33 Brown University Leadership & Global Engagement Summer 2103 Trade + Justice = Fair Trade & Equal Exchange Rodney North
Traditional, shade-grown coffee farms like this…
Were replaced by large scale, chemically intensive, monoculture plantations
The World in 1986 – Cont’d ▪ Market failure ▪ Destructive industrial, chemical-intensive farming ▪ The “mis-incentives” & mis-alignment of large corporations ▪ Uninformed / disengaged consumers ▪ Chronic poverty & hungry, marginalized small farmers
A Radical Response Was Required ☼ Support democratic co-ops of small-scale farmers
A Radical Response ☼ Direct trading relationships / cut-out the ‘coyotes’ & elites
A Radical Response ☼ Direct relationships Replace these 8 links …
A Radical Response … with these 5 links
A Radical Response ☼ Fair Trade: ◊ Higher, more stable prices
Higher, stable, more predictable prices
A Radical Response ☼ Fair Trade: ◊ Higher, more stable prices ◊ Affordable credit ◊ Direct, long-term relationships with farmer co-ops
A Radical Response Support organic farming
A Radical Response ☼ For ex. what kind of farming works here?
A Radical Response ☼
☼ Devastation from Hurricane Stan, 2005, Nicaragua
☼ Advocacy in partnership with activists & faith-based organizations:
☼ Consumer education / storytelling
☼ Practicing economic fairness & democracy at home, too Equal Exchange is a worker co-op with an egalitarian, democratic 1 person / 1 share / 1 vote structure
The Worker Co-operative model a.k.a. “the John Adams & Adam Smith business plan” ▪ Democratic ▪ For-profit + ▪ 4-to-1 pay ratio ▪ Can’t be sold
Sounds good – but has it really worked?
Pounds of Fair Trade coffee imported into the U.S. The Early Years
Companies that have begun to offer at least 1 Fair Trade product:
Other signs of success, viability, & scalability
Our sales
$10k investment in EE vs. S&P500 over 10 years
☼ Steady growth in our partnership:
Growth of product line / # and type of farmers served / industries touched
Lessons Learned? The importance of challenging / changing institutional power and… of helping people stay on their land