Fair Trade I: Why Fair Trade?

The concept of globalization is commonly viewed with a negative connotation, especially in developing or “Third World” communities. A recent survey by Roy Morgan International shows that the less “developed” or “globalized” a nation is, the more likely they are to view the process of globalization in a negative light (Levine and Morgan, 2005). “Ethical” or “Fair” trade attempts to solve some of the negative implications of the deregulation of markets, liberalization of trade and increase in activity of Multi National Enterprises (MNE) which drive globalization (Barrientos, 2000); thus using these forces to the benefit, not detriment, of mankind. The modern Fair Trade movement brings together Non Governmental Organizations (NGO’s), companies, unions and governments to address issues of trade inequality. Paradoxically working within and against the market positions Fair Trade to become a powerful actor in the rebalancing of global commodity chains which, in the end, is a goal in poverty reduction, economic equality and peace globally.

Photo: Kuapa Kokoo Fair Trade cocoa cooperative, where Fair Trade cocoa farmers make $1700 a ton when the world price is $700. That means that for every 2 tons, every 4000 pounds, of cocoa sold, the villages can buy one borehole- a well that accesses clean water. Contaminated water is the major cause of death and disease in these areas because they simply do not have clean water. A $3000 borehole buys clean water for a whole village. Sarah Scarborough, 2005.