Trade facilitation — including implementation of the WTO Trade Facilitation Agreement — as well as tackling other policy and infrastructure barriers to goods and services trade are critical to growth and poverty reduction.
Improving the enabling environment. Trade openness itself and lowering trade costs is essential for delivering gains for the poor. A range of complementary policies helps maximize the gains of openness for the poor — including policies related to human and physical capital, access to finance, governance and institutions and macroeconomic stability.
Strengthening the enabling environment can be done through innovative policy frameworks that improve consultation with the poor, and target their needs more carefully. To achieve this will require deeper cooperation across sectors, better coordination across government ministries and agencies and that a wider range of stakeholders work effectively together.
Intensifying the poverty impact of integration policies. Bringing a greater focus on tackling remoteness from markets at the sub-national level, and facilitating the activities of poor and small traders, can help improve gains for the poor, especially in rural areas.
This also entails reforms to tackle costs generated by a lack of competition, and other sources of domestic costs. Promoting greater inclusiveness of women, and targeting the challenges they face as distinct from men, is central to efforts to intensify the poverty impact of integration policies. Managing and mitigating risks faced by the poor. More focus is needed on managing the existing risks that poor people face that limit them from benefiting from trade opportunities when they arise.
Addressing any potential risks to livelihoods for the poor through trade-related adjustments is also important. Improving data and analysis to inform policy. The gaps in understanding of poverty, the nature of the informal economy, the participation of women in trade, and of the trade-related constraints in general that many countries face continue to be large.
It provides supplies, scholarship programs and healthy meals. Fair Trade enables education for even the most outlying communities. Fair Trade impacts workers, farmers and families. Farmers can receive market-based tools to prevent them from falling into poverty and may learn environmentally sustainable practices.
Workers and families gain access to doctors, treatments and nutrition. These benefits enable people to help themselves as well as others in their communities. Fair Trade is a model for alleviating global poverty.
Poverty is one of the greatest challenges in the world today. While these figures have improved over the last two decades, there is clearly still much work to do. Many of the farmers and workers who produce our favourite products like coffee, cocoa, and bananas live below or close to the poverty line and are vulnerable to price fluctuations, climate change and dishonest buyers.
Extreme social inequality and lack of access to resources such as education, land or credit mean they are often stuck in a vicious cycle of debt and poverty, and forced into exploitative employment, or into sending their children to work. These voices are now galvanised to challenge the Fair Trade movement to go further in the fight to save our planet. The circular economy is all the rage in Fair Trade.
In India and Sri Lanka, they are working with waste-picker groups to recycle plastic to make new bags, sunglasses, belt-buckles and bottles including through a partnership with WFTO Associate, Body Shop.
Others across South Asia are turning discarded saris into new fashion items. While in Tanzania, Fair Trade Enterprises are cleaning up the beaches of Zanzibar to create furnishings and accessories, and helping refugees turn food sacks into baskets.
For years, these social enterprises did upcycling and recycling to simply clean up their neighbourhoods. They wanted clean streets and beaches so the children of artisans and workers could play.
The Fair Trade movement is working hard to spread these ideas, scale-up efforts and accelerate innovations. Fashion is where the most potential was found, but eco-friendly packaging for all products is growing across Fair Trade. The enterprises with on-trend product designs and savvy marketing are seeing growth in circular product lines.
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