The Fair Trade Movement - Research Paper Example

The Fair Trade Movement Introduction The contemporary fair trade movement traces its roots back in the 1950’s when it wasknown as the Alternative Trade Organizations (ATO). Evidently, Alternative Trade Organizations were formed by humanitarian groups that sought to address the pertinent issue of poverty in the developing countries through alleviation measures. To this end, the humanitarian groups adopted the approach of cutting off the middleman from the supply chain of trade between small scale businesses in the Southern hemisphere and small scale producers in the Northern hemisphere (Warrier, 100). Evidently, Oxfam UK intervened by selling craftwork in Oxfam shops which were produced by Chinese refugees (Hutchens, 5). To this end, the result was increased amount of profits for the labour force in developing nations. In 1988, the Dutch chapter of the Alternative Trade Organizations, Solidarid, innovatively crafted a labelling mechanism. Evidently, it aided in the introduction of products within mainstream markets without betraying consumer trust in their acts of humanitarian assistance. Background Information In 1964, Oxfam UK formed the first Fair Trade Organization (Warrier, 100). In this regard, there were parallel interventions being undertaken in Netherlands. Consequently, an importing organization known as Fair Trade Original was created in 1967. To this end, Dutch third world associations started to sell sugar cane under the slogan, “by buying sugar cane, you offer poor people in third world countriea a chance in the sun of prosperity” (Hutchens, 5). Moreover, the third world Dutch groups proceeded to sell Southern handicrafts and by 1969, they opened the first ‘Third World Shop.’ Evidently, the Fair Trade shops or World shops have played a pertinent function in the Fair Trade Movement. In this regard, the Fair Trade Shops act as sites for intensive awareness creation and campaigning, besides the role of points of sales. In the period leading to the 1960s and 1970s, there was intensive desire for fair marketing organizations by socially inspired individuals and Non-Governmental Organizations located in numerous countries across Latin America, Asia, and Africa. In this regard, they believed that the marketing organizations would perform the roles of supporting poor and disadvantaged producers, offering assistance and providing advice. Consequently, this led to the creation of numerous Southern Fair Trade Organizations which established networks with the newly created Northern organizations (Hutchens, 5). Evidently, the North and South co-operation was centred on respect, dialogue, transparency and partnership. The mutual goal was towards achieving better equity in international trade. In addition, developing countries were engaged in international political platforms towards addressing the inequality and unfairness in international trade. In this regard, during the United Nations Conference on Trade and Development that took place in Delhi in 1968, the developing nations were addressing the issue of ‘Trade not Aid.’ To this end, the third world countries emphasized on the creation of mutual, and equitable trade partnership with the South. This was in defiance to the North’s approach which was involved in getting all the benefits and offering piecemeal benefits masqueraded as developmental aid. Evidently, development trade has been attributed to the growth of Fair Trade Movement since the late 1960s. Moreover, its growth is attributed to the responsive intervention against poverty as well as partly due to disaster emanating from the South. Its major focus during its inception was the marketing promotion of craft items. The eminent founders of the Fair Trade Movement were drawn from large humanitarian and religious organizations located in European countries. Consequently, collaboration with Southern counterparts led to the creation of Southern Fair Trade Organizations (Warrier, 100). Evidently, the Southern Fair Trade Organizations performed the work of mobilization and organization of the local producers and their produce. They equally offered social services to the third world producers and export services to Northern countries (Warrier, 100). Moreover, there was another parallel branch engaged in solidarity trade. To this end, such organizations were created to import products originating from progressive, Southern countries that were marginalized economically and politically. Consequently, the marketing intervention employed by the Free Trade Movement resulted to greater returns of profits to Third World producers through the elimination of exploitative intermediaries. The Free Trade Movement has gradually diversified in its marketing initiative to include certain food items such as cocoa, coffee and tea. Awareness Creation, advocacy and Campaigning At the genesis of the Fair Trade Movement, it aspired to raise awareness that was highlighting the problems faced by consumers that were in effect due to conventional, international trade. To this end, the movement aimed at instigating changes to the trade rules. Evidently, the product sales were in tandem with information that offered details on the producers, the production process and the conditions of living of the producers. Presently, the Fair or World