How ICT can enhance Fair Trade A collaborative project between Umass Dartmouth and University Kwazulu Natal October 2008 How ICT can enhance Fair Trade

A collaborative project between

Umass Dartmouth and University Kwazulu Natal

October 2008

How ICT can enhance Fair Trade Team Members How ICT can enhance Fair Trade

Team Members

How ICT can enhance Fair Trade USA Kaisa Holloway Cripps Arun Ghimire Sarah Towers South Africa Evelyn Mahlakeng Harsha Desai How ICT can enhance Fair Trade

USA

Kaisa Holloway Cripps

Arun Ghimire

Sarah Towers

South Africa

Evelyn Mahlakeng

Harsha Desai

How ICT can enhance Fair Trade Thesis

Thesis

How ICT can enhance Fair Trade ICT can enhance fair trade through a number of ways including infrastructure, e-commerce sites, agriculture and microfinance sites Fair trade, defined as a way to seek equity in international trade, is enhanced by a number of websites including World of Good, MicroPlace, Global Exchange, Craft Network and Transfair USA among others These e-commerce sites offers individuals, especially in developing countries, the opportunity for open markets and fair and competitive prices for their wares. The exchange encourages sustainable development and improving communities in developing countries In turn, ICT enables individuals the opportunity to personally finance individuals through e-banking microfinance websites, further enabling fair trade. A number of ICT resources about the benefits of fair trade through ICT can be found through online resources such as youtube How ICT can enhance Fair Trade

ICT can enhance fair trade through a number of ways including infrastructure, e-commerce sites, agriculture and microfinance sites

Fair trade, defined as a way to seek equity in international trade, is enhanced by a number of websites including World of Good, MicroPlace, Global Exchange, Craft Network and Transfair USA among others

These e-commerce sites offers individuals, especially in developing countries, the opportunity for open markets and fair and competitive prices for their wares. The exchange encourages sustainable development and improving communities in developing countries

In turn, ICT enables individuals the opportunity to personally finance individuals through e-banking microfinance websites, further enabling fair trade.

A number of ICT resources about the benefits of fair trade through ICT can be found through online resources such as youtube

How ICT can enhance Fair Trade What is Fair Trade? How ICT can enhance Fair Trade

What is Fair Trade?

How ICT can enhance Fair Trade “ Fair Trade 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 - especially in the South. Fair Trade organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade. Definition created by FINE, an informal Association of the four main Fair Trade networks How ICT can enhance Fair Trade

“ Fair Trade 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 - especially in the South.

Fair Trade organisations (backed by consumers) are engaged actively in supporting producers, awareness raising and in campaigning for changes in the rules and practice of conventional international trade.

Definition created by FINE, an informal Association of the four main Fair Trade networks

How ICT can enhance Fair Trade Fair Trade's strategic intent: deliberately to work with marginalised producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency to empower producers and workers as stakeholders in their own organisations to actively to play a wider role in the global arena to achieve greater equity in international trade.” Principles of Fair Trade Creating opportunities for economically disadvantaged producers Transparency and accountability Capacity building Promoting Fair Trade Payment of a fair price Gender Equity Working conditions Child Labour The environment Trade Relations How ICT can enhance Fair Trade

Fair Trade's strategic intent:

deliberately to work with marginalised producers and workers in order to help them move from a position of vulnerability

to security and economic self-sufficiency

to empower producers and workers as stakeholders in their own organisations to actively

to play a wider role in the global arena to achieve greater equity in international trade.”

Principles of Fair Trade

Creating opportunities for economically disadvantaged producers

Transparency and accountability

Capacity building

Promoting Fair Trade

Payment of a fair price

Gender Equity

Working conditions

Child Labour

The environment

Trade Relations

How ICT can enhance Fair Trade History in America: October is Fair Trade month. The idea of fair trade isn't new. It started in the United States, where Ten Thousand Villages(formerly Self Help Crafts) began buying needlework from Puerto Rico in 1946, and SERRV began to trade with poor communities in the South in the late 1940s The first formal “Fair Trade” shop which sold these and other items opened in 1958 in the USA How ICT can enhance Fair Trade History in Europe Oxfam UK began selling Chinese refugee crafts in the 1950s During 1960s and 70s, NGOs heightened need for fair marketing organization History worldwide UNCTAD conference held in Delhi in 1968 promoting Trade not Aid NGOs eastablished Southern Fair Trade Organizations

History in America:

October is Fair Trade month.

The idea of fair trade isn't new. It started in the United States, where Ten Thousand Villages(formerly Self Help Crafts) began buying needlework from Puerto Rico in 1946, and SERRV began to trade with poor communities in the South in the late 1940s

The first formal “Fair Trade” shop which sold these and other items opened in 1958 in the USA

History in Europe

Oxfam UK began selling Chinese refugee crafts in the 1950s

During 1960s and 70s, NGOs heightened need for fair marketing organization

History worldwide

UNCTAD conference held in Delhi in 1968 promoting Trade not Aid

NGOs eastablished Southern Fair Trade Organizations

What does fair trade certification mean According to World of Good fair trade certification means the company fits in with the strategic intent of Fair Trade: deliberately working with marginalized producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency to empower producers and workers as stakeholders in their own organizations to actively play a wider role in the global arena to achieve greater equity in international trade How ICT can enhance Fair Trade

What does fair trade certification mean

According to World of Good fair trade certification means the company fits in with the strategic intent of Fair Trade:

deliberately working with marginalized producers and workers in order to help them move from a position of vulnerability to security and economic self-sufficiency

to empower producers and workers as stakeholders in their own organizations

to actively play a wider role in the global arena to achieve greater equity in international trade

