By Nan King, Smitha Mundasad and Paul Rodgers
Welcome to Fair Trade week at City University. This vodcast introduces us to City’s ambitions to become a Fair Trade university and gives us a peek into what City students actually think of fair trading.
By Nan King, Smitha Mundasad and Paul Rodgers
Welcome to Fair Trade week at City University. This vodcast introduces us to City’s ambitions to become a Fair Trade university and gives us a peek into what City students actually think of fair trading.
By Charlotte King and Laura Husband
The ‘Food in the City’ project based at City University, Islington, plans to grow food on a derelict site in the centre of London by Summer 2010.
Laura Husband and Charlotte King speak to one of the project’s organisers, Imogen Riley to find out how it’s going to work.
But will it be safe to eat fruit and vegetables grown in a polluted city?
Professor of environmental pollution, Nigel Bell from Imperial College London gives his expert opinion on how pollution will affect the food and whether he’d personally choose to eat it.
“I want to save lives and help people” is the one phrase that thousands of hopefuls have been told not to say at an interview for a place at medical school. This answer is deemed to be too idealistic, and too superficial. Medicine has a lot of challenges; it is not about the chummy hilarity of Scrubs, or the steamy store-cupboard romance of Casualty. But it is about doing more good than harm… right?
Over the last few weeks, more than one million NHS employees have had to face a difficult fact. Sometimes, in the very act of saving a life, they are endangering someone else’s.
Young children around the world are working in sweatshops to make the surgical instruments that are used in our operating theatres, according to Mahmood Bhutta, a surgeon in Oxford.
“There is evidence that children as young as seven are risking their lives to supply us with equipment to save British lives” he said.
During his honeymoon, on a stopover in Pakistan, Mr Bhutta was invited to explore Sialkot’s maze of manufacturing workshops. Many of these workshops are the backrooms of small houses.
Making surgical instruments involves forging, filing, grinding and using chemicals such as sulphuric and nitric acid. In England, workers are issued with adequate protective gear. Mr Bhutta, however, saw children and adults working in dangerous environments, without appropriate protection.
“Some of the workers in the developing world who make medical supplies bound for the NHS are exposed to hazardous working conditions where they risk serious injury and even death,” Mr Bhutta said.
He told me that after witnessing these conditions, he spent the next six months grappling with the ethics of doing or not doing something about this situation. For many of the employees this work puts food on the table. And for some children, this is a job that could give them skills for life. Furthermore, in a market that is highly competitive, firms in Pakistan need to keep prices low.
Manufacturers in Pakistan often lack the infrastructure to market or sell their goods directly to the NHS. Middlemen in European countries often buy these goods from Pakistani firms. A substantial mark-up in price is then added, before these instruments are sold to the NHS.
According to an article by Mr Bhutta, which appeared in the British Medical Journal (BMJ) in 2006, “a pair of fine surgical scissors will cost $1.00 to produce, will be exported from Pakistan to Germany at the price of $1.25 and will probably be sold to a hospital for nearer $80.00”. Mr Bhutta was told these figures via personal communication, but as he points out in the article, there has not been a systematic examination of NHS procurement.
Procurement in the NHS is complex – it happens on many levels, from the NHS who negotiates national contracts on products, to independent procurement done by individual hospital trusts.
According to Mr Bhutta, this is not an issue of blame. He told me that when he approached the NHS, they were unaware of these practices.
Finding a solution is difficult. As Mr Bhutta mentions in the BMJ article boycotting these goods would reduce trade in the region and heighten poverty, the very problem that underlies this issue.
Mr Bhutta continues in the article: “the solution lies in purchasers insisting on fair and ethical trade when sourcing instruments. Pressure must be applied to suppliers in the developed world to be transparent about where their instruments have been manufactured and for them to ensure that the labourers have been paid a fair wage for their work and that basic international labour and health and safety standards have been followed”.
In 2007, two years after the honeymoon visit, the British Medical Association and Mr Bhutta set up the Fair and Ethical Medical Trading Initiative. Working with the Department of Health, the NHS Supply Chain, a number of nongovernmental organisations and academics, this group recently produced a set of guidelines for doctors who wish to tackle the issue.
The group is calling on doctors to:
Ask their chief executive to adopt ethical procurement into their institution’s policy
Ask health care suppliers where, and under what conditions, they produce their goods
Form an ethical trade interest group within their institution
Tell others
The NHS Purchasing and Supply Agency, in a partnership with the Ethical Trading Initiative has produced a guide to ethical sourcing in the NHS.
