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Fair trade provides no significant benefits. To what extent do you agree - Essay Example

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Fair trade is a concept developed as a result of the growing recognition for the benefits people are accruing from trading and the growth of trading opportunities. The problem is that most of these benefits are not shared across the divide and not all people are aware of the…
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Fair trade provides no significant benefits. To what extent do you agree

Download file to see previous pages... Fair trade is a social movement that aims at helping developing countries to achieve better conditions when trading with others, as well as achieve those goals that promote sustainability within their borders. In this movement, the main aim is to create an advocacy movement that seeks to impose higher prices amongst exporters, as well as ensure that the social and environmental standards are satisfied (Kadey 2005: 1).
Dragusanu, Giovannucci and Nunn (2014a: 6-7) note that the settings of the fair trade commissions in the past aimed at dealing with five main attributes that would promote fair trade. The first one is pricing which aim at guarantee a minimum price for all goods in addition to a fair trade premium on all products sold. The prices and the premiums will be set separately, but with the producer in mind. The second is the aspect of the workers who must be free to associate with others, have safe working conditions, and wages that befit their legal minimum stated in the policies present. Regional balances will be drawn to ensure uniformity across a particular region. The third is the institutional structure where farmers need to create cooperatives that will make decisions democratically and transparently to effectively export products and administer premium aid. The premiums paid to the cooperatives will be accounted for by the administrators. The fourth attribute deals with the environment where harmful chemicals to the environment will be prohibited. This is to safeguard the environment and ensure good environmental practices remain etched into the farming management practices always. The last attribute deals with stability and access to credit where buyers may agree on long-term contracts and provide financial aid to promote producers when requested.
In most cases, the people are aware of the impact that better trading options have on ...Download file to see next pagesRead More
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