Ch.

10 Development
Key Issue 4: Why Are Countries Making Progress in Development?
Rubenstein, p.376-379

I. FAIR TRADE STANDARDS

1. Define and take notes on fair trade:

international trade that provides greater equity to workers, small businesses, and consumers.

Overall goals –

focuses primarily on products exported from developing countries to developed countries. Sustainability is
promoted by offering better trading and working conditions for producers and workers in developing countries. Fair
trade organizations, backed by consumers, raise awareness of deficiencies in conventional international production
and trade and the role of fair trade in improving economic, social, and environmental conditions for producers and
workers.

Fair Trade for Producers –

Raising the incomes of small-scale farmers and artisans by eliminating some of the intermediaries. Distributing the
profits and risks associated with production and sale of goods more fairly among producers, distributors, retailers,
and financiers. Increasing the entrepreneurial and management skills of the producers.

Fair Trade for Workers –

Protection of workers’ rights is not a high priority in the international trade development approach

Oversight of workers’ conditions by governments and international lending agencies is minimal. Workers allegedly
work long hours in poor conditions for low pay. Children or forced labor may be in the workforce. Health problems
may result from poor sanitation and injuries from inadequate safety precautions. Injured, ill, or laid-off workers are
not compensated.

Cooperative farm –
A cooperative can qualify for credit so that funds can be borrowed to buy equipment and invest in improving farms.
Materials can be purchased at a lower cost. The people who grow or make the products democratically manage
allocation of resources and assure safe and healthy working conditions. Profits are reinvested in the community
instead of going to absentee corporate owners.
 Fair Trade for Consumers –
is a member-owned, member- governed business that operates for the benefit of its members according to common
principles agreed upon by the international cooperative community

Cooperative store – a member-owned, member- governed business that operates for the benefit of its
members according to common principles agreed upon by the international cooperative community

2. What led to the most recent cooperative store movement?

People who didn't want to work in other corporations started their own businesses.

II. MEASURING PROGRESS

3. Summarize the progress made in the HDI and each of its components:

HDI – increased more rapidly in developing regions than in developed ones

GNI per capita – Since 1980, GNI per capita has increased much more rapidly in developed countries than in
developing countries

Education – Since 1980, GNI per capita has increased much more rapidly in developed countries than in developing
countries
 Life expectancy – Since 1980, GNI per capita has increased much more rapidly in developed countries than in
developing countries

4. What are the Sustainability Goals? (You don’t have to list them, just what are they?)

The Sustainability Goals are goals made to help reduce the disparities between developed and developing countries.