Economic Find: Fair Trade and Funds for Economic Development, 1998-2010
Fair Trade producer organizations earn a premium on their sales that is earmarked for community development projects. This graph shows the dramatic increase in these premium payments from Fair Trade in the U.S. alone. In 2010, producer organizations invested over $14 million in development projects.
Fair Trade standards require that cooperative members or workers collectively decide how to invest premium monies earned. Some of the projects that the 330 producer organization members voted for included building schools, funding scholarships, finding ways to be environmentally sustainable, improving businesses, providing health care and financing micro-credit programs.
Created by CPE Member Economist Emily Kawano
Source: Fair Trade Almanac 2010, http://www.fairtradeusa.org/sites/default/files/Almanac%202010_0.pdf