Light on Fair Trade
Balancing Marketing with the Truth
Light on Fair Trade
Cambodia Struggles to Adapt
Operating a company with over 300 workers in a third-world country has given me a comprehensive view of world economic problems. While people here stress about losing their possessions, people in Cambodia stress primarily about surviving.
Approximately 70,000 garment workers have lost their jobs. Baskets of Cambodia cut 55 staff after several years of double digit growth. The remaining staff have been put on notice that we are at the mercy of the West, where over spending and over leveraging has created a money vacuum, loss of jobs and lack of credit for the small businesses and individuals who buy our products.
We offered a severance bonus for those who wanted to return to their vfillages. None accepted- Instead the remaining makers all chose to accept less work and wait to see if conditions improve. In the meantime, we still provide for healthcare as needed. Last year there was no end in sight to the amount of work. Our makers did not spend their money wisely or save.It became clear that third world countries also need financial guidance as their educational systems are woefully inadequate. All they see in Cambodia is that corrupt , powerful people become rich. They have few good examples to look up to. That is why BOC is developing guidelines to educate our makers on the basics of savings, bank accounts and always protecting some of what they have earned.
Meanwhile, the government of Cambodia seems worried about social unrest as more than 1/4 of the people in Phnom Penh, the capital, work in garment factories and have never suffered a downturn. January orders were down a whopping 72% from same period last year and few orders are on the horizon.
For Baskets of Cambodia, it is not so bad, and in fact it gives us time to catch up on quality and design and build the foundation for future growth, but for those companies that depended on the loose supply of easy money, it appears that failure is likely for many.
What is interesting is that even while the main concern of our workers is survival, they are still grateful for the simplest things. In the West, the amount of angst and worry is huge when compared to that of Cambodia, where conditions are really much worse. Here there is no government safety net, no unemployment, no renegotiation of loans, no food stamps- simply put- no nothing- yet the people still seem to lead lives with a richness, and a positive outlook often just for having enough not to worry about for the next few days. If trouble arrives, they will adapt in what we see as harsh terms, but to them it is merely survival.
In short, we have the luxury of worrying. They don't. Also- they are grateful for what they have - no matter how little. It's probaby about time for the people here to entertain the same basic concept.
TY
Approximately 70,000 garment workers have lost their jobs. Baskets of Cambodia cut 55 staff after several years of double digit growth. The remaining staff have been put on notice that we are at the mercy of the West, where over spending and over leveraging has created a money vacuum, loss of jobs and lack of credit for the small businesses and individuals who buy our products.
We offered a severance bonus for those who wanted to return to their vfillages. None accepted- Instead the remaining makers all chose to accept less work and wait to see if conditions improve. In the meantime, we still provide for healthcare as needed. Last year there was no end in sight to the amount of work. Our makers did not spend their money wisely or save.It became clear that third world countries also need financial guidance as their educational systems are woefully inadequate. All they see in Cambodia is that corrupt , powerful people become rich. They have few good examples to look up to. That is why BOC is developing guidelines to educate our makers on the basics of savings, bank accounts and always protecting some of what they have earned.
Meanwhile, the government of Cambodia seems worried about social unrest as more than 1/4 of the people in Phnom Penh, the capital, work in garment factories and have never suffered a downturn. January orders were down a whopping 72% from same period last year and few orders are on the horizon.
For Baskets of Cambodia, it is not so bad, and in fact it gives us time to catch up on quality and design and build the foundation for future growth, but for those companies that depended on the loose supply of easy money, it appears that failure is likely for many.
What is interesting is that even while the main concern of our workers is survival, they are still grateful for the simplest things. In the West, the amount of angst and worry is huge when compared to that of Cambodia, where conditions are really much worse. Here there is no government safety net, no unemployment, no renegotiation of loans, no food stamps- simply put- no nothing- yet the people still seem to lead lives with a richness, and a positive outlook often just for having enough not to worry about for the next few days. If trouble arrives, they will adapt in what we see as harsh terms, but to them it is merely survival.
In short, we have the luxury of worrying. They don't. Also- they are grateful for what they have - no matter how little. It's probaby about time for the people here to entertain the same basic concept.