Trade Shops have taken up the role of mobilizing consumers towards taking part in campaigning activities. The overall aim is to influence further global justice. Evidently, the pioneer conference for Europe Fair Trade Shops occurred in 1984. In this regard, the conference marked the onset of close cooperation among volunteers that were in duty stations throughout the Fair Trade Shops in Europe. Consequently, they established the Network of European World Shops (NEWS!) in 1994(Reynolds, Laura, Murray, and Wilkinson, 52). The Network represents about 3,000 Fair Trade Shops located across 15 European countries. To this end, its duties entail the coordination of campaigning activities in Europe as well as enhancing information and experience exchange pertaining to sales development and creation of awareness. In striving to create more coverage on awareness, the NEWS innovatively crafted a European World Shops Day in 1996. To this end, the campaign day was created to address a pertinent issue that often depicted a goal at the Continental level. The initiative was eventually adopted by IFAT which exposed it to wider global audience. Evidently, the pioneer World Fair Trade day was celebrated on 4th May 2002, and participation was by the entire global Fair Trade Movement fraternity. Over the span of subsequent years, the Fair Trade Movement has exhibited increased professionalism in advocacy and awareness creation activities. To this end, it produces attractive and elaborate campaign gear, publication of thorough researched documents and organizing of large scale public events. The movement has equally witnessed benefits arising from creation of European structures. These structures have assisted in the centralization and harmonization of advocacy and campaign work. To this end, the creation of the FINE advocacy office in Brussels was an important achievement. It conducts the duty of influence and lobbying the policy makers in Europe. In this regard, it receives support, management and funding from the entire Free Trade Movement as represented by FLO, IFAT, NEWS, and EFTA. These three affiliate organization result to the acronym FINE.There have been some noteworthy achievements as far as political lobbying is concerned. These include the establishment of communication measures by the European Commission in 1999. The European parliament also adopted resolution on Fair Trade in 1994, 1998 and 2006. Furthermore, the Contonou Agreement of 2000 recognized and acknowledged the Fair Trade. Networking by the Free Trade Movement The Free Trade Organization recognizes the crucial role played by networking towards achieving success. To this end the Free Trade Movement has established networks all over the world. Evidently, the regional networks that have been created include the Association Latino Americana de Commercio Justo, Co-operation for Fair Trade in Africa (COFTA),and Asia Fair Trade Forum) (Raynolds, Laura, Murray, and Wilkinson, 52. On the other hand, examples of national networks include Kenya Federation for Alternative Trade (KEFAT), the Bangladesh Ecota Fair Trade Forum, Fair Trade Forum in India, Association Partners for Fairer Trade Philippines, Fair Trade Group Nepal among others. Measuring Social Change The pertinent issue concerning the Fair Trade Movement entails its effectiveness in advancing social change. A research survey among co-operative leaders and coffee farmers was conducted by a non-profit organization known as Community Agro ecology Network (CAN) in 2004. The researchers sought to know the effect of Fair Trade certification on coffee producing communities and families in Mexico, El Salvador, Guatemala and Nicaragua. The findings established that Fair Trade certification had increase the level of income of families due to the elevated coffer prices they received. This increase was highly attributed to the elimination of exploitative middlemen. The researchers from CAN also sought to establish the parameters for quality of life among the farm families. Evidently, the farmers who sold their coffee produce in tandem with the Fair-trade price exhibited increased likelihood of saving their money and also credit access. In this regard, the benefit was attributed to the networks and cooperation through the cooperatives aided by national and international assistance. Mainstream Criticism against the Fair Trade Movement In the advent of increased market expansion as a result of Fair Trade Movement intervention, as well as the resultant rebound within the coffee market, there have been calls of criticism levelled against the Free Trade Movement. For example, in 2006, The Economist levelled and ideological criticism against the local, organic and ethical markets (Fridell, 24). To this end, the criticism was levelled against the quality of Fair-trade coffee. In addition, it stated allegations of violations in Fair-trade practices. It equally alleged that the payments of price premiums to the farmers were burdening the producers through exacerbation of oversupply (Fridell, 24). In another smear campaign, The Financial Times conducted interviews with Peru coffee pickers that were remunerated below the national minimum wage in the harvesting of certified Fair-trade coffee. This was an apparent breach of the Fair-trade standards. Consequently, such information was used in