Unpacking Fair Trade Practices: Economic Marginalisation

With the start of the new year, we are launching a new series to show what we think are good business practices and what we consider inspiring examples! This series delves into the core of our work: our 10 Fair Trade Principles which, when taken holistically as we envision, provide a roadmap to systemic change in trading systems. 

We’ll start this first insight by looking at Principle 1, exploring how it works in theory (and in practice!), and how it is integrated within a business model, in harmony with the rest of our 10 Fair Trade Principles.  

What is Principle 1? 
WFTO Fair Trade Principle 1 is all about “Creating Opportunities for Economically Marginalised Producers”, which underscores the interest in working closely with individuals and communities facing economic marginalisation. By emphasising inclusivity and social equity, WFTO-Guaranteed Fair Trade Enterprises work with local producers, often marginalised due to poverty, racism, bias or lack of access to resources and other market opportunities. Through the implementation of fair wages, sustainable business relationships, and support for local communities, this principle seeks to embed inclusivity as a core foundation of a Fair Trade Enterprise.

What is “economic marginalisation” and who is affected by it? 
Economic marginalisation is a complex and pervasive issue that affects individuals, communities and/or sectors worldwide, and it is important to note that this is not limited to any specific geographic region. Due to colonial history and exploitative practices that still persist in our global economic systems, the Global South Enterprises are facing significant challenges and disparities that are often linked to economic marginalisation. The legacies of colonisation, resource extraction, and unfavourable trade policies have contributed to ongoing struggles for fair representation of their businesses in our current global economy.However, while discussions on economic marginalisation often rightfully centre on southern producers, it’s essential to recognise that disparities also persist among northern producers.  Our commitment to addressing economic marginalisation extends beyond geographical boundaries, acknowledging that there are individuals, communities and sectors struggling to access opportunities everywhere.

By broadening our understanding of economic inclusivity, we can consider Fair Trade practices simply as “good production and trading practices” that should be applied on a global level to work towards sustainability (in practices, wages, products, and most importantly: business models). 

Does that mean that Fair Trade is mostly about “helping” people? 
Historically, Fair Trade emerged as a movement of restorative justice in response to the exploitative trade practices that disadvantaged small-scale farmers and artisans in countries in the Global South were experiencing as a result of colonialism. Fighting for justice goes far beyond ‘helping” people and the WFTO movement always addressed broader global challenges. Fair Trade Enterprises’ approach to business is about co-creating a global movement founded on the idea that businesses can be a force for change when they balance their social purpose, the protection of the environment and profit making. 

Here you can read about 4 different cases from our global community that we were inspired by. 

Let’s have a look at some of them!

Economically-marginalised producers from a Roma community

DECE (S.C. Networks Trading Srl) 📍 Romania
In 2009, where the Hungarian plain meets the Zarand mountains in the West of Romania, a transformative initiative began in a Roma community in the village of Siria, with wool and a crochet needle. A simple idea developed into DECE, a WFTO Fair Trade Enterprise, which is seeking to develop solutions to end the generational cycles of poverty in Roma communities in the region. 

In many such communities, poor housing, high school delinquency and dropout rates coupled with widespread discrimination, hinder legal employment opportunities for Roma people. DECE seeks to change this narrative by providing meaningful work to individuals who have often faced systemic barriers. Their collection of apple leather bags, backpacks (made out of re-purposed truck covers) and organic cotton headwear is the product of this collaborative effort. 

Beyond its economic impact, DECE’s involvement in holistic community development reflects a commitment to addressing the multifaceted challenges faced by employees in difficult circumstances. Understanding that a thriving community extends beyond the workplace, DECE’s initiatives encompass a wide range of programs, which include crisis support, playschools, homework clubs, high school scholarships and health programs providing crucial pre- and post-natal care. DECE also works with communities by assisting them in producing their food through initiatives such as providing seeds, and plants, and building greenhouses.

Economically-marginalised producers from a Madagascar showing black women working in the fashion sector

Akanjo 📍 Madagascar
Since 1998, the WFTO-Guaranteed Fair Trade Enterprise AKANJO, based in Antananarivo, has been embroidering and manufacturing products for luxury ready-to-wear and haute couture. This close collaboration with famous fashion houses (including among them the world-famous French luxury brand Chloé) has cultivated the desire to always go further, and to constantly acquire new know-how. 

Faced with the dual challenge of the absence of local qualifying training and the prevalent issues of destitution, unemployment, and low qualification levels in neighbouring districts, AKANJO’s mission goes beyond simple recruitment. Their focus is on integration and training for young women, who often do not have access to the job market due to societal norms and limited educational opportunities

This Fair Trade Enterprise offers accessible employment with structured career plans and fair wages, providing a meaningful avenue for personal and professional growth. This vision has been ingrained in the company since its inception, evident in minimum salaries that are 2.5 times higher than the national minimum wage, substantial benefits, and a robust training policy. Employees are provided with opportunities to evolve into different positions or functions within the company.