TY
The Future of 'Fair Trade'?
http://www.jsonline.com/business/36811439.html
Just an example of using the term 'fair trade' but offering no specifics. Is this the future of 'fair trade' where everyone says they are OK but offer very little supporting information? This company may be great but it also shows how not insisting on specifics when the term 'fair trade' is used, it leaves the door open for potential abuse with the end result that vague standards become further watered down. Who needs specifics? I think they serve the interests of the workers more than anything.
TY
Just an example of using the term 'fair trade' but offering no specifics. Is this the future of 'fair trade' where everyone says they are OK but offer very little supporting information? This company may be great but it also shows how not insisting on specifics when the term 'fair trade' is used, it leaves the door open for potential abuse with the end result that vague standards become further watered down. Who needs specifics? I think they serve the interests of the workers more than anything.
TY
Fair Trade Wages in a Local Context
Often wonder what actually constitutes a 'fair trade' wage? So do I , and I have been following well abive minum 'fair trade' standards since 1996. Shortly after I started I watched a acquaintence turn her company website into a quasi-fair trade site virtually overnight.
What was missing and what is usually missing from the majority of 'fair trade' sites, is any reference to the wage paid. The easy response to any reference to wages paid is that they are 'fair' in the local context. That could mean that if everyone else receives poor wages, you can bet that 'fair trade' wages will be close to the prevailing 'poor' wage.
This approach does not project or empower the workers. In a sense it is like wages are locked down, and as in a prison, have little room to move. Shouldn't the 'fair trade' marketing angle allow for a better return to the workers than the prevailing poverty wage? And If the wages were posted, wouldn't that be an easy way to really empower the workers by giving the consumers the ability to compare wages when they buy?
The 'Local Context' Wage
This oft abused term claims that there is an equivalent wage relative to the US dollar and US living standards. I just saw an article claim on Wikipedia that $.15 has $3 buying power in Guatamala!! I would be willing to wager anyone that this is not true. The same thing is said in Cambodia- It basically works like this- If you prefer sitting on the sidewalk eating cheap food out of a baggie, sharing a wood hut with scores of others, not being even acknowledged when you go to the hospital for treatment - then compare that to living in a 3 bedroom insulated house with running water and electricity, driving down to get the morning latte, .....you fill in the blanks. Simply put , the situations are not the same. You have the option of drinking out of the tap water- for them it is a very real risk.
So when you shop for 'fair trade' items, if you are satisfied with this term 'local context', you are basically disempowering those on the ground doing the work who have no real say in how their wages are set. That is because this term can be grossly misinterpreted. If 'fair trade' producers listed wages in actual dollar amounts, it would easy to compare, then at the very least the workers would be fairly represented and those who wanted the most of the purchase returned to the workers, would be able to do this. (Price of living differences between 'poor' countries could be factored if the difference is appreciable.) If 'fair trade' is going to be marketed as any commodity, then this information (like wages) must also be fairly traded.
A very average 900 SF 2 bedrm duplex with parking next to me in Cambodia rents for $1600. No you don't have to pay this much, but the less you pay, the less you get - A low rent $600-$750 apartment is about the same as in the Seattle area. The point is- there is no 'local context' . If they want a life anywhere close to ours, they have to pay for it- no matter where they are.
A Potential Solution? Wages should have an upward bias - above any preceived 'local context' arguments. Our goal should not be the norm.
TY
What was missing and what is usually missing from the majority of 'fair trade' sites, is any reference to the wage paid. The easy response to any reference to wages paid is that they are 'fair' in the local context. That could mean that if everyone else receives poor wages, you can bet that 'fair trade' wages will be close to the prevailing 'poor' wage.
This approach does not project or empower the workers. In a sense it is like wages are locked down, and as in a prison, have little room to move. Shouldn't the 'fair trade' marketing angle allow for a better return to the workers than the prevailing poverty wage? And If the wages were posted, wouldn't that be an easy way to really empower the workers by giving the consumers the ability to compare wages when they buy?
The 'Local Context' Wage
This oft abused term claims that there is an equivalent wage relative to the US dollar and US living standards. I just saw an article claim on Wikipedia that $.15 has $3 buying power in Guatamala!! I would be willing to wager anyone that this is not true. The same thing is said in Cambodia- It basically works like this- If you prefer sitting on the sidewalk eating cheap food out of a baggie, sharing a wood hut with scores of others, not being even acknowledged when you go to the hospital for treatment - then compare that to living in a 3 bedroom insulated house with running water and electricity, driving down to get the morning latte, .....you fill in the blanks. Simply put , the situations are not the same. You have the option of drinking out of the tap water- for them it is a very real risk.
