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Discuss the potential impact of Fair Trade on human and economic development - Leaving Cert Geography - Question 15 - 2015
Question 15
Discuss the potential impact of Fair Trade on human and economic development. [80m]
Worked Solution & Example Answer:Discuss the potential impact of Fair Trade on human and economic development - Leaving Cert Geography - Question 15 - 2015
Step 1
Identifying the potential impacts of Fair Trade
Answer
Fair Trade has the potential to positively impact human and economic development by promoting equitable trading practices, improving the living conditions of producers, and fostering sustainable economic growth. Key aspects include:
- Economic Empowerment: Fair Trade can lead to higher prices for producers, allowing them to invest in their communities.
- Social Development: It often includes social premiums that are directed towards community projects, such as education and healthcare.
- Environmental Sustainability: Fair Trade encourages sustainable farming practices, which can have a long-term positive impact on both the environment and the economy.
Step 2
Discussion of Fair Trade's economic impacts
Answer
Economically, Fair Trade supports small-scale producers by providing them with access to international markets. This reduces dependency on volatile local markets and fosters economic stability. Additionally, higher incomes allow producers to invest in better farming techniques and diversify their production. It also encourages cooperative business models, which provide further economic security through shared resources and collective bargaining.
Step 3
Discussion of Fair Trade's human impacts
Answer
On a human level, Fair Trade significantly improves the welfare of producers and their families. By ensuring fair wages and ethical working conditions, it uplifts communities and enhances social standards. It also promotes gender equality by empowering women within these communities. Access to education and healthcare through social premiums further contributes to improved quality of life.
Step 4
Overall coherence and critical perspective
Answer
While Fair Trade presents many benefits, it is important to acknowledge limitations and challenges. For example, Fair Trade certification can be costly for small producers. Moreover, the demand for Fair Trade products is still niche, which may limit widespread economic impact. Each Fair Trade initiative should be critically assessed for its effectiveness in balancing economic gains with sustainable development goals.