The Impact of Fair Trade on Social and Economic Development: A Review of the Literature

Abstract

This article explores the outcomes of Fair Trade for producers, artisans and their organisations. It asks the question, ‘what happens to people who are involved in Fair Trade?’, and reviews the case studies and empirical research conducted on Fair Trade for a range of products in different countries. The article is organised around important aspects of development which Fair Trade seeks to influence, including market relations, institutional development, economic development and reductions in poverty, social development, gender equity and sustainable development. The outcomes are diverse and complex, though, most studies found significant impact on social and economic aspects of development, contributing to the capacity to improve and diversify livelihoods. Fostering sustainable commercial organisations is an important contribution of Fair Trade networks. However, there appears to be less success in achieving gender equality and dealing with issues of importance to women. Both the enactment of partnership and the achievement of development goals require continuous commitment, a variety of strategies and cooperation with other actors, such as government and non-governmental organisations.