So when you shop for 'fair trade' items, if you are satisfied with this term 'local context', you are basically disempowering those on the ground doing the work who have no real say in how their wages are set. That is because this term can be grossly misinterpreted. If 'fair trade' producers listed wages in actual dollar amounts, it would easy to compare, then at the very least the workers would be fairly represented and those who wanted the most of the purchase returned to the workers, would be able to do this. (Price of living differences between 'poor' countries could be factored if the difference is appreciable.) If 'fair trade' is going to be marketed as any commodity, then this information (like wages) must also be fairly traded.
A very average 900 SF 2 bedrm duplex with parking next to me in Cambodia rents for $1600. No you don't have to pay this much, but the less you pay, the less you get - A low rent $600-$750 apartment is about the same as in the Seattle area. The point is- there is no 'local context' . If they want a life anywhere close to ours, they have to pay for it- no matter where they are.
A Potential Solution? Wages should have an upward bias - above any preceived 'local context' arguments. Our goal should not be the norm.
TY
Baskets of Cambodia Purses Copied and sold for More Than Double the Price!
Suite of Purses by Baskets of Cambodia
We know it is easier to copy another company than spend time with people in Cambodia actually developing fair trade product. We have been developing styles since 1996.
The COPY below is of a style designed and developed by Baskets of Cambodia in 2003. It is sold on eBay/Worldof Good "fair trade" site for $92! Baskets of Cambodia sells the real thing for under $40!!
see the convincing over priced copy at: http://worldofgood.ebay.com/viewItem?ItemId=310096302588 (UPDATE: LINK DISABLED DEC 1,2008 SHORTYLY AFTER WE EXPOSED THIS EGREGIOUS EXAMPLE! But we saved the picture below.) Companies that exploit the development efforts of others and then charge exhorbitant rates under the guise of 'fair trade' are doing a grave disservice to real ' fair trade' where products are developed in house, at company expense and sold at reasonable rates in order to encourage employment. If you like this style -
Call us at Baskets of Cambodia 1 866 774 8800 for the original quality..
We can refer you to a local retailer in your area where you can buy this purse at 1/2 this price or less and guarantee better prices for you AND better conditions for workers at the same time.
Or if there is no retailer in your area you can visit our website at www.saraye.com and compare for yourself. We also guarantee significantly higher quality in our purses and starting Friday, November 28 - free shipping.
THIS The lesser quality copy of our purse below is FOR $92! ??
Or take a look at the original design at the bottom of this page for less than $50.
Or you can buy one of the originals from Baskets of Cambodia (since 1996) in over 14 Color /Patterns
OR THIS -Average Retail Price- FOR $34-$50. ????
Call us for a retailer near you! Free shipping- Satisfaction Guaranteed.
See the Full Color Range @ www.saraye.com
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NOTE: Consider this a shameless plug for Baskets of Cambodia products. You can't go wrong, but there is also a higher purpose; Support those companies that develop their own product. This is the real gift to the third world. Companies that source through brokers from a comfortable distance, are there mainly for easy profits- profits that are to the detriment of the companies that are paying the necessary costs of development. Without product developers, there would be very little to sell.
Auditing the 'Fair Trade' Workplace
Making trade better for the actual workers is the best way to ensure good quality products- products people buy because they want to, as opposed to buying out of sympathy or guilt. 'Fair Trade' is always a work in progress. The idea that a label by itself is everything is a step above mere blind commerce, but getting to know the actual 'fair trade' company, it's character and practices really sends a much stronger message to those involved in 'fair trade'.
In practice, this strengthens the meaning behind the label. It gives the label life and prevents the label from resting upon the status quo. For example, my company in Cambodia paid well above market rates last year, but since that time inflation has been running as high as 22%. In this case, we need to adjust in order to prevent our 'fair trade' claims from stagnating.
At Baskets of Cambodia we are constantly facing new challenges. Our work force is in the range of 200-400 people depending on the time of year and the strength of sales. We pay significantly more than average for our products and because of our numbers, this creates potential problems by allowing room for a middle-man to interfere.