Today, AKANJO employs more than 4.600 people, 90% of whom are women without formal education, with little to no access to the local job market. 

Girolomoni 📍 Italy
Girolomoni started as a small organic farm in the Marche region, but today, it is more than a supply chain to produce and retail organic pasta: it is a cooperative with a holistic approach to sustainability, involving more than 400 farms producing 100% Italian organic wheat.

This Fair Trade Enterprise began with the dream of its founder, Gino Girolomoni, who believed that an economic model that is socially, environmentally, and culturally sustainable could exist. Witnessing a rapid increase in rural-to-urban migration, with people leaving the countryside to work in nearby cities, Girolomoni’s focus has been, since the beginning, on how to restore value and dignity to the land and the farmers. Having experienced first-hand the hardships of farming life in economically marginalised areas of the Italian countryside, he decided to focus on bringing positive local impact to the family-farms of the regions, reinvesting profits into the community and prioritising ethical and organic farming practices, so as to revitalise the rural areas that were grappling with economic hardships and depopulation.

Economically-marginalised farmers producing organic pasta

How do they achieve this?
– They offer the producers working with them long-term contracts, establishing a commitment to stability and reliability in the agricultural sector. These agreements provide farmers with a sense of security, allowing them to plan for the future with confidence.
– They adopt organic farming and agroforestry as the key founding values, which go beyond mere production methods; they embody a holistic approach to farming that respects the interconnectedness of environmental, social, and economic factors. Through the adoption of organic farming and agroforestry, the Fair Trade Enterprise not only produces high-quality organic wheat but also actively contributes to the long-term health and vitality of the regions where they operate.
– They choose to pay above-market prices and fair wages, to address economic inequalities in the agricultural sector, ensuring that farmers receive remuneration that reflects the true value of their work.
– They provide technical support and training through our staff and specialised technicians, showing commitment to continuous improvement aligns with the enterprise’s holistic approach, ensuring that the producers have the tools and expertise needed to navigate challenges and adapt to evolving agricultural practices.

Artisan Links 📍 Pakistan
Artisan Links is a WFTO-guaranteed Fair Trade business that works with a women-led group of artisans experiencing displacement in Pakistan. Refugees are economically marginalised as they face numerous challenges, including limited access to formal employment opportunities and financial resources. Artisan Links aims to address this by providing women artisans with sustainable employment opportunities, fair wages, and a platform to showcase their skills and craftsmanship. 

Economically-marginalised producers who are refugees

Using our 10 Fair Trade principles as a roadmap for change, Artisan Links collaborates with a workforce of more than 850 artisans, from the North to the South of the country:

  • 70% of the artisans are Afghan Refugee women
  • 20% of the artisans are marginalised Pakistan women 
  • 4% of the artisans are Afghani living in the bordering town of Jalalabad, Afghanistan. This four per cent of women repatriated to Afghanistan many years back but found it hard to find work in their hometown.

The refugee artists working under the umbrella of Artisan Links mostly reside in the rural areas of Khyber Pakhtunkhwa Province, some in Baluchistan Province and a few in Sindh Province. Artisan Links ensures that work is conveniently brought to the artisans’ doorsteps, considering the challenges they may face in travelling to their main office. With its mobile team, consisting of two supervisors, Artisan Links visits the artisans, distributes the work, collects the finished pieces, and provides immediate payment on-site. Alternatively, they use local money transfer facilities for payment and local freight forwarders for the seamless delivery and collection of the products, an approach that reflects their commitment to making the process accessible and efficient for the artisans.

Economically-marginalised producers from a indigenous community

Fundación Sinchi Sacha📍 Ecuador
Fundación Sinchi Sacha is a WFTO Guaranteed Fair Trade Enterprise based in Ecuador, dedicated to working with economically marginalised artisans for over 30 years. The organisation’s name, Sinchi Sacha, translates to “powerful forest” in Quichua, reflecting the cultural and natural diversity of the Amazonian tropical rainforest. 

This Fair Trade Enterprise focuses on supporting indigenous communities, particularly marginalised women artisans. The Kichwa Amazon women of Ecuador possess a rich heritage, passed down from mothers to daughters for generations. Their artistic expressions include mukawas (ceramic bowls) and supai (sculptures personifying elements of the rainforest), created using traditional ceramist techniques for modelling and painting. In an effort to preserve this cultural legacy, the Sinchi Sacha Foundation is even spearheading a campaign to showcase the art of these Kichwa Amazon women. 

