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Fair Trade, CrossBorderProsperity and Muhammad Yunus : together for worldwide prosperity and empowered producers in developing countries

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Fair Trade, CrossBorderProsperity and Muhammad Yunus : together for worldwide prosperity and empowered producers in developing countries

Rechten: Alle rechten voorbehouden

Samenvatting

The objective of this paper is to examine how a combination of the concepts of Fair Trade, CrossBorderProsperity (CBP), Yunus' microcredit and social business could strengthen the producers' socio-economic situation and position in the free market. Small-scale producers in developing countries are being exploited and live in many cases in poverty without perspective to lift themselves out of their situation.

• Fair Trade advocates fair trading practises by paying a 'fair' price and establishes an equal partnership based on trust and respect with producer cooperatives in developing countries.
• CBP is a concept of change management from the roots, taking the local culture into account and empowers the poor by making them aware of their capabilities and resources. • Microcredits are small loans to poor people, who are otherwise left out by financial institutions because they believe that poor people are not credit-worthy. These loans have low interest rates and provide poor people with the possibility to start business activities.
• Social Businesses do not aim to maximise profit, but social good. Profit generated is not paid to shareholders, but invested back into the business' social cause.

As these concepts in themselves improve the producers' socio-economic
situation and position in the free market, the actual aim and challenge is to create a synergy effect by combining these concepts such that the producers will be empowered from which an interdependent and equal partnership will arise.
The important findings in this thesis are that there is not one single
approach having the power to improve the producers' socio-economic situation and position in the free market. However, a crucial condition to the worldwide spread and success is the paradigm switch from profit maximisation to social responsibility and social entrepreneurship and awareness raising that poverty is organised and thus prosperity can be organised too. The recommendations given are evident for any approach aiming to provide producers the ability of self-help.


Recommendations:
- Empower producers and make them aware of their capabilities and resources.
- Make information technology accessible in developing countries, also in rural parts, so poor people are not left out and can obtain relevant information (for example market prices).
- Advocate community spirit, problems can be solved in a well-functioning community.
- Include grass roots and Diaspora, to ensure local characteristics are adhered to and to ensure success in a sustainable way.
- Make use of ethical banking and sustainable banks which invest
transparently and ethically, and whose goal is maximising social good.
- Advocate forming of producer communities as it is beneficial to
performance, but also ensures producers have a stronger position in
negotiations.
- Raising awareness that poverty is organised and that therefore prosperity can be organised too.
- Further research. CCODER in Nepal is an example of best practise in
empowering producers.

Toon meer
OrganisatieDe Haagse Hogeschool
OpleidingESC Europese Studies / European Studies
AfdelingAcademie voor European Studies & Communication
PartnerCrossBorderRelations
Jaar2010
TypeBachelor
TaalEngels

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