Table of Contents

Handbook on the Economics of Reciprocity and Social Enterprise

Handbook on the Economics of Reciprocity and Social Enterprise

Elgar original reference

Edited by Luigino Bruni and Stefano Zamagni

The recent era of economic turbulence has generated a growing enthusiasm for an increase in new and original economic insights based around the concepts of reciprocity and social enterprise. This stimulating and thought-provoking Handbook not only encourages and supports this growth, but also emphasises and expands upon new topics and issues within the economics discourse.

Chapter 14: Fair trade

Leonardo Becchetti

Subjects: economics and finance, behavioural and experimental economics, economic psychology, public sector economics, politics and public policy, social entrepreneurship, social policy and sociology, economics of social policy

Extract

Fair trade is a trade creation initiative, originated by importing organizations in Europe and the US, whose goal is to promote capacity building, inclusion and equal opportunities for marginalized agricultural and textile producers in poor income countries. A leading characteristic of the fair trade initiative is the strict definition of criteria required for producers’ organizations in order to have access to the fair trade value chain. With regard to the above mentioned criteria the International Fair Trade Association (IFAT, the umbrella gathering fair trade producer cooperatives and associations, export marketing companies, importers, retailers, national and regional fair trade networks and fair trade support organizations) defines that, when choosing which products to import, fair trade organizations have to be consistent with the following rules: _ Creating opportunities for economically disadvantaged producers: fair trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.

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