Indigenous women in Ecuador face unique challenges arising from economic marginalisation, which the enterprise aims to address, yet this doesn’t stop them but fuels their determination to thrive. Fundación Sinchi Sacha creates opportunities for women artisans of the region, and together with them showcases the beauty of their art to a global audience. The women artisans of Fundación Sinchi Sacha in Ecuador are not only crafting art; they are taking their lives into their own hands, shaping a narrative of empowerment and resilience. In the face of economic marginalisation, they refuse to be defined by limitations; instead, they seize control of their lives with determination.

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WFTO Membership & Associate Types

  • Fair Trade Organisations (FTO)

    All trading members of WFTO. This includes all organisations that have more than half of their income and/or more than €100,000 in income from trade.

  • Fair Trade Support Organisations (FTSO)

    An organisation whose primary mission is to support Fair Trade and/or provide services to organisations that are or want to become Fair Trade Organisations.

  • Fair Trade Networks (FTN)

    An organisation which is an association of organisations committed to Fair Trade.

  • Individual Associates (IA)

    Individual Associates are supporters of the Fair Trade movement with limited rights. The WFTO Guarantee System does not apply to them.

  • Associate Organisations (AO)

    Associate Organisations align with WFTO’s values but after their application. They do not undergo monitoring and also have limited rights.

WFTO Guarantee System Monitoring Statuses

  • Candidates

    Candidates have been conditionally approved for membership but have not completed their first monitoring cycle under the WFTO Guarantee System. They have limited rights within WFTO. They may not use the WFTO Member Mark and Product Label or claim that they are monitored by WFTO.

  • Guaranteed Members

    Guaranteed members have met the WFTO Membership requirements and are monitored under the WFTO Guarantee System.

  • Member

    Organisations that have no or little income from trade go through a reduced version of the WFTO Guarantee System that does not include criteria related to trade. These organisations may use the WFTO Member Mark but cannot use the Product Label for any products they may be trading to support their mission. This status only applies to Fair Trade Networks (FTN) and Support Organisations (FTSO).

  • Renewal in Progress

    Members who are in the process of renewing their guaranteed status and are overdue on some requirements retain full rights while they work to meet the demands of the Guarantee System on an administrative or compliance level.

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Collaboration is key to successful transformation, meaningful impact, and our movement

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WHO CAN APPLY

WFTO welcomes applications from established Fair Trade Organisations as well as organisations that support Fair Trade. Individuals in their capacity as researchers, writers, consultants and specialists in their field who can contribute solid skills, knowledge and expertise to WFTO and members are also welcome.

Add Your Heading Text Initial requirements for organisations:

  • Compliance with the WFTO 10 Principles of Fair Trade. Please have a look at the WFTO Fair Trade Standard for more specific information on compliance with these principles.

  • All applicant organisations must already be duly registered (as a legal entity) and active for at least one year.

Who can apply?

  • Fair Trade Organisations (FTO)

    All companies, partnerships, co-partnerships and other legal bodies – as determined by the legal provisions of the country of the member concerned – that are directly engaged in Fair Trade. They may be producers or northern or southern based trading FTOs for whom Fair Trade is the main activity. To qualify for FTO membership, income from sales (turnover) must account for 50% or more of the total income. Applications for FTO membership cannot be accepted from organisations with no prior sales history.

  • Fair Trade Networks (FTN)

    Legal entities whose primary function is to serve as national or international associations of Fair Trade producers and/or Fair Trade Organisations.

  • Fair Trade Support Organisations (FTSO)

    Fair Trade Organisations where trading is not the main activity (proportion of trade is less than 50% of total income). These organisations are engaged in Fair Trade indirectly, through activities that promote and support Fair Trade. These activities can include business counselling, finance, advocacy or networking.

  • Associate Organisations

    This is a special category for national or international organisations that are interested in supporting and promoting Fair Trade, including donor organisations. Organisations that do not meet the one-year legal existence requirement also fit in this group.

  • Individual Associates

    Individual researchers, writers, consultants and specialists in their field that can support WFTO. WFTO expects its individual associates to be active Fair Trade supporters whose experience and expertise in their own particular field can be of practical benefit to WFTO's members. To apply, please submit a curriculum vitae.

    While FTO, FTN and FTSO are entitled to full WFTO membership, organizational and individual associates have only limited rights.

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OUR PRODUCT LABEL

The WFTO Product Label is more than just a Fair Trade symbol. It signifies not only that the practices across the supply chain are checked against the WFTO Fair Trade Standard, but it also represents support to the battle against poverty and inequality. Products carrying the WFTO Label are made and traded by Guaranteed Fair Trade Organisations dedicated to the sustainable Fair Trade economy. Every purchase of products with the WFTO Label supports small producers and their communities.

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