Fair Trade by definition is a system of exchange that honors producers, communities, consumers and the environment. It is a model for the global economy rooted in people to people connections, justice and sustainability. Fair Trade is an organized movement that promotes better trading conditions and sustainability in many developing second and third world countries. This practice involves the payment of higher prices to producers and advocates higher social and environmental standards. In turn helping the country move towards first world status. It’s a way to level the playing field, and help the developing country develop into a first world country.
Mostly fresh goods and natural resources are the center of trade between these developing countries to developed countries. Most notably are coffee and gold. These resources can account for almost 20 to 50 percent of their total trade. These goods are also marked as Fair Trade Certified by the International Fair Trade Organization. The price of the goods attempt to cover the living expenses, wages, education and medical care of the workers. Countries who import these goods are then checked by TransFair USA to ensure the importer or retailers are paying the proper price for the goods. Some countries that participate in Fair Trade are South Africa, Uganda, Tanzania, Kenya, Nicaragua, Peru, and Guatemala.
Fair Trade overall has received mixed results. There are concerns that the extra that is paid by importers for the workers and farmers ever really reaches them at all. There is little evidence of this at all. There are also questions as to whether Fair Trade actually creates positive economic growth. It is also questioned that this practice may also be hurting other farmers who do not participate in Fair Trade. There is a lack of studies proving that Fair Trade itself really works. Until there is there is really no way to know for sure if this way of trade is really worthwhile.
In closing the idea of Fair Trade is a noble idea. It enables these developing countries better take care of its workers, and promote positive economic growth through fair trade practices. It’s unknown though how much corruption takes place in these places, and whether or not the people who really need this help are actually receiving the help at all. Further economic studies will need to be conducted to better know this.
www.greenamerica.org www.transfairusa.org