In the spotlight with Paul Chandler, Traidcraft
Paul Chandler, Chief Executive at Traidcraft, reflects on the rise of fair trade and argues that although gains have been made, more needs to be done to get big business and governments to change trade policy and practice.
What does Traidcraft do?
Traidcraft practises and promotes approaches to trade that help poor people in developing countries transform their lives. We are the UK’s leading fair trade organisation and one of the early pioneers of fair trade worldwide. Our turnover is in excess of £20 million and we work with producers from more than 30 countries. Our dual identity, as a trading company and as a development agency, gives us a unique perspective and helps us to have influence with policymakers and decision-makers. We are a real innovator in pushing forward the boundaries of fair trade. Established as a Christian response to poverty, we also mobilise the Christian community on issues of trade justice.
Why do you want to be part of the organisation?
I am very passionate about the potential that trade has to create sustainable improvements in poor people’s livelihoods. It’s not just about blowing the whistle on how big company practices can cause exploitation and damage in the developing world; it’s also about harnessing the creative potential and expertise of business for lasting change. I am very excited that fair trade and Traidcraft utilises the consumer power of ordinary individuals to change the way companies think about their business and governments think about business regulation.
What are you are working on at the moment?
We have just finished a major strategic review of our activities and one of the findings was the need for a more robust monitoring and evaluation system to improve the scale and quality of our impact. We want a greater understanding of how we engage with producers around the world, not only to provide higher and more sustainable incomes but also to develop communities and help people to fulfil their potential. Although we have made positive impacts in these areas, we haven’t been able to monitor and measure it as much as we would like to. The other big emphasis is the need for more innovation within the trade and development arena. To support this we want to harness the synergies between our trading company and development charity so that we can maximise the potential for both.
What are your views on the Government’s recent Trade White Paper?
Some of it is positive, particularly the commitment to being more flexible in trade negotiations with African countries and wanting to promote more regional economic integration in Africa and elsewhere. However, I think there are some lost opportunities and I don’t think it delivers on the Government’s assertion that promoting more trade and freer trade will help the world’s poorest the most. More thought could have been given to what types of trade will actually filter through to help poorer producers. The emphasis on big companies and international trade flows doesn’t tackle what happens to small businesses and the individual. Unfettered, very speedy liberalisation of markets will not always be in the interests of developing countries and a more nuanced and staged approach to ensure investment filters down to the most needy would have been welcomed.
Are governments / policymakers attitude to fairer trade changing?
Although we have seen a good level of support for international development and the growth of fair trade labelling initiatives, support for fairer trade and the wider trade justice agenda is less strong. Under the Coalition Government there appears to be more focus on promoting the direct interests of the UK, and given the current economic climate that’s understandable, but from our point of view it means that policies that might help poorer countries and the poorest people aren’t getting the attention they should.
We still have a lot of work to do about big company practices and the way they trade.
Do you think that economic growth is the most effective way of lifting people out of poverty?
Economic growth is a helpful and effective way of lifting people out of poverty but not all forms of growth are equal so the way that growth is achieved and business practices are carried out is also important. Some people do benefit but the poorest people and those in rural areas often don’t see many of the trickle-down benefits. Economic growth doesn’t automatically benefit the poorest; it is an engine that provides opportunities. We must also recognise that there are environmental limits to what is sustainable economic growth. Unlimited growth is not the answer and we need to grow in ways that are environmentally sustainable.
What is Traidcraft’s biggest challenge at the moment?
As fair trade has become mainstream, we need to maintain enough market share to remain viable as a trading organisation in the face of significant competition. As the popularity of fair trade rises, the perception amongst some of our supporters might be that the job is done and that we have won the big arguments. We need to communicate clearly that although great strides have been made, what’s out there is just a drop in the ocean of what could be fairly traded and we still have a lot of work to do about big company practices and the way they trade.
What is its most significant achievement?
The most visible achievement has been the growth of fair trade from something that was initially dismissed as idealistic but unrealistic to getting it into the mainstream and making it something that businesses want to engage with. We founded Cafédirect, we helped set up the Fairtrade Foundation and the labeling systems, we have been one of the leading organisations which proved the business case and got big companies interested, and we harnessed the church community to reach out to the wider public to build the fair trade consumer base that has driven company decisions.
Importantly, we have helped put ethics very firmly onto the agendas of boardrooms up and down the country. We were the first company in the UK to produce social accounts to report on impacts on society, staff, suppliers and the environment and now most of the big companies in this country will produce some level of social report. We also lobbied, and won, changes to the Companies Act so that a duty was put on directors to demonstrate that due consideration is given to the wider social and environmental impacts of their business. This has been a very important cultural change.
What is the best piece of professional advice you have been given?
The former British High Commissioner in Bangladesh, Anwar Choudhury, once said to me “remember to be impatient”. That had a profound impact on my thinking because it is so easy to think in a long term, measured way but actually the scale of the challenge means that we do need an urgent sense of the need for change and to be proactive in making change happen.
Paul Chandler joined Traidcraft as Chief Executive in 2001. Previously, he spent nine years as head of the Christian mission agency, book publisher and retailer, SPCK and worked in a range of managerial roles for Barclays Bank. Paul is also chair of the European Fair Trade Association, a director of the William Leech Foundation and a member of the CBI North East Regional Council.