This could be in the form of someone taking orders to their village or house and paying others less to make the same product.
To deal with this problem, we are creating a database on all our workers that is constantly updated. With this database, our staff can do spot audits by visiting our workers independently at their place of work. By doing this we can minimize the potential for brokers, and ensure that everyone is paid according to company terms. This information is also made available for those involved in workers' welfare issues to audit.
We also compare production to what we feel an individual is capable of producing. Producing items of high quality and workmanship is the best way to make sure that children are not extensively involved in the production of our product. Low quality items inevitably attract children who generally work for free or next to nothing.
Any company, large or small should be able to do this, and any customer should be able to ask about the availability of this information. There exists an opportunity within 'fair trade' associated companies to ignore the facts on the ground and instead rely on brokers who of course, learn quickly to tell them what they want to hear.
When employed, this method exploits 'fair trade' for the advantage of easy profits.
Some companies are becoming larger, and sourcing from multiple locations. In many cases they have little direct contact with the worker but are overly anxious to keep everything purchased in the 'fair trade' category. This can easily lead to exploitation of both workers and the very concept of 'fair trade'.
At Baskets of Cambodia, we feel that constant introspection and oversight should be part of any 'fair trade' equation. 'Feel good' marketing can be as easy way of glossing over real 'fair trade' issues and can contribute to worker exploitation.
TY
In practice, this strengthens the meaning behind the label. It gives the label life and prevents the label from resting upon the status quo. For example, my company in Cambodia paid well above market rates last year, but since that time inflation has been running as high as 22%. In this case, we need to adjust in order to prevent our 'fair trade' claims from stagnating.
At Baskets of Cambodia we are constantly facing new challenges. Our work force is in the range of 200-400 people depending on the time of year and the strength of sales. We pay significantly more than average for our products and because of our numbers, this creates potential problems by allowing room for a middle-man to interfere.
This could be in the form of someone taking orders to their village or house and paying others less to make the same product.
To deal with this problem, we are creating a database on all our workers that is constantly updated. With this database, our staff can do spot audits by visiting our workers independently at their place of work. By doing this we can minimize the potential for brokers, and ensure that everyone is paid according to company terms. This information is also made available for those involved in workers' welfare issues to audit.
We also compare production to what we feel an individual is capable of producing. Producing items of high quality and workmanship is the best way to make sure that children are not extensively involved in the production of our product. Low quality items inevitably attract children who generally work for free or next to nothing.
Any company, large or small should be able to do this, and any customer should be able to ask about the availability of this information. There exists an opportunity within 'fair trade' associated companies to ignore the facts on the ground and instead rely on brokers who of course, learn quickly to tell them what they want to hear.
When employed, this method exploits 'fair trade' for the advantage of easy profits.
Some companies are becoming larger, and sourcing from multiple locations. In many cases they have little direct contact with the worker but are overly anxious to keep everything purchased in the 'fair trade' category. This can easily lead to exploitation of both workers and the very concept of 'fair trade'.
At Baskets of Cambodia, we feel that constant introspection and oversight should be part of any 'fair trade' equation. 'Feel good' marketing can be as easy way of glossing over real 'fair trade' issues and can contribute to worker exploitation.
TY
Trip to Columbus Circle
No trip to New York would be complete if on my way to the Met, I didn't stop by Whole Foods to see how the kiosk version of 'fair trade' was doing and to see if our products were still being copied, and sold there. (My company, Baskets of Cambodia started in Cambodia in 1996.)
Happily enough, I no longer saw cheap copies of our products sold and shamelessly marked 'fair trade and unique' - soma for the masses.
What I did see was interesting. At this World of Good kiosk, was a picture supplied by Baskets of Cambodia years ago and still in place. We had requested all our promotional material be removed from their promotional sites after having many of our purses rather ruthlessly copied. The rest of what I saw was also interesting; items clearly made in massive quantities- perhaps meant to be 'fair trade' tokens of sorts - maybe to serve as talismans for good luck, good karma, whatever.
Then above it all some glossy advertising for NCDP in Phnom Penh. (National Center for Disabled Persons) They are close to my house in Phnom Penh so I was quite interested. It was a great write-up - the same write-up World of Good was using in Atlanta - problem was nothing made by NCDP was actually being sold there.
