POLI 441 Chapter Notes - Chapter reading: Flocert, Price Floor, Indep
22 Oct 2018
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Designed to foster associativity and democratic process that are tenants of the fairtrade org, the premium is decided democratically by the producers. Funds from premium used to fund projects like building schools, training, productivity improvements, investments in community infrastructure, water treatment system, env. Producers must provide reports summarizing impact on envir: all actors and groups in supply chain, importers/exporters must be fair trade certified. Fairtrade int. maintains standards for all commodities and flo-cert, indep company does certifying and inspections. When qualified usually given certification for year, renewed each year upon inspection. Fair trade overall associated with higher output and higher incomes. Correlation present but studies trying to control for possible exogeneity do not find significant differences between non fair trade products. Size restrictions on entry, targets small farms without permanent year-round labourers: with many available certifications with distinct yet overlapping standards then concern that this will be confusing and thus the info providing less effective.
