The Fairtrade Access Fund: does linking ethical investment with Fairtrade certification enhance credit outcomes for small farmers?
Date
2017
Authors
Weeks, Nefratiri, author
Raynolds, Laura, advisor
Lacy, Michael G., committee member
Bernasek, Alexandra, committee member
Journal Title
Journal ISSN
Volume Title
Abstract
The Fairtrade Access Fund is a new ethical investment fund established to work with smallholder farmer cooperatives certified or becoming certified by Fairtrade International. How does the Fairtrade Access Fund fit in with current financing schemes in the developing world? Does the Fairtrade Access Fund's connection with Fairtrade International certification and ethical finance standards enhance the important positive aspects of credit access for smallholder farmers? Does the connection with Fairtrade Standards mitigate the potential risks inherent in debt finance? My study employs an economic sociology and political economy theoretical framework. It traces the certification requirements of Fairtrade International and analyzes how they intersect with the key institutions of ethical finance in order to answer the main research questions. The research includes information on both investors and recipients of the Fairtrade Access Fund and evaluates whether the fund differs from current forms of finance already available to some smallholder farmers. In sum, my findings indicate that linking ethical finance with Fairtrade certification schemes does enhance credit outcomes for smallholder farmers. Further, Fairtrade certification works as an important mechanism of risk management for ethical lending institutions.
Description
Rights Access
Subject
credit
ethical investment
smallholder farmers
development
agriculture
fair trade