Recently World of Good claimed they helped over 15,000 artisans although I think this claim has recently been pulled. It's kind of like me saying I am helping 15,000 Korean artisans when I buy a Hyundai; a wee bit misleading. At Baskets of Cambodia, we have over 300 people who work for us, and believe me our hands are full. I can't imagine being the General Motors of 'fair trade' - what that must be like.
But back to NCDP - whose products were nowhere in sight in either Atlanta or New York, but whose advertising was so prominent. NCDP is a small charity with recently between 30 and 40 people working for them so their output is not great. From the flyer on site, you would think they were a major supplier.
The items actually being sold by World of Good were clearly made is great quantities, yet there were no pictures featuring these obviously much larger operations than NCDP. The Fair Trade Federation sticker seemed to be on everything in sight, although World of Good stopped being a member sometime last year.
And there was this little picture of the smiling workers from Baskets of Cambodia, my company, even though we stopped selling to World of Good a few years back after blatant copies of our designs were being sold.
So the lesson appears to be - find large operations to make things you can call 'fair trade' - but at the same time find smaller operations where you can actually put the faces, the people in context, and use these to provide the feel good image. Sometimes the 'fair trade' pill can be a little hard to swallow. The lesson here is to add some sweetener in the form of companies or charities that can give your other operations more credence. World of Good has now joined with eBay on-line to further this concept and capture that 'fair trade' dollar.
TY
Happily enough, I no longer saw cheap copies of our products sold and shamelessly marked 'fair trade and unique' - soma for the masses.
What I did see was interesting. At this World of Good kiosk, was a picture supplied by Baskets of Cambodia years ago and still in place. We had requested all our promotional material be removed from their promotional sites after having many of our purses rather ruthlessly copied. The rest of what I saw was also interesting; items clearly made in massive quantities- perhaps meant to be 'fair trade' tokens of sorts - maybe to serve as talismans for good luck, good karma, whatever.
Then above it all some glossy advertising for NCDP in Phnom Penh. (National Center for Disabled Persons) They are close to my house in Phnom Penh so I was quite interested. It was a great write-up - the same write-up World of Good was using in Atlanta - problem was nothing made by NCDP was actually being sold there.
Recently World of Good claimed they helped over 15,000 artisans although I think this claim has recently been pulled. It's kind of like me saying I am helping 15,000 Korean artisans when I buy a Hyundai; a wee bit misleading. At Baskets of Cambodia, we have over 300 people who work for us, and believe me our hands are full. I can't imagine being the General Motors of 'fair trade' - what that must be like.
But back to NCDP - whose products were nowhere in sight in either Atlanta or New York, but whose advertising was so prominent. NCDP is a small charity with recently between 30 and 40 people working for them so their output is not great. From the flyer on site, you would think they were a major supplier.
The items actually being sold by World of Good were clearly made is great quantities, yet there were no pictures featuring these obviously much larger operations than NCDP. The Fair Trade Federation sticker seemed to be on everything in sight, although World of Good stopped being a member sometime last year.
And there was this little picture of the smiling workers from Baskets of Cambodia, my company, even though we stopped selling to World of Good a few years back after blatant copies of our designs were being sold.
So the lesson appears to be - find large operations to make things you can call 'fair trade' - but at the same time find smaller operations where you can actually put the faces, the people in context, and use these to provide the feel good image. Sometimes the 'fair trade' pill can be a little hard to swallow. The lesson here is to add some sweetener in the form of companies or charities that can give your other operations more credence. World of Good has now joined with eBay on-line to further this concept and capture that 'fair trade' dollar.
TY
Zakaria and FAIR
http://www.fair.org/index.php?page=3593
"Fairness and Accuracy in the Media" takes on the commentator Fareed Zakaria on one issue that confuses the the whole 'fair trade' perspective- the seeingly simplistic notion that all trade is good. If all trade is good and benefits the poor then it stands to reason that slavery if it benefits the poor is also acceptable. Who defines the floor? In fact, anyone can have standards that influence trade and should. That can and should be part of any trade equation. At the same time, his characterization of rich, priveleged brats protesting world trade has at least a grain of truth to it. Getting my coffee this morning. I thought it ironic that the local coffee store barista probably makes more on just tips in one hour than the people harvesting 'fair trade' coffee earn in a day.
