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33 Brown University Leadership & Global Engagement Summer 2103 Trade + Justice = Fair Trade & Equal Exchange Rodney North rodney@equalexchange.coop
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Traditional, shade-grown coffee farms like this…
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Were replaced by large scale, chemically intensive, monoculture plantations
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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
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A Radical Response Was Required ☼ Support democratic co-ops of small-scale farmers
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A Radical Response ☼ Direct trading relationships / cut-out the ‘coyotes’ & elites
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A Radical Response ☼ Direct relationships Replace these 8 links …
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A Radical Response … with these 5 links
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A Radical Response ☼ Fair Trade: ◊ Higher, more stable prices
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Higher, stable, more predictable prices
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A Radical Response ☼ Fair Trade: ◊ Higher, more stable prices ◊ Affordable credit ◊ Direct, long-term relationships with farmer co-ops
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A Radical Response Support organic farming
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A Radical Response ☼ For ex. what kind of farming works here?
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A Radical Response ☼
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☼ Devastation from Hurricane Stan, 2005, Nicaragua
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☼ Advocacy in partnership with activists & faith-based organizations:
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☼ Consumer education / storytelling
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☼ 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
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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
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Sounds good – but has it really worked?
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Pounds of Fair Trade coffee imported into the U.S. The Early Years 1986 - 1999
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1986 2000 2011
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Companies that have begun to offer at least 1 Fair Trade product:
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Other signs of success, viability, & scalability
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Our sales
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$10k investment in EE vs. S&P500 over 10 years
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☼ Steady growth in our partnership:
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Growth of product line / # and type of farmers served / industries touched
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Lessons Learned? The importance of challenging / changing institutional power and… of helping people stay on their land
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