Introduction: the impact of Fairtrade

Valerie Nelson

Abstract

This chapter introduces the concept of the Fairtrade movement as well as an introduction to the chapters that follow. It asks whether or not Fairtrade can revise its methods, addressing issues such as share of value and assurance to buyers. Each chapter ultimately concludes that it is important for Fairtrade to adapt to a more flexible approach and understand its limitations better; otherwise it is at risk of falling behind and giving way to new strategies of international companies.

Keywords: Fairtrade, expansion, cultural economy, conventional trade, decentralization, strategy revision

The fair trade movement combines the efforts of many different organizations with a shared aim of achieving more equitable trading partnerships between disadvantaged producers and mostly Western consumers. This book focuses on one strand of this movement commonly known as 'Fairtrade' – the product certification system operated by Fairtrade International. Fairtrade has expanded rapidly in recent years, particularly in certain products such as tea and cocoa, but there is still a way to go before sector coverage is achieved in many commodities. Recent developments, such as the decision by one major chocolate manufacturer to promote their own brand rather than Fairtrade, albeit continuing an informal collaboration with them, means that the position of Fairtrade is also not secured in international markets. Fairtrade is a pioneer amongst the voluntary sustainability standards with a consumer label and particularly high visibility in certain markets. Unsurprisingly it has attracted more attention than other market-based mechanisms, including other voluntary sustainability standards to date, although this is now beginning to change.

This collection of chapters emerges at a critical juncture for Fairtrade. Its market expansion has been accompanied by increased attention to its effectiveness and there is increased questioning of its impact and relevance in many quarters. The case studies and overview chapter on impact assessment draw on detailed empirical studies of Fairtrade around the world and practical experience of conducting impact studies. The case studies highlight the context specificity of Fairtrade outcomes and impacts, suggesting that broad generalizations about Fairtrade effectiveness are unwise. What is needed is in-depth understanding of the complex interplay of multi-scale factors which shape livelihoods and environmental change at the local level, and of the role that Fairtrade plays in this dynamic over a period of time.

The chapter authors cast a critical eye over the key factors and processes in each place which influence the implementation and uptake of Fairtrade by producer organizations and companies and the eventual outcomes. The overview raises questions about how best to understand the outcomes and impacts of Fairtrade in a way which minimizes bias and supports rigour, but which also pays attention to usefulness and learning. Taken collectively, these chapters ask pertinent questions about the efficacy of Fairtrade and also provide practical suggestions given as to how improvements might be achieved.

Chapter 1 by Nelson and Martin situates the current (often polarized) debate on the impact of Fairtrade in the wider evaluation context. Approaches to monitoring and evaluation have emerged over past decades within international development, but appropriate approaches are contested. Mixed method approaches are highly valued, but have resource and skill implications and are not always that feasible in complex situations. Theory-based evaluation has come to the fore as a way of closely tracking and evaluating the contribution of a project or initiative against its intended theory of change, relying upon a different approach to causality. The politics of 'evidence-informed' policymaking require closer attention in international development than has been the case to date, and this includes in relation to Fairtrade. For example, even where there may be strong evidence, this evidence is not always used and can be ignored by decision-makers. In what is being called 'the post-truth' era it is not always easy to reconcile the push for evidence with the decision-making of governments or companies.

Fairtrade and other sustainability standards with limited resources face major challenges in responding to the evidence agenda. Many of the independent studies they have commissioned are criticized for not being sufficiently rigorous by those who hold to a very narrow idea of the gold standard. The Nelson and Martin chapter questions what is appropriate for Fairtrade in this context. Fairtrade, and the other sustainability standards, are already improving their own monitoring and evaluation systems, with support from their membership body ISEAL, but they continue to grapple with issues of rigour, cost, learning and utility.

Beyond the practical challenges of evaluation there are also strategic challenges. Many of the more rigorous impact evaluations funded by donors are showing mixed results. There are different reasons for this. One reason is that some impacts may not be visible as statistically visible differences, because of the high degree of variability, and the limited scale and coverage of impact assessments compared to the overall standard system implementation (many different countries and commodities) and the 'spillover' influence of Fairtrade on local markets. However, these findings also present growing questions about the capacity of Fairtrade to bring benefits to producers and its ability to tackle poverty in a transformative way, particularly in the light of the challenges facing global agriculture. Fairtrade needs to learn from evaluation work not only in a limited instrumental sense in specific localities, but to challenge the assumptions that it holds within its theory of change in order to scale up and deepen its impact.

The chapter authors in this book seek to inform debates about fair trade more widely, as well as the specific role of Fairtrade and its effectiveness, shining a light on the...