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How do ethical and fair trade schemes affect poor producers? Do we need a new 'Good for Development' label?

Written by Jodie Keane

Consumers in the developed world want to use their purchasing power to help people in poor countries lift themselves out of poverty, resulting in the huge growth in ethical trade initiatives seen in recent years. A recent ODI study reviewed a number of existing ethical standards and labels in terms of their objectives, scope and scale of their coverage, their impact on participating farmers, compliance costs and broader development impacts. We conclude that the time is ripe for a new 'Good for Development' label and some new thinking in this area.