The NHS Supply Chain has also produced guidelines.
With NHS funding cuts threatened in the near future, it is difficult to predict the impact of these guidelines. Bringing change to such an ethically complex situation is likely to take time, care and commitment.
The Medical Fair and Ethical Trade Group is now working to ensure that “this is not just a paper exercise”.
The question is, how will our world-renowned health care system react to this situation? Will the NHS choose to be morally cheap? Or will we stand up and fight for global health?
Bananas are the favourite fruit of Britain. According to 2009 figures from TNS, Brits spend £587 million a year on bananas, and so choosing to buy Fairtrade can actually be a powerful consumer decision.
“You are getting more money back down to the primary producer and less money going to the plantations, that’s a very important choice,” says Professor Tim Lang, a food policy expert at City University London.
As many as one in four bananas on our shelves in the UK is Fairtrade, as certified by the Fairtrade Foundation, with some supermarkets, such as Waitrose and Sainsbury’s selling only these types of bananas. So it has never been easier to get our mitts on these bendy yellow fruit. But how does it work when we buy Fairtrade?
For the customer, it could means a slight increase in price, although currently Sainsbury’s Fairtrade bananas are 17p each, the same as Tesco’s which are not Fairtrade (although they do sell a Fairtrade pack as well, normally working out at 25p each, now on offer for 20p each).
However, it may be worth spending a few pennies more to buy the ethical option. Mike Gidney, the deputy director of the Fairtrade Foundation, tells me that Fairtrade helps banana growers to build a future for themselves. This is because, for small-scale farmers, prices they get from their harvests can fluctuate wildly. The minimum price that the farmers get who are growing Fairtrade bananas get is “a huge lifeline”, he says.
A report conducted by the Natural Resources Institute, University of Greenwich, for the Fairtrade Foundation, reviewed several case studies to determine the impacts of Fairtrade on the producers. The review found that Fairtrade offers farmers greater stability and security, giving them the opportunity to invest in their businesses and grow them.
For example, the Windward Islands in the Caribbean sell 70 per cent of their bananas on a Fairtrade basis. “But what they are doing now,” says Gidney, “which is brilliant, is going out of bananas – and into ecotourism and packaging and processing. This is real step change to them.”
In addition to the stability that a fixed minimum price offers, premiums are paid to Fairtrade producers for community improvement purposes. These are chosen by co-ops of growers. Lang says: “It makes a huge amount of difference as to people’s livelihoods, their health, whether their kids go to school… it’s just vast.” For example, in the Windward Islands, they have spent their premiums on a range health and fair trade projects.
Fairtrade has its detractors, though. Critics from the Adam Smith Institute, a free market think tank, say that fair trade interventions limit the amount of profit that small producers are able to make and sets prices artificially high for the consumer.
One skeptic and writer, Simon Perry, writes that: “Instead of opting for ethically labelled packaging that makes us feel good about ourselves, perhaps we should be doing something that offers a genuine chance of improving the lives of the impoverished – campaigning to eliminate trade barriers and putting an end to farming subsidies.”
However, the free market has too little regulation, as we have recently seen with the banking crisis. Gidney says: “[free] trade is an incredibly uneven playing field, when you think about economies as disparate as the UK’s economy and an economy in Africa, Malawi for example. It is completely crazy to say we can operate on a free trading basis without Malawi being at a substantial disadvantage.”
“There has been 200 years of discussion about free trade. The terms ‘free’ and ‘trade’ sound absolutely wonderful when put together, but the realities are more complicated, we don’t have free trade,” says Lang. He tells me this is because powerful countries and corporations set the terms and conditions of trade.
Only a month ago, the EU lifted its preferential trade agreements to growers in the Caribbean. The Fairtrade Foundation was concerned that, although this had been in the pipeline for some time, there was very little help for Caribbean farmers from the EU, in terms of financial or technical assistance to adjust to the fact their bananas would suddenly be more expensive for retailers to buy. “They are really caught on the hop and saying they really need Fairtrade more than ever, to get the minimum price and the premium,” says Gidney.
There is hypocrisy in the fact that European farmers are subsidised to produce fruit while the counties in the developing world are having their preferential tariffs removed.
