Showing posts with label Free Trade. Show all posts
Showing posts with label Free Trade. Show all posts

October 6, 2013

Fair Trade Principles Are Cool

So I was up in Harpers Ferry and discovered this cool boutique store called Tenfold

The store carries a collection of creative "fair trade," eco-friendly products from around the world. 

They had a cool variety of clothing and accessories--that was different and special. 

We all found something there to come back with and had to choose what we liked best. 

I ended up getting a couple of handmade ties from a company called Global Mamas in Ghana and the girls got some skirts (and necklaces) made by Unique Batik in Thailand. 

I liked the quality and design of the merchandise. 

But more than that, I was truly impressed by the principles these companies adhere to under fair trade:

- Alleviate poverty and social injustice
- Support open, fair, and respectful relationships between producers and customers
- Develop producers' skills, and foster access to markets, application of best practices, and independence, 
- Promote economic justice by improving living standards, health, education, and the distribution of power
- Pay promptly and fairly
- Support safe working conditions
- Protect children's rights
- Cultivate sustainable practices
- Respect cultural diversity

Note: Fair trade is not to be confused with free trade--the later being where government does not interfere with imports or exports by applying tariffs, subsidies, or quotas.

Truly, if we give people a chance to be productive under fair trade working conditions, they can make the world a little better one product at a time. ;-)

(Source Photo: Andy Blumenthal)

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February 15, 2008

“Fair Trade or Free Trade” and Enterprise Architecture

What is the way ahead for free trade—further globalization and lost jobs for U.S. workers or isolationism and protectionism?

Fortune Magazine, 4 February 2008 reports that “economic anxiety has inspired a backlash against free trade…in the great game of global trade, Americans are increasingly feeling like the losers.”

How did we get to this advanced state of global trade?

Americans led the works in building a roadmap for global commerce during the 1990’s” with the North American Free Trade Agreement (NAFTA) “linking the U.S., Canada, and Mexico to create the world’s largest trade bloc.”

Why are Americans reeling from free trade?

68% of those surveyed say America’s trading partners are benefiting the most from free trade, not the U.S. The sense of victimhood is changing America’s attitude about doing business with the world. We are a nation crawling into a fetal position, cramped by fear. That America has lost control of its destiny in a fiercely competitive global economy. The fear is mostly about jobs lost overseas and wages capped by foreign competition. But it is also fueled by lead-painted toys from China and border-hopping workers from Mexico, by the housing and credit crisis at home, and by the residue of vulnerability left by 9/11 and the wars that followed.”

We are turning inward. Especially now, as the U.S. economy sputters…median household income in 2006, at $48,201 was barely ahead of where it was eight years earlier. So the prospect of a recession has made the anxious middle class even more so.”

“Most analysts agree that the underlying reason for public anxiety over globalization is the visibility of factory closings and the stagnation of income.

What is the result of the backlash against free trade?

“Today, nearly two-thirds of Americans are willing to pay higher prices to keep down foreign competition.”

With the upcoming presidential election, “the Democratic mantra is now, ‘fair trade, not free trade.’”

“Most Democratic leaders insist they don’t want to, nor believe they can, halt the global flow of commerce. Where they hope to connect with voters is by promising to strengthen the safety net.” This includes special training programs, tax incentives for companies to relocate to where workers have lost jobs, and expanding unemployment benefits.

I agree that we cannot retrench into isolationism, although a little protectionism sounds about right and fair. We need to architect our nation’s role in global trade, so that we are not running huge trade deficits, losing valuable jobs to overseas workers, and buying shoddy products from overseas.

Enterprise architecture is about identifying the baseline and setting a target and transition plan. Well the current baseline, as outlined, is ruinous for the U.S. economy. The target is clearly a more strategic trade policy that protects our vital economic industries, interests, and workers. And the transition plan is to establish the laws and policies to change our wayward direction and quickly.

Finally, businesses must look beyond the quarterly financial statements and daily stock prices of their companies and instead establish longer-term targets that focus on retaining strategic assets and know-how at home here in the U.S., rather than trade it away for a quick buck on the quarterly income statement.


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