Question 10: What is Fairtrade, how does it strive to make a difference and is it effective in so doing?
While free trade focusses on international trade agreements and attempt to allow developing nations to compete with the developed world on an even footing, fairtrade has a more local and individual approach. While Fairtrade does care about the overall economy, their main focus is on “support[ing] farmers and workers” and those “who are amongst the most marginalised groups globally”. By working with individual companies, the Fairtrade organization attempts to ensure a level of quality among the products under their “mark”. They also want to increase the salary and better the living standards of all local workers involved in producing Fairtrade goods.
Through a system of partnerships, the Fairtrade Foundation helps set minimum price of goods which will cover all production of the said goods. This will enable maintain a sustainable system of production, in which all farmers and workers are protected by a “vital safety net”. According to the Fairtrade Foundation FLOCERT, the independent certification body of the global Fairtrade system conducts regular audits of all companies involved, and helps maintain and improve the system. Lastly there is the Fairtrade premium. This tool raises the price of the Fairtrade goods, and then places that amount into a communal slush fund. This slush fund is used for improving the social, economic and environmental conditions of the workers. Additionally, the workers are the only ones who can decide and regulate how to distribute the slush fund.
The question is, has the Fairtrade movement effort’s been successful? I believe that they have. It has seen large amounts of growth over the last few years. In the United Kingdom, the Fairtrade Foundation estimates that sales of certified goods equalled £1.32 billion in 2011. This equals an 11% increase from 2010. However, the most important achievement of the Fairtrade movement “has been to shine a light on the issue of trade justice and social development in the global South”.
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