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The fair trade movement offers genuine
benefits for the developing
world
Fair trade refers to
a special international
business
mode which aims at
giving
more
profits
to
people
in
developing
countries.
The
definition
of
fair
trade
is
“
a
trading
partnership,
based
on
dialogue,
transparency
and
respect,
that
seeks
greater
equity
in
international
trade.
It
contributes
to
sustainable
development
by
offering
better
trading
conditions
to,
and
securing
the
right
of,
marginalized
producers
and
workers,
especially
in
the
South
”
(World
Fair
Trade
Organization
and
Fairtrade
International,
2009). Nowadays, there is a debate in the pubic
over whether fair trade
movement offers
genuine benefits for developing countries. Some
critics claims that
the producers in
the South can not get genuine benefits because
premium is taken in
hands of the
suppliers or powerful enterprises. However, the
fair trade movement does
benefit
developing countries in several respects, namely
higher income for producers,
reducing
child
labor
and
more
education
opportunities,
promoting
infrastructure
construction
as well as better health status.
There
are
a
number
of
critics
questioning
how
much
profits
producers
will
eventually get. Some claims that fair
trade
“
merely guarantees
that a fair price is paid
to the
producer, and has no way of controlling margins in
the rest of the supply
chain
”
(Fairtrade
Foundation, 2006). For instance, in African
countries, with the demand of
cocoa
still rising, many small producers struggle to
sell as much cocoa as they can to
earn
a
sustainable
income.
However,
cocoa
processing
is
taken
control
of
by
a
few
players, which increases
price pressure on producers who are at the end of
the supply
chain (Fair Trade
International, 2011). Harford also suggests that
“
For several
years
only 10 percent of the
premium that Costa, a UK coffee bar, charged for
Fair Trade
coffee reached the producer.
The other 90 percent went to
Costa
’
s bottom
line
”
(2005).
In
this regard, it seems that fair trade may fail to
protect the interests of
the poorest
producers.
However,
from
various
research
and
academic
literature,
fair
trade
does
offer
great benefits to the
South in terms of ensuring higher income for the
producers and
workers. This is because
producers can get premium by selling their
products to fair
trade organizations or
enterprises in the North. As Sushil (2010) states,
“
by providing
them
with
guaranteed
minimum
prices
that
may
be
higher
than
conventional
world
market prices
”
(p. 48), producers and workers are given a fair
chance to produce and
market
their
own
products,
which
contributes
to
higher
income
and
better
living
standard. For instance,
“
In Mali, Fair trade
certified organic cotton farmers earn 50%
more
than
conventional
farmers
”
(Fairtrade
Foundation,
2010).
Furthermore,
by
setting up institutes and
experimental farms in under-developed regions,
local farmers
are
trained
to
improve
the
quality
of
products
or
given
marketing
strategies,
after
which they will gain
valuable knowledge and skills. Indeed, fair trade
offers farmers
and workers a platform
to increase the control over their own future,
“
have continuity
of
income
and
decent
working
and
living
conditions
through
sustainable
development
”
(Sushil, 2010 p. 49).
Other than giving
producers higher income, the fair trade movement
also helps
protect
children
’
s
rights
in
some
under-developed
places.
Fairtrade
International
(2015) claims that the number of
children working in cocoa production in Africa
rises,
and as a result of increasing
demand of cocoa,
a child in
cocoa-growing
regions
in
Africa is more likely to
be a child labor than previously (Fairtrade
International, 2015).
However, there
are more powerful and persuasive evidence pointing
out that fair trade
organizations
have
taken
practical
measures
to
tackle
with
the
problem.
Leonardo,
Stefano, &
Pierluigi (2015) notes that, though fair trade
does not give a explicit ban
on child
labor, it still contributes a lot to reducing
child labor and promoting education
(as
cited
in
Laura
&
Elizabeth,
2015,
p.
533).
Another
evidence
is
that
the
International
Labor
Organization
has
set
a
standard
on
child
labor
to
prohibit
the
worst
form
of
child
labor
and
forced
labor
(Fairtrade
international,
2010).
More
demand for cocoa or other products
means more job opportunities. Those who used to
have
no
job
may
get
a
job
to
make
a
living
by
selling
products
grew
in
their
own
garden
to
fair
trade
companies
in
the
North.
To
put
it
another
way,
because
of
the
benefits
fair
trade
brings,
parents
can
get
an
income
exceeding
a
minimum
income
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