One of the most encouraging parts of today's reading was when Novogratz spoke about the choice she had between running her own $100 million philanthropic fund or following her idea of creating a new system to improve the world. The decision is very difficult because one path leads to a charted, successful future with a lot of great options (the philanthropic fund), while the other offers immense upside but at the expense of certainty and a lot of sacrifice. It made me so happy and it was inspiring to see her choose to follow her gut and make the decision to stick with her original idea. Although there was no solid plan carved out, she knew that there was so much potential to change the world that it could not be ignored.
The second most significant moment of the reading for me was when Dr. V's clinic decided not to sell the cataract lenses for $60 despite the ability to reap a huge profit. There were other ideas in mind for the hospital than just making money; they were out there to help all people, including the poor. In a business environment that is so obsessed with profits and seeing the financial upside of an investment, it's good to see that in places less fortunate people are making the hard decisions to do the right thing. Best of all, the hospital was able to make money and serve its higher purpose. In other words, they aren't mutually exclusive things.
The reason why Novogratz's attitude toward her idea was so meaningful to me is because it's always great to hear stories of people identifying an opportunity and seizing it. It's very difficult to steer away from what's safe and familiar. Often times, in my life I lean to make the decisions that will produce the less change and maintain the status quo. Unfortunately, in order to address some of the biggest issues facing society, we have to start going with our ideas to make a difference even if there's a greater possibility for failure.
The reason why the refusal to sell the lenses was so powerful to me is because I can only imagine how hard it is to turn down an enormous profit, especially for an institution with such demanding needs, but Dr. V made the right choice. It's not often you see leaders being agents of positive change, but when it happens it's marvelous. It's good to learn of these examples so in the future, when most of us students will have to make similar decisions, we will know that it's not bizarre or outlandish. The right choice is what should be done and people have done it with immense success.
The first thing that impacted me the most about this reading was the lack of awareness about fair trade that the workers in the Darjeeling tea plantations. The plantation was fair trade certified, yet it was not doing anything that was demanded from having such standards. The author goes into detail of how it lacked in the three major statutes of fair trade, but the shocking part was that the majority of the workers were not even aware they were in such a system or that it even existed.
The second most impactful thing about the reading was the blatant exploitation of the tea plantation owners; both to exploiting the workers and the community. Specifically, on the unfairly economic benefits from the revenue that comes from the plantation. The price floor (if there’s a price floor) set by the fair trade standards committee benefits the plantation owners directly because the majority of the workers are paid a minimum wage set by labor negotiations. To make matters worse, the price premium that is supposed to go into community development is being used to pay for the necessary requirements set forth by the labor agreement signed in the 50s. This will put more profit in the pocket of the owners and less will be received by the workers.
There are definitely factors that are wrong with fair trade and pieces like these are invaluable for advancing the fair trade mission. I think the author is a bit cynical since she tends to make the claim that the colonial system has a lot of benefits. However, like any developing country, corruption will be high and people trying to find loopholes in the system will always be present. The most important conclusion is to acknowledge the problems and find solutions so that the idealism behind fair trade can actually be accomplished. It’s shocking how much is wrong with the current system in Darjeeling, but there are other areas that definitely show much more improvement. Hopefully, now that some of the problems are being addressed, more action is being taken by both the consumer and the labeling body.
One of the things that stood out to me about the reading was the way the idea for Root Capital came to be. William Foote, the founder, recognized the gap between businesses that were too large for microfinance but too risky for traditional investing routes. He saw this firsthand during his extended trip in rural Mexico. It’s just a great thing to read about how people get inspired and how a change of environment is sometimes vital for opportunities to be seized.
Another thing that really impacted me about the reading is how much investment opportunity there actually is in these developing countries. With a bit of a finance background, I always hear about how lucrative the emerging markets can be. I wasn’t aware, however, of how much potential there is to invest in budding industries through the different cooperatives in these countries.
As an inspiring entrepreneur, I sometimes get discouraged when I feel like every idea has already been monetized or developed. I know it’s not logical, but it seems like somehow the inspiration is out of my reach. It’s very inspirational to see the way people get the idea to start a company, especially when it happens out of the blue. Foote saw the opportunity doing something to make a change and then figured out how to make it a viable business. Hopefully, through my education and future life experiences, I will be able to obtain a similar skill.
One of the most important things I’ve learned from this class is how powerful of a change one can make with a business investment in a community. Giving someone the foundational help they need to empower them to make money is getting simpler everyday. Microfinance is a direct option, but there are other options such as purchasing fair trade or rainforest alliance goods. What is incredible, though, is tapping investment funds such as Root Capital which change communities. Fair trade helps a few people over the long-term, but these investments (ranging from $50,000 to well into the millions) can completely transform a community. This money allows proper infrastructure to be built that will last for years. Also, another point to note, is how diligent these people are to repay their loan: 98% repayment!
The first thing that really impacted me from the reading was right at the beginning when the article listed some statistics. Fair Trade has done a lot of good and has directly benefited more than 7 million people in the developing world. However, this is only a small portion of the world that lives below the poverty line. These are some of the most astonishing numbers I’ve ever encountered: 1.4 billion people, one-fifth of the world’s population, live at or below $1.25 a day. Also, 2.6 billion people, about 40% of humanity, are living on less than $2 a day. That’s striking and it actually made my jaw drop.
