Fairtrade International Expertise
SOCIAL EXPERTISE
In the policy document "Theory of Change and Indicators", FLO outlines a focus on 1) empowerment and 2) maintaining sustainable livelihoods in regards to creating social development on the FLO-certified coffee production site. Furthermore it explicits the scientific background of their understanding of these terms:
1) Empowerment
FLO's definition of empowerment stems from a World Bank report on poverty prevention and empowerment: "the expansion of assets and capabilities of people to participate in, negotiate with, influence, control and hold accountable the institutions that affect their lives'.
The World Bank report further stresses that improving empowerment is depending upon "political, institutional, cultural, and social contexts" in the given locality. Hence it concludes that there is no single model for empowerment. FLO adopts this point into it's theory of change, and "recognizes that Fairtrade can have unexpected or unintended consequences, both positive and negative".
2) Sustainable livelihoods
The notion of sustainable livelihoods is sourced from development scholar Robert Chambers definition, present in development theorist Ian Scoones discussion of the term: "A livelihood comprises the capabilities, assets (including both material and social resources) and activities for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks, maintain or enhance its capabilities and assets, while not undermining the natural resource base". By stressing the importance of local livelihoods, FLO inscribes itself in what Scoones sees as a growing trend of development theory that focuses less intensively on economic growth, and more on issues of local values and resilience.
In the policy document "Theory of Change and Indicators", FLO outlines a focus on 1) empowerment and 2) maintaining sustainable livelihoods in regards to creating social development on the FLO-certified coffee production site. Furthermore it explicits the scientific background of their understanding of these terms:
1) Empowerment
FLO's definition of empowerment stems from a World Bank report on poverty prevention and empowerment: "the expansion of assets and capabilities of people to participate in, negotiate with, influence, control and hold accountable the institutions that affect their lives'.
The World Bank report further stresses that improving empowerment is depending upon "political, institutional, cultural, and social contexts" in the given locality. Hence it concludes that there is no single model for empowerment. FLO adopts this point into it's theory of change, and "recognizes that Fairtrade can have unexpected or unintended consequences, both positive and negative".
2) Sustainable livelihoods
The notion of sustainable livelihoods is sourced from development scholar Robert Chambers definition, present in development theorist Ian Scoones discussion of the term: "A livelihood comprises the capabilities, assets (including both material and social resources) and activities for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks, maintain or enhance its capabilities and assets, while not undermining the natural resource base". By stressing the importance of local livelihoods, FLO inscribes itself in what Scoones sees as a growing trend of development theory that focuses less intensively on economic growth, and more on issues of local values and resilience.
ECONOMIC EXPERTISE
FLO considers economic development part of the joint path towards sustainable livelihoods. Part of assuring economic development is by offering the Fairtrade minimum price and Fairtrade premium. The graph shows us how the Fairtrade minimum price follows the market price when this is higher than 121 cents/lb + 5 cent/lb premium. When the market price is lower the Fairtrade minimum price is sustained. The minimum price is set so that producers can cover their basic production costs, no matter what.
A Fairtrade minimum price is set according to product, region, stakeholder analysis and an assessment of what issues might occur if the minimum price is changed. Research underlining the decision is undertaken internally by the FLO Pricing Team or externally by the national fairtrade organization under supervision of the Pricing Team. The research is done by investigating costs of sustainable production for the producers and collecting background information from internal and external sources on the area and product. At times FLO-Cert is involved if the Pricing Team is unsure if a new minimum price is in compliance with existing standards. This follows a consultation and then a approval phase, before the new minimum price is implemented.
ENVIRONMENTAL EXPERTISE
In regards to what substances a FLO-certified product is allowed to contain, FLO refers to a list of substances that are either prohibited or under prohibition evaluation by numerous scientific institutions. The list is divided into a red and an amber section; the red list refers to prohibited substances and the amber list refers to the substances under chemical evaluation.
The main institutions referred to are the NGO Pesticide Action Network (PAN) and the Stockholm Convention of Persistent Organic Pollutants (POP).
LEGISLATIVE EXPERTISE
The standards of FLO underlines that standards must comply with local laws and the UN's Human Rights. Hence, the standards for minimum wage, labour right, child labour and discrimination all refer to these set of laws. In case of a discrepancy between these sets of laws, standards must comply with the highest level of legislation, being the UN Human Rights in this case. In addition, the standards have more arbitrary laws; for example the demand that small producer organisations must have workers committee; a so called joint body.
FLO considers economic development part of the joint path towards sustainable livelihoods. Part of assuring economic development is by offering the Fairtrade minimum price and Fairtrade premium. The graph shows us how the Fairtrade minimum price follows the market price when this is higher than 121 cents/lb + 5 cent/lb premium. When the market price is lower the Fairtrade minimum price is sustained. The minimum price is set so that producers can cover their basic production costs, no matter what.
A Fairtrade minimum price is set according to product, region, stakeholder analysis and an assessment of what issues might occur if the minimum price is changed. Research underlining the decision is undertaken internally by the FLO Pricing Team or externally by the national fairtrade organization under supervision of the Pricing Team. The research is done by investigating costs of sustainable production for the producers and collecting background information from internal and external sources on the area and product. At times FLO-Cert is involved if the Pricing Team is unsure if a new minimum price is in compliance with existing standards. This follows a consultation and then a approval phase, before the new minimum price is implemented.
ENVIRONMENTAL EXPERTISE
In regards to what substances a FLO-certified product is allowed to contain, FLO refers to a list of substances that are either prohibited or under prohibition evaluation by numerous scientific institutions. The list is divided into a red and an amber section; the red list refers to prohibited substances and the amber list refers to the substances under chemical evaluation.
The main institutions referred to are the NGO Pesticide Action Network (PAN) and the Stockholm Convention of Persistent Organic Pollutants (POP).
- PAN is an NGO operating worldwide, and FLO take both the research of the European and North American sector of the institution into account in formulating their lists. PAN makes both laboratory and field experiments, using biological and chemical research in investigating how pesticides affect the environment over time.
- POP is a international treaty concerning Persistent Organic Pollutants - pollutants characterised by their high degradation time in water and soil and their low degradation time in human and animal fat, skin and muscle tissue. It's purpose is to protect humans and animals from contact with these resistant pollutants in nature. It investigates the presence of specific pollutants over time by examining everything from animal defection and intestines to soil, sand and water streams.
LEGISLATIVE EXPERTISE
The standards of FLO underlines that standards must comply with local laws and the UN's Human Rights. Hence, the standards for minimum wage, labour right, child labour and discrimination all refer to these set of laws. In case of a discrepancy between these sets of laws, standards must comply with the highest level of legislation, being the UN Human Rights in this case. In addition, the standards have more arbitrary laws; for example the demand that small producer organisations must have workers committee; a so called joint body.