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DEVELOPMENTS
2nd Quarter 1998
Department for International Development (DFID)
London, UK
George Foulks
Parliamentary Under Secretary for International Development
The ethical business and fairtrade movement is one of the fastest growing and most dynamic areas in development. It is something that educates and empowers people in the North and transforms the lives of poor people in the South. This is why the Department for International Development is putting greater emphasis on promoting fairtrade and backing a number of exciting initiatives.
A few years ago fairly traded coffee was seen as worthy but a very marginal product. It had a poor reputation for taste - remember the jokes about the Nicaraguan coffee tasting like sand? It was also quite difficult to find. Today fairtrade coffee, like fairly traded goods in general, has moved out of the margins and into the mainstream. These days one is hard pressed to find a supermarket that doesn't stock it. The taste now is excellent. And with the increased demand has come a much more competitive price.
Last year the Department supported the introduction of fairly traded coffee in the Palace of Westminster - the first major British institution to take such a step. This sends an important message to other businesses and organisations. We will soon be backing a move to encourage local authorities and businesses to serve fairly traded goods in their canteens and vending machines.
But the heartening fact is that consumers and business are already moving in the right direction. Supermarkets are interested in profits, and if their customers want to buy fairly traded goods then they will sell them. Recently the super- market Safeway reported that one in 20 of the customer calls they receive is to enquire about the way in which their produce is sourced. The Co-operative movement has also taken a lead in ethical consumerism and is now launching its own brand of fairly traded tea. I have been in the Co-operative movement all of my life and I am delighted that it is playing such a major role.
But almost all supermarkets and many other retailers are becoming increasingly involved. In March, the Ethical Trading Initiative was launched.
This is an alliance of business, non-governmental organisations and trades unions which works to further promote ethical trading through the establishment of codes of conduct for the sourcing of goods. It is also exploring ethical or social labelling of products and promotes ways of bringing the issues further into the mainstream.
Globalisation brings with it dangers. It is important that the fruits of a globalising world economy are not unfairly distributed. It is important that the producers in the poorest countries are not exploited through their cheap labour or the degradation of the environment. But globalisation also brings opportunities. In a shrinking world we now have access to more information - and are demanding to know more - about where our food and other goods come from and how it is produced. We are now asking business to behave in a more socially responsible manner and good companies realise that ethical business makes good business sense.
The power of this movement to make a real difference to the lives of poor people is immense. It also gives the consumers through their purchasing power a practical way to help make the difference. At the same time it creates a greater awareness of development issues in this country. Ethical trade is here to stay and is a key to a better future. We should all get behind it.
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