Honorable mention: Neveen Habaybeh (Al-najah University)

Fair Trade approach to sustainable and equitable market-based

Fair Trade is a social movement organization and a market-based approach designed to help producers in developing countries and promote sustainability. Supports the movement to pay a higher price to producers, as well as social and environmental standards. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate and flowers.

Fair Trade is working with people in poor countries to enable them to live in dignity and hope in the future. It works by paying reasonable and respectful to the producers, allowing them and their families to live not just a respectable life, but also to preserve life for the long term. It is therefore about development, not only for charity.

Fair Trade is more than just a trade fair, it is about providing greater justice for marginalized producers and traders. It highlights the need for change in the rules and practices of conventional trade and trading can be so just to people.

It is imperative to note that the trade fair will have other positive impacts. With the increase in income, the poor can invest in developing themselves, their industry, their families, their children’s education and thus for society as a whole. It is certainly a noble endeavor

The strategic objective of fair trade to work with marginalized producers and workers to help them to economic self-sufficiency and stability. It also aims to enable them to become stakeholders in their societies, as well as play a bigger role in international trade. Supporters of fair trade is the number of organizations, international development aid, social, religious and environmental organizations such as Christian Aid, and the Organization of SERRV International, Oxfam and Amnesty International, Catholic Relief Services and Caritas International.

 The five key benefits of Fair trade:

1.    Fair and stable prices

Increasing farmer incomes is one of Fair trade’s main objectives. By reducing the number of intermediaries between the farmers and the end consumer, farmers earn a larger share of the export price. But there are two other characteristics that add to this: a minimum price and an additional premium. The minimum price is calculated to ensure sustainable production and livelihood. The additional premium is paid into a fund which is invested in development projects. More about how it’s used in the next point.

2.    Extra income

A committee is set up to take care of this premium fund. This fund is then invested in building schools, clinics, community centres , funding scholarships, paying medical bills and providing low-interest loans. These loans are used to establish small income generating businesses. For instance, a farmer might use this money to start rearing animals for the local market. This means that, often for the fist time, farmers and estate workers don’t have to rely on the kindness of their estate farmers or the government to improve their lives but can take control of things and help themselves.

3.    Environmental stuff

Environmental protection and sustainability is part of every producer organizations  management policy. They have to comply with national and international laws of protection – that includes water, virgin forests and other ecosystems as well as waste management and the use of hazardous chemicals.

4.    Stronger position in world markets

Technical information and market knowledge help farmers access and get better prices in the conventional market. But also, because Fairtrade has created a specialist sector for their products, it means far easier access to mainstream markets in developed countries.

5.    Closer links between consumers and producers

The Fairtrade movement empowers consumers who are concerned about the reality of the stuff they buy every day. As consumers, Fairtrade accreditation gives us the peace of mind of knowing that the producers in question got a fair deal. The Fairtrade movement is helping producers and consumers trade as closely as possible, according to a set of shared standards.

As for the direction of fair trade, there are many, including:
1 – to emphasize that the fair trade and a means of conveying a political message against the occupation and support the Palestinian people in their struggle for freedom and independence
2 – work on building a forum for Fair Trade in Palestine and to promote interaction of Palestine with the fair trade internationally through the development of mechanisms for fair trade and local establishment of a committee of the trade fair participation of all parties to follow the pricing mechanisms and to ensure fair prices for agricultural products Palestinian in global markets, and gaining this step the importance of the overall movement Fair trade at the international level.
3 – Adoption of the methodology and a clear basis in the fair pricing of different products through the identification of the minimum prices based on the index of production cost and the cost of life in each country separately.
4 – To develop and expand the role of fair trade in supporting the products of the poor and small producers, artisans and cooperatives in poor countries Kmsthdwin main, to raise the quality of these products and facilitate their access to new markets, through a cut rate of return on fair trade and work to form a global fund to support fair trade
5 – the adoption of fair trade organizations for lobbying campaigns to modify and improve the conditions of international trade agreements and the terms of the overall business activities with Palestine and give them priority and a comparative advantage in that, and in this context to dismantle and reduce the dependency relationships of economic and trade the Palestinian-Israel and promote fair trade with them through the Palestinian Arabs in Israel and the forces of the just peace and democracy in the face in addition to circumventing the Israeli Palestinian products and marketing, as Israeli products
6 – to make a recommendation to the Legislative Council to enact special legislation for fair trade organizations and adopt a policy of a collaborative approach as a method is essential for agricultural development in Palestine.
7 – to promote the concept of fair trade and promoted in the media and the various local levels and the development of market research, information exchange and promote the use of alternative media specialist in the promotion process and work with local universities to adopt fair trade Kmsaq a separate section in the Platform for Management and Economics.
8 – Work to develop and promote the philosophy and identity and the role of fair trade as a tool of advocacy, sustainable development and as a branch of economic, social and cultural alternative to the movement against globalization, savage capitalism and policies destructive and support the globalization of our peoples and for the values ​​of justice, humanity and the adoption of this basis in the development of the concept explained to the trade fair and to be a centerpiece of the conference Second International Trade Fair
9 – warning of attempts by some international companies distort the image of fair trade and its noble objectives through Tqmusha roles for fair trade organizations.
10 – Adoption of producers’ cooperatives and consumers in the target Comertkzen major fair trade and expand its work to include both its trade (export and import)
11 – organization of international conferences and periodic regional fair trade organizations and the adoption of this international conference (1), the second conference to be held after two years. And work to create a network of local and regional trade fair
12 – work on the organization of women producers in cooperatives and promote women’s presence at the level of fair trade organizations.
13 – work on the development of mechanisms for exchange of information, transparency and mutual relations between fair trade organizations and the promotion of mutual trust between producers and consumers.
14 – expanding and promoting the development of Palestinian oil and develop a plan for marketing and infrastructure support to strengthen and expand its production as oil organic.

