Global Economy

Tuesday 14 December 2010

AS Macroeconomics: Fair Trade and Infrastructure

Fair Trade and Infrastructure

Fair Trade schemes pay a fair wage to the producers of commodities, such as this peanut farmer. While he has benefited from the increase in income and technical support, his biggest challenge are the high transport costs. His crop needs to be transported on poor quality congested roads which takes a long time. The delays mean transport is very expensive, making East African farmers less competitive compared with those with a good transport network.

Joining up Africa: transport links and Fairtrade from UK DFID on Vimeo.

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