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

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Multi-stakeholder Approach to Advance Fair Trade Objectives

  1. 1. Multi-stakeholder Approach to Advance Fair Trade Objectives
  2. 2. Key Issues Facing Fair Trade SUCCESS!! @ Farmer, Consumer, Trade and Development debate New demands- So now need to…. <ul><li>Better understanding of impacts: </li></ul><ul><li>Limited information. </li></ul><ul><li>Basic need to understand costs and benefits of implementing program </li></ul><ul><li>Addressing increasing complexity/demand of market access: Confront changing market dynamics ( inter alia ) </li></ul><ul><li>Supplychain concentration ( esp. retail-level ); </li></ul><ul><li>Shifting end-markets (China, India, Regional and Biofuels); </li></ul><ul><li>Removal of support services; </li></ul><ul><li>Scale requirements threat to smallholder ; </li></ul><ul><li>Food security concerns </li></ul>
  3. 3. <ul><li>Need multi-stakeholder approach to: </li></ul><ul><li>address complexity of issues; </li></ul><ul><li>leverage resources/expertise; </li></ul><ul><li>unify message </li></ul><ul><li>Growth means increased financial service needs: </li></ul><ul><li>Often beyond capacity of FT traders/buyers. </li></ul><ul><li>Strong unified messages: </li></ul><ul><li>At the policy-level and consumer. </li></ul><ul><li>Be reference for good practices. </li></ul>Needs continued:
  4. 4. Addressing Specific FT issues: <ul><li>Need strong unified message </li></ul><ul><li>Set example/promote accountability (ISEAL code of good practice for Standard setting) </li></ul>External communica-tions <ul><li>Transaction costs often too high </li></ul><ul><li>Beyond the means of FT traders/buyers </li></ul>Finance <ul><li>Challenge to meet increasing/changing certification and technical assistance demands </li></ul><ul><li>Leverage expertise/knowledge to address generic support needs (enterprise building). </li></ul><ul><li>Concentration of supply: Focus TNC support on developing regions/coops </li></ul>Capacity Building <ul><li>Empower producers to plan </li></ul><ul><li>Identify how to maximize benefits and reduce costs </li></ul><ul><li>Inform minimum price calculations </li></ul>Impact Assessment Issues Area
  5. 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. 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
  8. 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
  9. 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)
  10. 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
  11. 12. FAST Projects: <ul><li>Consolidated Information Access Portal </li></ul><ul><li>Financial Literacy Training Toolbox </li></ul><ul><li>Harmonization of application process </li></ul><ul><li>Mechanism for Sharing Due Diligence </li></ul><ul><li>Harmonization of impact assessment process </li></ul><ul><li>Guarantee Facility for Social Lending </li></ul>
  12. 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”
  13. 14. Thank you! Contact Information: <ul><li>Christopher Wunderlich- Coordinator </li></ul><ul><li>Sustainable Commodity Initiative </li></ul><ul><li>[email_address] </li></ul><ul><li>Jason Potts- Coordinator- SCI </li></ul><ul><li>[email_address] </li></ul><ul><li>Ulrich Hoffman- UNCTAD </li></ul><ul><li>[email_address] </li></ul><ul><li>SCI: </li></ul><ul><li>FAST: </li></ul>