Principles of fair trade
Adopt fair trade advocates a number of guidelines. Movement plans to provide market access for marginalized producers, and linking them to customers, and allow to communicate with fewer intermediaries. It aims to provide higher wages than the wages usually paid to producers, as well as to help producers in developing their knowledge, skills and resources needed to improve their lives. It also seeks fair trade advocates to raise awareness of the philosophy of the movement among consumers in developed countries. [5] is trading and marketing of fair trade products either through “MEDC supply chain” where the fair trade organizations which import and / or distribution of products (known organizations, trade alternative) or through a “certification of products,” where is the adoption of products that are in line with fair trade standards, indicating that they were produced and traded, processed and packaged according to the criteria. [
And these principles can be summarized in the following points:
1. Buy products directly from small farmers most in need without a mediator between them and the consumer.
2. Determine the purchase price is just by looking at the real needs of small producers and their families, as well as taking into account the prices of those products in the market.
3. Relations with the peasantry is based on the rules of long-term partnership contracts, in turn committed to quality production of these peasants, and they have to evolve rapidly towards production of biological pesticides, chemical-free.
4. Give fair trade organizations small farmers an annual grant to enable them to finance projects that seek to develop permanent local.

Examples of the success of our Fair Trade in Palestine:
Cooperatives, which formed the Fair Trade in every village, which include severy one of them a number of farmers, working fair trade purchase of agricultural crops are in addition to olive oil at a lower price than the market price and therefore this is a support for these farmers and support of the national economy and the Palestinians.
On the other hand offers fair-trade Palestinian farmers loans and grants so that the work of agricultural projects can improve their economic situation ..
In addition there is a trend of the trade fair way to help women’s groups in villages and provinces by encouraging them to produce crops, home and works and works hand-and thus the fair trade purchase of them is Make a price to achieve their earnings in order to encourage them to increase the quantity and continuity in their work ..
Except for that fair trade works to provide loans to these women’s groups to work small projects themselves and helping them through the project development work in the countryside ..

 As the trade fair to provide project Trees for life, by providing a number of seedlings farm for each cooperative to promote agriculture and support the national economy can help trade also in resolving cases of temporary increase in supply and demand in local markets, removing it or reducer to price fluctuations, and the scarcity of supplies, in the end.
Could benefit from agricultural products, in particular, of the trade with the outside, as the agricultural markets tend, in particular, to be unstable, due to the inflexibility of supply (take response of agricultural products to market signals and time), and external influences on production (such as weather and pests) and because the demand for food tends to be little change, whether prices rose or fell (non-flexible!). It may be self-sufficient for a country of food and agricultural products to a large extent, large agricultural surpluses in good years, which will lead to strong pressure to push down prices of agricultural products. In this case could provide the global market area to get rid of this surplus, with a minimum of breach of local prices and incomes, while the opposite will happen in the years to poor farming.
However, it should be noted that the trade may themselves become a source of price instability. Consequently, the country which specializes in the production of a high degree of export of some goods, and relies heavily on imports of other goods, it is strongly exposed to swings in world prices. And affects the impact of these oscillations is also of commercial goods that are not included in the incoming and outgoing only marginally, in the absence of policy mechanisms designed to isolate domestic prices from fluctuations in world prices. Agriculture has been, traditionally, is the main sector in which these mechanisms have been applied, and with different results. Does not call for it to get something surprising, given the instability inherent in the international prices of agricultural products, and the importance attached by governments to stabilize food prices.

 Effects of trade on the pattern of income distribution within the country:

