Monday 25 October 2010

'Is fairtrade fair?'



Often people talk enthusiastically about fair trade, but how realistic is it to make this claim? In this world, claiming that any trade is «fair» is a big statement. Most trade systems are so arranged that it can be almost impossible for people without financial assets to take any control of trade. Faced with a prevailing world system based on capitalist «free enterprise», it is probably inevitable that the principal beneficiaries of commerce will always be those who are already relatively well off. Workers are often prepared to accept low rates of pay only because the alternative might be no income at all. Trade creates great wealth for some at the cost of poverty for many others. Today, internationally, more often than not the situation for workers remains hard and is getting worse as inequalities increase. On the other side, it can be said that the aim of fair trade is clear; to get a better deal for Third World farmers. In order to win the Fairtrade tag, the application of which is monitored by Fairtrade Labelling Organisations International, companies have to pay farmers higher than the market price for their products. This means fair trade farmers are not at the mercy of the market's whims, and have extra money to invest in education for their children and other social needs. Fairtrade focuses on ensuring that farmers in developing countries receive an agreed and stable price for the crops they grow, as well as an additional Fairtrade premium to invest in social projects or business development programmes. Some feedbacks show that those farmers involved in fair trading are happy with the results. The farmers and workers involved in Fairtrade always talk about how much they, their families and their communities benefit. Yet others argue that fair trade can end up being a trap for farmers, tying them into a relationship of dependence with charity-minded shoppers in the West. Looking around us, the reality is that we can see no place where authentic «fair trade», meaning true social justice in a global perspective, has actually been achieved.  That social justice goal should certainly be the central cornerstone of everyone's aspirations for the world community. Sadly, whatever people might like to claim, justice and fairness remains a distant dream.

1 comment:

  1. Dear Manisha well said, but I want to ask a question to you..nothing is hundred percent in his world..Actually the purpose to promote fair trade is top ensure human rights and especially to demand for Women's rights and to stop Child Labour. According to ILO Convention there are around 70 percent women's around the globe who work more than the men's and even then they are getting less pay as compare to men's. Why is so?The aim behind the introduction was to promote human rights in the countries like Congo,Brazil,Mongolia where there are no Human Rights at all and some NGOS reports I can say that fairtrade has changed their life style and given them some relief..See for example Lutheran World Relief LWR report.

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