Fair trade global organizations IFAT: International Fair Trade Association Fair Trade Federation Fair Trade Labeling Organizations International(FLO)‏ How ICT can enhance Fair Trade

Fair trade global organizations

IFAT: International Fair Trade Association

Fair Trade Federation

Fair Trade Labeling Organizations International(FLO)‏

TransFair USA Nonprofit organization promoting fair trade Third party fair trade certifier Works with global brands including Starbucks, P&G, Costco and Sam's Club Certification considered 'gold standard' in ethical sourcing Photos courtesy of TransFairUSA How ICT can enhance Fair Trade

TransFair USA

Nonprofit organization promoting fair trade

Third party fair trade certifier

Works with global brands including Starbucks, P&G, Costco and Sam's Club

Certification considered 'gold standard' in ethical sourcing

Photos courtesy of TransFairUSA

The Flip Side of Fair Trade Flaws in fair trade agreements include lack of fixed prices and no incentive to produce high quality goods Examples include coffee production and marketing How ICT can enhance Fair Trade

The Flip Side of Fair Trade

Flaws in fair trade agreements include lack of fixed prices and no incentive to produce high quality goods

Examples include coffee production and marketing

Laying the Infrastructure How ICT can enhance Fair Trade

Computer Bank Refurbishes PCs for distribution in East Timor Fair Trade Technology Provides IT outsourcing services to developing countries Ecota Fair Trade Ltd. Finalist for an ICT project focused on fair trade practicing The Fair Tracing Project ICT program to track and measure fair trade How ICT can enhance Fair Trade

Computer Bank

Refurbishes PCs for distribution in East Timor

Fair Trade Technology

Provides IT outsourcing services to developing countries

Ecota Fair Trade Ltd.

Finalist for an ICT project focused on fair trade practicing

The Fair Tracing Project

ICT program to track and measure fair trade

Agriculture How ICT can enhance Fair Trade

Agriculture is a important sector for most developing countries The use of ICT with Agriculture posses the following opportunities and challenges Enhancing agricultural production; Improving market access Capacity-building and empowerment. How ICT can enhance Fair Trade

Agriculture is a important sector for most developing countries

The use of ICT with Agriculture posses the following opportunities and challenges

Enhancing agricultural production;

Improving market access

Capacity-building and empowerment.

e-commerce sites How ICT can enhance Fair Trade

World of Good Inc . An eBay company providing an online marketplace for fair trade goods The Body Shop Concentrates on natural products with a focus on community trade Craft Network Similar to World of Good Inc. searching to provide competitive outlet for fair trade goods Global Exchange An international human rights organization providing socially conscious gifts Edun Fair trade, for profit, high end clothing distributor focused on 'trade not aid' How ICT can enhance Fair Trade

World of Good Inc .

An eBay company providing an online marketplace for fair trade goods

The Body Shop

Concentrates on natural products with a focus on community trade

Craft Network

Similar to World of Good Inc. searching to provide competitive outlet for fair trade goods

Global Exchange

An international human rights organization providing socially conscious gifts

Edun

Fair trade, for profit, high end clothing distributor focused on 'trade not aid'

Microfinance How ICT can enhance Fair Trade

What is microfinance? Provides services through deposits, loans and insurance Comes from formal, semiformal and informal institutions as well as NGOs Individual investors can engage in microfinance via online platforms Evaluating microfinance Core performance indicators evaluate: Outreach Poverty level Collection Financial Sustainability Efficiency How ICT can enhance Fair Trade

What is microfinance?

Provides services through deposits, loans and insurance

Comes from formal, semiformal and informal institutions as well as NGOs

Individual investors can engage in microfinance via online platforms

Evaluating microfinance

Core performance indicators evaluate:

Outreach

Poverty level

Collection

Financial Sustainability

Efficiency

MicroPlace Entrepreneur and microfinance veteran created online platform to engage American investors in microfinance via an online platform MicroPlace serves as a third party platform via eBay connecting individuals with microfinance agencies globally Individual investors can search by different parameters, including gender and geographic area to invest Pros of microfinance Credit through microfinance acts as a catalyst for productive economic activity How ICT can enhance Fair Trade Cons of microfinance Microfinance alone is not sufficient in changing developing countries

MicroPlace

Entrepreneur and microfinance veteran created online platform to engage American investors in microfinance via an online platform

MicroPlace serves as a third party platform via eBay connecting individuals with microfinance agencies globally

Individual investors can search by different parameters, including gender and geographic area to invest

Pros of microfinance

Credit through microfinance acts as a catalyst for productive economic activity

Cons of microfinance

Microfinance alone is not sufficient in changing developing countries

Other Microfinance Resources Grameen Bank Kiva UN PlaNet Finance Angel Moola Fair Trade *Websites available online via wiki How ICT can enhance Fair Trade

Other Microfinance Resources

Grameen Bank

Kiva

UN

PlaNet Finance

Angel Moola

Fair Trade

*Websites available online via wiki

Other Resources How ICT can enhance Fair Trade

YouTube videos Why Fair Trade? Impact of Fair Trade Shopping with a Conscious Microfinance: Investing for social impact How ICT can enhance Fair Trade

YouTube videos

Why Fair Trade?

Impact of Fair Trade

Shopping with a Conscious

Microfinance: Investing for social impact

Conclusion How ICT can enhance Fair Trade

ICT plays a huge role in fair trade Transporting goods Levels of support Communication Marketing Photo credit: Oxfam How ICT can enhance Fair Trade

ICT plays a huge role in fair trade

Transporting goods

Levels of support

Communication

Marketing

Photo credit: Oxfam

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