It's too late now, but imagine if we had insisted on stringent trade and environmental standards at the start of China's resurgence? If done properly, we would have been seen as a positive force both for workers and the environment- a true friend, not just as American imperialists, opportunists. As it is, China assumes they have done all this on their own and forgets that we provided the market for which now we receive little respect. Without the western market to sell their products, they would be nowhere. Yet now it is too late to have real influence. We are now the weak ones for not standing up to our ideals, and the corrupt, ex-communists are the ones taking the credit.
TY
"Fairness and Accuracy in the Media" takes on the commentator Fareed Zakaria on one issue that confuses the the whole 'fair trade' perspective- the seeingly simplistic notion that all trade is good. If all trade is good and benefits the poor then it stands to reason that slavery if it benefits the poor is also acceptable. Who defines the floor? In fact, anyone can have standards that influence trade and should. That can and should be part of any trade equation. At the same time, his characterization of rich, priveleged brats protesting world trade has at least a grain of truth to it. Getting my coffee this morning. I thought it ironic that the local coffee store barista probably makes more on just tips in one hour than the people harvesting 'fair trade' coffee earn in a day.
It's too late now, but imagine if we had insisted on stringent trade and environmental standards at the start of China's resurgence? If done properly, we would have been seen as a positive force both for workers and the environment- a true friend, not just as American imperialists, opportunists. As it is, China assumes they have done all this on their own and forgets that we provided the market for which now we receive little respect. Without the western market to sell their products, they would be nowhere. Yet now it is too late to have real influence. We are now the weak ones for not standing up to our ideals, and the corrupt, ex-communists are the ones taking the credit.
TY
'Free Marketeers' Strike Back at Oxfam?
http://www.news.com.au/heraldsun/story/0,21985,24125925-5005961,00.html
Desperately short on substantive facts, nonetheless this 'free market think tank' has filed a complaint in Australia over unfair 'fair trade' and says 'fair trade' does not lift people out of poverty. A complaint- against Oxfam, claiming false advertising. I have no inside information about Oxfam, although I believe there is an inherent risk of stagnation if mere basic standards of 'fair trade' are the goal. Part of 'fair trade' should include a plan for upward bias or growth to stimulate product development and positively affect those making product. Otherwise, the charge that 'fair trade' exploits the poor more than helps them will always have some weight, and there are many examples that could support this argument. As well, there are examples of progressive companies with an upward bias on wages that at least have things moving in the right direction.
Desperately short on substantive facts, nonetheless this 'free market think tank' has filed a complaint in Australia over unfair 'fair trade' and says 'fair trade' does not lift people out of poverty. A complaint- against Oxfam, claiming false advertising. I have no inside information about Oxfam, although I believe there is an inherent risk of stagnation if mere basic standards of 'fair trade' are the goal. Part of 'fair trade' should include a plan for upward bias or growth to stimulate product development and positively affect those making product. Otherwise, the charge that 'fair trade' exploits the poor more than helps them will always have some weight, and there are many examples that could support this argument. As well, there are examples of progressive companies with an upward bias on wages that at least have things moving in the right direction.
Fashion Begins to Focus on Fair Trade/Organic/Recycled
http://www.guardian.co.uk/business/2008/aug/03/retail.fashion1
UK fashion trends shifts somewhat towards organic, ethically sourced, recycled materials. Focus is on higher quality.
TY
UK fashion trends shifts somewhat towards organic, ethically sourced, recycled materials. Focus is on higher quality.
TY
Global Envision a Division of Mercy Corps
http://www.GlobalEnvision.org
A site that deals with global environmental and trade issues comprenhensively and intelligently. Perhaps the best I have seen so far. Although charitably funded, this site is long on facts and information, which naturally makes me inclined to actually donate. Although I am new to this site, it appears they are very serious about their mission- not just their advertising! Their approach to poverty alleviation is very well thought out.
A site that deals with global environmental and trade issues comprenhensively and intelligently. Perhaps the best I have seen so far. Although charitably funded, this site is long on facts and information, which naturally makes me inclined to actually donate. Although I am new to this site, it appears they are very serious about their mission- not just their advertising! Their approach to poverty alleviation is very well thought out.