The Growing Role of Fair Trade - Essay Example

Fair trade ID] [Lecturer] The world economy has grown in recent years. International trade hasbeen the motivating force behind it. But with the more recent technological developments as well as reduced trade blockades, growth in trade is definitely on the rise. Developing counties have also stepped on this bandwagon, extracting the best out of their own respective economies through trade internationally as well as locally - within the country. The integration of trade into the world economy has really proved helpful for the developing countries as they can promote economic growth, development as well as poverty reduction within themselves. World trade has been increasing at an average rate of six percent for the last 20 years, which is twice the rate of world output. The integration of the world economy with the help of trade has lifted the living standards of the people within these developing nations, which is a positive sign. Sustained and consistent economic growth requires policies that can open trade and investment with the rest of the world. There is proof to it and it is that there has not been a single nation that has achieved economic stability without being open to the world for trade. International trade requires liberalization, i.e., openness to all and sundry within the world no matter what. The living standards are in direct proportion with them. There is a high need to promote and liberalize the manner in which trade is carried out within the world economy. It needs to be more generous to everyone and anyone as well as helpful for the developing nations so that more and more trade is carried out between the economic world markets. (Miles, 2006) Agriculture is one such example of being more liberal for the international trade market. Liberalization by both industrial and developing nations is necessary to realize trade’s potential that acts as a driving force for economic growth and development. It is up to the industrial and developed nations to be more broadminded towards the developing ones so that trade barriers are removed in the wake of open trade between all the countries listed in the economic world. Fair trade is a social movement which is organized in nature and it basically presents a model which is accepted worldwide. It comes directly under the norms of the international trade regimes whereby it promotes payment of a fair price in accordance with the social and environmental standards in different areas of production related with goods and supplies. Fair trade has the emphasis on exporting goods and supplies from the developing nations to the ones which are already developed. The goods which come under the ranks of the fair trade include the handicrafts, fresh fruit, coffee, bananas, tea, honey, cocoa, wine and a host of other products. The basic intention of having fair trade is to move the works of the producers from the developing markets down towards the more urbanized quarters of the world, which suggests that the works of these developing countries are appreciated and allotted with revenues in return. (Weber, 2007) This also helps the developing regimes to move from a position of vulnerability to security as well as economic self-sufficiency. The aspect of empowerment is also apparent from these undertakings since it allows for these developing nations to have more stakes in their produced goods over a period of time and thus allow them far more share in their own wealth. What this in essence does is to provide a greater share of equity which marginalizes the world trade levels as well as brings an end to the exploitation that has been happening over a long period of time, more so under the international trade tenets. However the critics for fair trade are many in number and they raise all sorts of movements in order to stop this fair trade once and for all. Some countries seem to benefit more than the others in the liberalization and globalization of trade. There of course, seem to be many losers as well as winners in this regard. But all in all, the development efforts they employ to the developing countries are a real plus for these nations. Countries that open their doors to the international economies have over the years enjoyed a considerable amount of growth and poverty alleviation. Fair trade has really benefited them in the long run and will continue to do so for them while for those, which remain narrow-minded and keep themselves away from the international economies remain alone in their own gloom of poverty and illiteracy, i.e., in developing countries. A number of different global organizations work in close unison with fair trade regimes since this brings in aid for the poor countries, uplift in economic levels for the ones which are on the development curve and an overall prosperity scenario for the countries that have already been established and are making both ends meet in an economically self-efficient manner. These social and environmental organizations include Oxfam, Amnesty International and Caritas International to name a few. What these organizations try to do is to devise ways and means through which fair trade could be bolstered between different world regions and the societies could benefit from these steps that are taken under such levels. Also there is unity of purpose and actions are carried out in a manner which works to the advantage of the whole globe rather than a single entity at the very end. Because of these very steps, there are critics present under the banner of the fair trade regimes which suggests that the close quarters under which fair trade is being carried out, there are certain weaknesses and potential threats which have marked the whole fabric of fair trade itself. However what is most important in this discussion is to understand that fair trade could actually benefit everybody as equity within the different nations of the world is achieved. The critics view fair trade as providing subsidy in the wake of impeding growth levels within the different nations of the world. Then there are certain segments of the left which time and again state in a negative connotation the whole meaning related with fair trade. This is in line with the non-meeting of challenges under the trading systems which are already in place and which are doing their utmost to meet the present day problems which occur every now and then. The significant fair trade principles and rules are in line with the varied trading relationships which seem to exist under any setting, society, country or region for that matter. These principles imply that there is a definitive provision for creating opportunities and similar avenues for the economically disadvantaged producers. Also efforts are made under the umbrella of the fair trade to have transparency and accountability within the ranks of fair trade itself. Capacity building is another significant principle which keeps the proponents of fair trade on their toes at all possible times. The producers’ independence is ensured and they are given the license to develop fair trade relationships through continuity as well as a chance to get access towards the new markets. Within a particular region or setting, payment of a fair price for the goods and supplies through dialogue and participation on the part of all the stakeholders is another significant undertaking that is remarked as a principle for fair trade. Gender equality similarly accounts for a significant principle of the fair trade basis. There is also a provision for having suitable working conditions for the above-mentioned stakeholders, no matter at whichever level they exist within the hierarchy. (Hayes, 2006) Lastly, there is the environmental protection principle embedded within the fair trade policy which acts as a rescuing act since it gives a chance to one and all to be at their best and to work in the most suitable of circumstances at all times. The important issues for the business world of today in the wake of the growing role of fair trade is one that is considered immense right from the onset. First and foremost, the business world must realize that fair trade exists in essence. When this realization is made, then only the business world could get their act together and work towards the betterment of each other. The business corporations, organizations and conglomerates have to play a positive and intrinsic role in line with the business levels so that the end result is one which manifests the hard work and dedication of the stakeholders, no matter at which level they put in their best – best for the sake of having fair trade implemented within the world order. (Bahadur, 2002) All said and done, there still is a long way to go before one could remark fair trade as being a successful undertaking on the part of the parties concerned. What this there in the future is something that can only be envisaged upon with a sense of optimism and in the sight of a better prosperous world of tomorrow. Bibliography Bahadur, Chandrika. (2002). Toward Free and Fair Trade: A Global Public Good Perspective. Challenge, Vol. 45 Hayes, Mark. (2006). On the Efficiency of Fair Trade. Review of Social Economy, Vol. 64 Miles, Marc A. (2006). Trade and Justice; Marc A. Miles Reviews Fair Trade for All: How Trade Can Promote Development. Harvard International Review, Vol. 28 Weber, Jeremy. (2007). Fair Trade Coffee Enthusiasts Should Confront Reality. The Cato Journal, Vol. 27 Word Count: 1,508 Read More