation methods, too many small producers such as ourselves are locked out, and the product focus of many IFAT members in-country is too narrow.

The other question that has been raised by all of these visitors who have travelled quite extensively in Viet Nam is why in a country of 84 million with so many artisans is there only one IFAT member? Well, just think of that from the point of view from the Vietnamese IFAT member in-country, do you really think they would go out of their way to encourage competition and alternatives to the huge international market for Fair Trade goods?

OK, to provide some options to Teresa's question..... jumping on a plane may not be a viable option for many. We feel the solution is to seek out independent accreditors for Fair Trade who are independent of IFAT etc. and IFAT in-country companies. In Viet Nam there is no shortage of such people who would be willing to contribute and provide honest evaluations of companies claiming to be Fair Trade. These individuals work for NGO's, embassies, are consultants/employees of development agencies/banks (USAID, World Bank etc) who are knowledgeable of Fair Trade and could be called upon. Why not establish a database of such individuals that companies could contact and ask for assessments of individual companies against a pre-agreed checklist?

Debbie Kreuser 18 posts since
Mar 30, 2008

Reply 13. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? Jun 12, 2008 8:03 PM

in response to: Indochine Natural

Hey Indochine, I hope that we can pull some more people into this discussion so that we can get a broad range of ideas on this topic.

I truly appreciate your input into this thread. Let's hear from others - both "fair traders" and buyers in this forum about this topic!

I'll have some more thoughts on this topic this weekend.

All the Best, debbie
www.mpwn-uganda.org

Indochine Natural 87 posts since
Feb 12, 2008

Reply 14. Re: HOW DO YOU VIEW "FAIR TRADE" - IS IT BUSINESS, CHARITY OR SOCIAL JUSTICE ? Jun 12, 2008 9:55 PM

in response to: Debbie Kreuser

Just a quick update on this idea of establishing an in-country database of individuals who could provide independent and objective evaluations of small in-country traders/artisans/producers. Have been flagging the idea among various international groups here, and a VERY positive reaction. These groups are not only in Viet Nam but other countries as well. We will work on it more and come up with a model for implementation.

From a number of different sources in these discussions are questions raised by others regarding if the in-country IFAT member is actually sourcing exclusively from what could be considered Fair Trade producers. Also raises the question of who is monitoring IFAT members.

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