|
Economic globalization in its current form risks exacerbating poverty and increasing violence if not unchecked.
Joseph Stiglitz - former Cheif Economist, World Bank, 1997-2000
The current form of economic globalization is termed Free Trade or neoliberalism. It is the international condition by which no restrictions are placed by a government or governments on the ability of business to import or export. It is driven by the search for the lowest possible production cost and the highest possible profit. The alternative to Free Trade is called Fair Trade it is driven by social, cultural and environmental sustainability.
According to Elizabeth Martinez and Arnoldo Garcia, from Corporate Watch, Free Trade is about making trade between nations easier. It is about freer movement of goods, resources and enterprise in a bid to always find cheaper resources, to maximise profits and efficiency. It promotes the 'trickle down effect' of economic growth.
Unfortunately, Free Trade, or the constant search for greatest profit and efficiency is not often compatible with social justice, human rights, access to equality of education and opportunity and environmental sustainability. Simply, because these are goals for the greater good and can be in direct conflict to achieving lowest production costs with greatest output.
The International Fair Trade Association (IFAT) states that Fair Trade, in contrast, 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 rights of, marginalized producers and workers.
Fair Trade is more than just trading: it proves that greater justice in world trade is possible. It highlights the need for change in the rules and practice of conventional trade and shows how a successful business can also put people first.
The primary aims and objectives of Fair Trade are:
Creating opportunities for economically disadvantaged producers
Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.
Transparency and accountability
Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.
Capacity building
Fair Trade is a means to develop producers’ independence. Fair Trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.
Payment of a fair price
A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.
Gender Equity
Fair Trade means that women’s work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.
Working conditions
Fair Trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.
The environment
Fair Trade actively encourages better environmental practices and the application of responsible methods of production.
|