Lang couches the fair trade versus free trade debate in strong terms: “To say whether this is a matter of free trade or protectionism completely misses the point. The point is: do you want blood on your bananas or do you want to have some dignity with your bananas?”
In a recent case, a large multi-national company called Chiquita, which is the biggest distributor of the fruits in the US, admitted to funding paramilitary groups to protect their large plantations in Colombia. They paid damages of $25 million.
In the past banana companies have been criticised for creating what are called “banana republics”, which are corrupt collusions between state and corporation, usually occurring when an industry accounts for a large proportion of GDP. For instance, at one time 60 per cent of Honduras’ exports were bananas. The political ramifications can reach far and wide, including the suppression of worker’s rights.
Ethics isn’t just about worker’s rights, however compelling. The magazine Ethical Consumer judges its reviews of products on many criteria, including: environmental impact, political activities and sustainability.
Both Gidney and Lang swerve the question of what the most ethical banana would be, where it would come from. Lang says he thinks there is too much labelling on products and would prefer a single “Good Food” label for products that protect worker’s rights and are nutritious.
Rob Harrison, the editor of Ethical Consumer, says that from a consumer point of view, buying bananas that bear both the Fairtade and the Organic marks is one of the best options if you can find them, as organic farming methods around the world mean that biodiversity is preserved, and workers are not exposed to pesticides. This is reflected in the price, with Fairtrade ‘So Organic’ bananas in Sainsbury’s edging towards 30p each.
But Ethical Consumer’s 2006 report on bananas tips Fairtrade Windward Island bananas as the most ethical, because, Harrison points out, have a particular dependency on this crop and need all the sales they can get. It is possible to buy Caribbean bananas in a range of supermarkets, and these tend to cost around 23p.
So, is it more ethical to buy fairtrade, organic bananas or fairtrade bananas from the Windward Isles? Harrison says: “Both are an ethical choice. It will ultimately be each individual’s call as to whether to prioritise a specific development goal (Windward Islands) over a general raising of production standards towards sustainability.”
In terms of carbon footprint, as we are not able to grow bananas in the UK, they have to be shipped in from Latin America or the Caribbean. There’s no way around the fact that our nation’s favourite fruit has high carbon emission collateral. One American journalist calculated that gobbling a banana every day would eat up nearly half of personal CO2 footprint targets as set out on the website Eat Low Carbon Diet.
To solve that particular problem means buying local fruit, such as apples and pears, instead of bananas. But if you are hooked on the curvy yellow fruit, as many of us are, take comfort from the Fairtrade and Organic marks or Windward Isle labelling to know you are supporting small-scale growers in the developing world.
By Smitha Peter and Aine Gormley
According to the Fairtrade Foundation, one third of Fairtrade products are also organic. These organic Fairtrade products are often more expensive than non-organic Fairtrade products. Research has shown the organic Fairtrade label to positively impact the perceived quality of the products.
Does the fact that price premiums are given to Fairtrade farmers for organic production (because of the environmental benefits) justify the Fairtrade Foundation to stamp the double label and bump up the price?
“Fairtrade is about fairer terms of trade for producers to affluent markets – it is not about environmental standards per se,” according to Dr David Barling, Reader in Food Policy at City University London.
“Agri-chemicals are part of conventional agricultural production systems – as long as the chemicals are not banned in the importing countries,” Dr Barling added.
The research conducted by Dr Didier Tagbata at University of Valencia suggested that although the double label enhanced perception of the product, people are not ready to pay more for organic and fair trade products. Dr Tagbata warned that markets for these two products must not be overestimated.
Martin Caraher, a Professor in Food and Health Policy at City University London, agrees that most people will only buy the double-labelled product if the price is no higher than the non-organic Fairtrade product.
“If you’ve got a Fairtrade product, and another one that is Fairtrade and organic, which is more expensive, in nine cases out of ten fairtrade only product will win out.” Prof Caraher said.
He added that, “People tend to trade off psychologically about Fairtrade. It makes them feel better by paying a couple of pence for the Fairtrade product. It is an interesting link. Consumers are consuming Fairtrade rather than Fairtrade being a part of each and every product.”
But Dr Tagbata claims that generalisations cannot be made as only 50 per cent of the customers studied linked Fairtrade and organic products to social and environmental concerns.
“The results should be checked on representatives in several countries,” Dr Tagbata said.
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