Why can Fair Trade help end poverty? And how can we help retailers carry fair trade goods?

This blog post has been published on Blog Action Day 2008, on October 15.

In the past, I have said that fair trade is a market-based approach to alleviating global poverty and promoting sustainability. But why do I say that it can alleviate poverty? There are various reasons why fair trade is a feasible solution to poverty.

To begin with, it is a practical, sustainable way to achieve development in all the corners of the world. This is because it takes advantage of the good aspects of “free markets”, and it connects workers, farmers and artisans around the world with customers in developed nations. Fair trade is all about connecting producers with a market.

It is important to note that fair trade is not charity. Through fair trade, producers and farmers are empowered with market information so they can better serve that market. They are also educated in business practices so they can stay in business even if the market changes. Finally, they are given a little push to get started, so help them believe in themselves, and to help them finance their projects. They have every right to participate in the world markets, but must first be given the tools that are readily available in the developed world.

The system remains sustainable, in part, because fair trade products are not necessarily more expensive than conventional products. This is because the money it took to make the product is re-distributed. In other words, the “slice” of the total cost of the product that goes to the producer is greater. In addition, many middle-men who used to take advantage of the poor producers are no longer involved in the transaction.

Finally, by buying fair trade you are getting more bang for your buck if you are also an environmentalist. Fair trade standards encourage producers to use natural and recycled materials, and to have little impact on the environment. Therefore, buying fair trade is good for the people and the planet.

If you want to end poverty, one of the best ways to help is to buy fair trade products. By doing so, you will participate in a sustainable trade system that rewards producers fairly for their work, and encourages development in poor communities around the world. You can think of it this way: if you donate $100,000 to a village in a poor country, they may be able to build a hospital. But what happens next? More than likely they won’t get another $100,000, or at least not soon enough, so they won’t be able to hire doctors or buy medicines. However, if people from that village create several products and are compensated fairly for them, they will have sustainable income for a long time. This will ensure that they have enough resources to rise out of poverty and start developing their community.

Fair trade is growing in popularity very fast. Retailers need to research how to carry fair trade products to be able to meet the demand. We at Handmade Expressions are always happy to introduce big and small retailers to the idea of fair trade. We can work with you to see what products you can carry, how you can improve your image by carrying fair trade products, and we can even design fair trade products with your company’s logo. We believe that nobody wants to be “unfair”. Thus, we want to help as many retailers as possible take that first step to integrate sustainable practices into their business.

Feel free to post comments and questions about this information!

Posted by Juan Portillo on 10/15/08