It is obvious that the workers and contractors, investors and owners of natural resources ( the owners of productive factors), those engaged in the manufacture of in a position to gain from increased trade, as the activities evolve expansion of the industry. On the contrary, the owners of the factors involved in the industries it has become necessary to compete with products imported from abroad.( the industries subject to competition contained, in a position where they may be at a loss from the expansion of trade. Dependent pattern of distribution of gains and losses arising from trade between the owners of productive factors on the situation in the markets concerned. However, the factors which employs extensively in industry, for example, employment in the textile industry or land in extensive farming, are, in general, are vulnerable because the gain or lose more than those that are not used intensively. Equally be the owners of productive factors, which specializes, to some extent, industry specific, and therefore relatively stable (for example, trimming trees in agriculture), or the owners of land that fit the kind of crops at risk of gain or loss is more than the owners of the factors less discrimination and more of the movement.
Accordingly, if there were not local industries produce goods imported (or substitute them soon), consumers (or producers who use them as inputs) will benefit from the trade, without there being a loser. In general, the trade between the industries where commercially traded products Almtfadilh from the same industry, the effects of negative less on local industries under the competitive set, from those caused by industries based on specialization, which can lead to break down the regulated industry to compete contained entirely.
Percentage of limited relative mobility of factors of productivity and product differentiation in the agricultural sector, compared with other industries, the sector is exposed in particular to the effects of trade 0 so that there is difficulty in replacing the use of agricultural land and convert them to use in cities or for the purpose of entertaining response to the competitive set, or find that the main employers of agricultural labor of another kind, as this requires in practice, rehabilitation, may mean, in many cases, migration to another place. Of course there is the possibility that farmers change the quality of the crops they grow so Etjoboa with international competition, but often the intervention, in this case, other factors such as weather, soil, and the technical skill and other factors, or exposure to restrict possible changes of the risk. Also requires a transition from agriculture or animal husbandry to other types of agricultural activity, high burdensome and time consuming. This has been a hardening of the factors, and characteristic of the agricultural sector is one of the reasons why governments have traditionally tended to protect farmers from the effects of international competition.
In this context, given the perspective of welfare business much attention to one of the issues concerning whether it was possible to compensate those who benefit from trade opening up those who are affected by it so that it can overcome objections the latter on the rule of free trade, and the distribution of gains from trade are the best. It may be possible at the theoretical level, but it is very difficult at the level of reality. The reason for this is difficult to agree on the correct size of the gains and losses, and identify the groups involved in this issue, as well as about the nature of the mechanism, which is mandated to direct payments from one group to another. If possible that governments seek to get some gains through, for example, export taxes. Can also call on governments to support those affected by some form of support or conversion, but is usually used for that taxpayer money (instead of money Exporters).

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5 Responses to Honorable mention: Neveen Habaybeh (Al-najah University)

  1. Tamara Cissna says:

    Thank you for sharing your insights! I noticed a theme that recurs throughout your essay—paying producers a reasonable wage for their products demonstrates respect. I think you make an excellent point. I wonder how many free-enterprise supporters reflect on this (that is, people who believe price should be determined strictly by the “laws of supply and demand”).

    How do you think sympathetic U.S. citizens can help more people understand that producers feel disrespected when they are paid very low wages for their goods? (Also, what would you say to those who argue that paying a premium may be disrespectful if this subsidy equates to charity?)

  2. Jennifer Grosvenor says:

    You raise important points, including: 1) there are political aspects of getting the developing country’s political structure to support fair trade, and 2) the need for media in the country to help educate and raise awareness of the benefits and how it supports sustainable development.

    I’m wondering to what extent this has been happening in Palestine.

    In the US most shoppers look for low prices and many (or most) have not heard about fair trade since money isn’t used to buy advertising. It seems that co-op stores and churches have been key avenues for awareness building through selling fair trade products and highlighting stories.

  3. Diane Adkin says:

    Thank you for this well thought out and articulate essay on fair trade. I am especially interested in the points you made in your Direction of Fair Trade section. Do you see a future when trade could really be fair across the world? Will it continue to be important to Palestine to compete in the world market? And do you see yourself including fair trade principles in your life after university, whether or not your job is with a fair trade company?

  4. Clint Baldwin says:

    This is an impressive, astute essay.
    Much of what you write is at a very high conceptual level.
    However, I believe that you yourself note the main difficulty right at the end of your essay.
    Impressive conjecture matters very little unless we can figure out how to translate it into practice.
    I applaud you for noting this very important point.

    So, how would you translate your theory into practice? The question that I am asking is not how would you suggest others ought to put fair trade theory into practice, but how would you — actually you — do it? What will it look like for you as you look at all the above principles that you have noted and try to run a fair and equitable business, as you have to navigate national and regional tax structures, employ and/or partner with others in the production process, set-up quality control processes, have to apply penalties to parties not measuring up to quality expectations, etc.?

    I ask this above question here, pushing the question you began to ask further, because your essay suggests you to be an astute observer who I hope already has or will also become an excellent practitioner.

    Finally, you suggest that it is important to develop the political messaging of fair trade. Well, my small encouragement is to use fair trade practices to encourage that most subversive and radical of all political messages: all are created in the image of God, all carry within them the spark of the Divine, none are too be excluded, all are infinitely priceless and everyone is a neighbor…no exceptions.

  5. Neveen habaybeh says:

    I have read all your responses and thank you to all and thank you for you have given me some of your time to also reading my article .. I’m sorry because I will not respond to all your comments to the lack of my time but I want to answer Diane Adkin:
    I believe that fair trade if it continued so in all parts of the world, it will evolve and have a very big payoff, and if it continues in Palestine that will evolve and improve their status and increase their income and become
    A country with economic return.
    For myself, I loved this work and encourage him and see myself in it after university if I had the opportunity to work within the context of the fields of press and media in this and the highest would in the level of the media and tried to have brought the people the correct ideas about fair trade and its importance at all levels.

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