criticising the whole movement. Evidently, criticism from neoliberal marketers within The Financial Times and The Economist come as no surprise (Fridell, 24). However, there are also growing criticism concerns raised by social justice groups, some Fair-trade roasters and student groups. In this regard, they have elicited different reasons for criticising the development agenda, the principle of fairness as well as the future of coffee industry by the Fair-trade. For example, the Brazilian Landless People’s Movement (MST) and Via Campesina are farmer organizations which have labelled the market approach by Fair-trade towards development as neoliberal (Fridell, 24). They have equally challenged the Fair-trade Movement to engage in politics so as to achieve structural change. During a past students convention on Fair Trade in the United States, the students raised a query pertaining to how the engagement of large corporations affected the fair trade standards. Ironically, the same activists who have been campaigning for Fair-trade produce in the dining halls and cafes of Campuses are questioning how fair is Fair-trade? Moreover, a majority of Fair-trade activists and ethical consumers are expressing their discomfort in the sale of Fair-trade products via Multinational Corporations that exhibit monopoly over market power as well as labour practices that are unfair (Fridell, 24). Consequently, such questions are indicative of the widening disagreement by Fair-trade proponents as to whether it is appealing to mainstream Fair-trade in market structures and corporations that triggered the coffee problem in the first instance. To this end, it begs the question; whether markets are engines to effect social change or if social movements are the force in ensuring market changes.Evidently, the Fair Trade Movement has defended itself by claiming that it transfers the trade benefits into communal hands. In addition, it has reiterated that it is an instrument for sustainable development. Evidently, Trans-fair states have supported Fair-trade prices by stating that farmers are able to feed their families as well as take their children to school. In defence of ethical buying, fair-trade movement asserts that it can eliminate the norm for coffee in impoverishing rural communities. In addition, it claims that in the setting up of a price floor, production of coffee can acts as a rural development engine (Raynolds, Laura, Murray, andWilkinson, 52). Consequently, the Fair-trade movement encourages increased sale of Fair-trade coffee. This will eventually result to more gains to more farmers. However, there are still some critics who doubt the ability of Fair-trade to implement its claims. For example, an article on New York Times in 2006 by Jennifer Alsever, gave an account of how middlemen were still gaining a huge proportion of the profit. Furthermore, it stated that the actual money reimbursed to the farmers was slightly above the market price. This was in most cases far below the stated price of the fair-trade coffee. An issue of the Cultural Survival Quarterly also levelled criticism against the Fair-trade movement for not posing a challenge to free market parameter that was destructive (Lyon and Moberg, 47). To this end, the article pointed an accusing finger to the fair-trade movement for failing to exercise ‘fairness’ in the Fair-trade certification. To this end, the article pointed out that the Fair-trade certification placed the burden of transparency, fairness and sustainability to the farmer as opposed to the importers to roasters. Moreover, farmers are forced to bear the costs of changing their farms into organic practices that are sustainable. Furthermore, they are burdened with possession of certification that is expensive (Lyon and Moberg, 47).To this end, it is evident that the main criticisms levelled are pertaining to the issue of ‘mainstreaming with large corporations.’ An agenda that is being advanced by the Fairtrade certifies and the Fairtrade Labelling Organization (FLO). Conclusion The history of Fair Trade Movement has been in a span of over 60 years. During this period, the movement has evolved into a global outfit and gained recognition across mainstream business parameters and political spheres. Evidently, the Fair Trade Movement has achieved its core mandate which was to offer better trading environment for marginalized workers and producers. Furthermore, throught its network of affiliate organizations such as FLO, NEWS!, IFAT and EFTA, the movement has fostered teamwork and cooperation in areas such as campaigning, awareness creation, advocacy, monitoring and ensuring standards of Fair Trade are maintained. References Fridell, Gavin. Fair trade coffee: the prospects and pitfalls of market-driven social justice. Toronto: University of Toronto Press, 2007. Print. Hutchens, Anna. Changing big business: the globalisation of the fair trade movement. Cheltenham, UK: Edward Elgar, 2009. Print. Lyon, Sarah, and Mark Moberg. Fair trade and social justice: global ethnographies. New York: New York University Press, 2010. Print. Raynolds, Laura T., Douglas L. Murray, and John Wilkinson. Fair trade: the challenges of transforming globalization. London: Routledge, 2007. Print. Warrier, Meera. The politics of fair trade a survey. London: Routledge, 2011. Print. Read More