What is fair trade and what does it hope to achieve?
What will be an ideal response?
Answer: Fair trade is a variation of the international trade model of development, in which products are made and traded following practices and standards that protect workers and small businesses in the developing countries. With fair trade, a higher percentage of the sale price goes back to the producers.
Because many farmers and artisans in developing countries are unable to borrow from banks, fair trade provides an opportunity to these small farmers and small business people to get access to funding. By banding together in fair trade cooperatives, they can get credit, reduce their raw material costs, and maintain higher and fairer prices for their products. These cooperatives are managed democratically, so farmers and artisans learn leadership and organizational skills. The people who grew or made the products have a say in how local resources are utilized and sold. Safe and healthy working conditions can be protected. Consumers in the developed countries are asked to pay slightly higher prices for the products, with the knowledge that the proceeds will be going back to support local artisans in poor countries.
Fair trade requires employers to pay workers fair wages. It also permits union organizing and complies with minimum environmental and safety standards.
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