Multi-stakeholder Approach to Advance Fair Trade Objectives

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Presentation given by Christopher Wunderlich (Sustainable Commodity Initiative IISD/UNCTAD) at the 5th Brussels Development Briefing - Brussels 16 April 2008

Presentation given by Christopher Wunderlich (Sustainable Commodity Initiative IISD/UNCTAD) at the 5th Brussels Development Briefing - Brussels 16 April 2008

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  • The Sustainable Commodity Initiative (SCI) is coordinated by the United Nations Conference on Trade and Development and the International Institute of Sustainable Development. The SCI’s goal is to promote economic, environmental and social sustainability in agricultural commodity supplychains. The focus is on market-based and voluntary standards programs and support for smallholders ability to produce sustainably and access sustainable market.

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  • 1. Multi-stakeholder Approach to Advance Fair Trade Objectives
  • 2. Key Issues Facing Fair Trade SUCCESS!! @ Farmer, Consumer, Trade and Development debate New demands- So now need to….
    • Better understanding of impacts:
    • Limited information.
    • Basic need to understand costs and benefits of implementing program
    • Addressing increasing complexity/demand of market access: Confront changing market dynamics ( inter alia )
    • Supplychain concentration ( esp. retail-level );
    • Shifting end-markets (China, India, Regional and Biofuels);
    • Removal of support services;
    • Scale requirements threat to smallholder ;
    • Food security concerns
  • 3.
    • Need multi-stakeholder approach to:
    • address complexity of issues;
    • leverage resources/expertise;
    • unify message
    • Growth means increased financial service needs:
    • Often beyond capacity of FT traders/buyers.
    • Strong unified messages:
    • At the policy-level and consumer.
    • Be reference for good practices.
    Needs continued:
  • 4. Addressing Specific FT issues:
    • Need strong unified message
    • Set example/promote accountability (ISEAL code of good practice for Standard setting)
    External communica-tions
    • Transaction costs often too high
    • Beyond the means of FT traders/buyers
    Finance
    • Challenge to meet increasing/changing certification and technical assistance demands
    • Leverage expertise/knowledge to address generic support needs (enterprise building).
    • Concentration of supply: Focus TNC support on developing regions/coops
    Capacity Building
    • Empower producers to plan
    • Identify how to maximize benefits and reduce costs
    • Inform minimum price calculations
    Impact Assessment Issues Area
  • 5. Key Areas: What is the Sustainable Commodity Initiative? A multi-stakeholder platform to promote sustainability in commodity sectors for pro-poor development. Focus- Voluntary; Market-based standards approaches Partnering with FairTrade Movement Support Services (Capacity Building) External communication (Policy/Consumer) Access to affordable Finance Impact Assessment Sustainable Production and Trade (Smallholder focus)
  • 6. Impact Assessment: Committee on Sustainability Assessment (COSA) Goal : Create tools for measuring the impacts of implementing sustainability practices and programs at the field level. Based on cost/benefit analysis. Empower producer and other stakeholders through provision of information (credible data)
  • 7.  
  • 8. Capacity Building: Sustainable Commodity Assistance Network (SCAN) Goal: Increase smallholder access to sustainable markets by creating sustainable enterprises ( via global cooperation ). Drivers : Lack of support-services (technical assistance) at smallholder/producer level; Limiting their access to sustainable markets (and ability to stay in markets generally) Partners identified need to leverage resources to address common training issues
  • 9. SCAN Partners: Funder (Dutch) HIVOS Standard-setter Utz Certified Research/Technicalsupport (French) CIRAD Support services (Dutch) SNV Standard setter Rainforest Alliance Technical support TWIN Trading Umbrella Org for Standard setters ISEAL Research/Technical support (UK) CABI International Support-services Commodity Support Network Standard-setter FairTrade (FLO/through producer orgs) Standard-setter- Organic IFOAM Type Organization
  • 10. Process: National Implementation Platform Linked to International: Needs assessment and Coordinated, Customized Support Key Areas Identified for Support (Generic Support Approach): Good Agricultural Practices/Sustainable Practices Organizational Development Financial Literacy/Risk Management Traceability/Quality Management Systems Market Information (access/use)
  • 11. Smallholder Access to Affordable Finance: Goal: Increase smallholder Small and Medium Enterprises access to affordable finance through creation of a trade association of financial service providers. Drivers : Trade finance critical for SMEs entering sustainability programs Need for more efficiency and coordination to lower transaction costs Steering Committee: Rabobank; Root Capitol; Cordaid; Forest Trade; IISD support: Citigroup, Cordaid
  • 12. FAST Projects:
    • Consolidated Information Access Portal
    • Financial Literacy Training Toolbox
    • Harmonization of application process
    • Mechanism for Sharing Due Diligence
    • Harmonization of impact assessment process
    • Guarantee Facility for Social Lending
  • 13. Policy Linkages/ External communications: Trade Standards Practitioners Network ISEAL (Affiliate member) Information sharing Working with ICO (coffee) and ICCO (cocoa) International Commodity Bodies Global Initiative on Commodities CFC/ UNDP/UNCTAD/ACP Group to: Raise awareness on commodities role Unify multi-stakeholder strategy SCI- Leading Civil Society Consultation: “ Chatelaine Consensus”
  • 14. Thank you! Contact Information:
    • Christopher Wunderlich- Coordinator
    • Sustainable Commodity Initiative
    • [email_address]
    • Jason Potts- Coordinator- SCI
    • [email_address]
    • Ulrich Hoffman- UNCTAD
    • [email_address]
    • SCI: ww.iisd.org/markets/
    • FAST: www.fast-international.org