The second thing I found really eye opening was the concerns that the article raised on the impact that fair trade has on climate change. Importing goods from countries that are thousands of miles away produces a colossal amount of carbon emissions. To make matters more complicated, this pollution directly affects many fair trade growers whose growing conditions are deteriorating. It’s definitely another issue to think about and to consider when scaling fair trade initiatives.
I’ve always known that a large percentage of the world lives in poor conditions, and it made me grateful for the opportunities and blessings I have in my life. However, when I read the sheer number of people that are living under $2 a day it was definitely a wake-up call. I don’t really know how to process this information or what I can really do help change this number. The problems in developing countries extend beyond just economical and history does seem to indicate that intervening is the best route. It’s definitely disturbing, to say the least, but it also gives me a new appreciation for how much of an impact fair trade can have on these people’s lives.
There are multiple values in terms of ‘improving the world’ that I hope to maintain. One of these is to make sure I live my life in a way that leasts impacts our environment. I’ve seen various media that have indicated climate change is a real issue with grave consequences. The article raises an issue with fair trade increasing carbon emission by shipping fair trade goods from countries thousands of miles away to our front door. Is this sustainable? Is fair trade really a long-term strategy or is it only until growers and producers have established enough infrastructure to start trading locally? These are questions that I’ve never considered but they are vital to the scaling of fair trade. I’ve seen more and more campaigns that call for buying local in order to help our environment and revitalize our economy. It’s hard to balance our priorities but it’s an issue that we deal with all the time.
One of the most jarring things about this documentary is the chaos that takes place in the country. There are so many political issues that it is extremely difficult to maintain a legal infrastructure. What makes matters more complicated is the fact that the Democratic Republic of Congo is such a resource-rich nation. The first thing that impacted me the most was the constant struggle between the rebels and the Congolese army. There are constant struggles for territory and land. The worst part is that with so much unrestricted wealth there is likely to be an enormous amount of corruption. It seems like an insurmountable struggle for the Congo to have a strong, legal economy and a safe nation. Foreign involvement magnifies this problem since it takes advantage of violent struggle for resource that yields a very low price.
The second most striking thing about this documentary is the amount of violence and crime that has resulted from the coltan mines. Women in the film spoke about rape being used as a tool for intimidation and submission. There was very little chance for them to escape since they were under constant threat of violence. The worst part is that even when they were cooperating, the rebels would sometimes still hurt them to show off their power. The women also spoke about being killed if you were deemed too exhausted to work. “They would just slit your throat. That’s how you died.” It’s so chilling to even imagine, but that’s the reality. It has been the reality for thirteen years after millions of Congolese have died as a result of these violent crimes.
I am very conflicted about how to feel in terms of the political issues taking place in the Congo. On the one hand, it is horrible that the government has very little control of the country and that these crimes are allowed to perpetuate. However, what are we, as members of our local community, to do about this problem? Many, including the gentleman who did the TED talk, argue that as consumers we should stop funding coltan technology. However, I really don’t think that is a sustainable solution. For one, I am positive that companies will continue to purchase coltan, especially in emerging economies such as China and India where local technology companies are beginning to manufacture en masse. Secondly, these electronic products are part of our daily reality and are the tools that are allowing us to learn about these things in the first place. I believe this is an issue that the Congolese people must resolve themselves, there is no sustainable way a country can straighten out its deep-rooted issues with constant foreign aid.
The violence is something that we can impact. I believe that we need to urge our representatives to enforce the UN conditions that have been set in regards to child labor, mining, and extortion. Also, we should pressure companies to build a sustainable way to extract these resource that will improve the conditions for workers and enable them to create an economy as oppose to just draining their land. It’s difficult, but I think this is where the best chance for change is present.
Hi, my name is Cesar and I'm a student in Kate's Fair Trade class. Here are some of my thoughts on the Dark Side of Chocolate documentary:
One thing I found really impactful in the video was when they first interviewed the CEO of SAF Cacao, Ali Lakiss. SAF Cacao is one of the largest cacao exporters in the Ivory Coast and their CEO was claiming that he knew for a fact that there was no child trafficking or child labor in his industry. During the interview you could see how confident he was in his position when he mentioned that there were committees and documents that supported his claims. Later on in the film, however, after Ali Lakiss was confronted with the proof the crew had obtained, he accepted that there was a problem in the cacao plantations with child labor and trafficking. Although hesitant, he completely changed his opinion and revealed that he was aware of these issues.
Another part of the video that was very powerful was when the crew went undercover to the plantations to see if there were children working. What they found was kids as young as ten years old walking around with machetes. Clearly this was in violation of Ivory Coast law, but it seemed so common that it was daunting.
The most disturbing thing about the traditional corporate structure is how central massive profits are for the sustainability of the business. This itself is not bad, since you are supposed to take your stakeholders into consideration when making business decisions, but it seems that it has been corrupted as a way to say the end (profit) justifies the means. Often times this includes exploitation somewhere in the value chain, which is either ignored or hidden. This behavior was exemplified by SAF Cacao CEO Ali Lakiss and it displays the willingness of some business leaders to blatantly lie in order to maintain the most profitable business operations. Frankly, it’s extremely disturbing and it continues to serve as a reminder of how important it is to hold companies, and specifically leaders, responsible in order for the consequences of the law to really bring change.
When I first saw the footage of the children working in the plantations I was shocked. Hearing about the conditions and being aware of trafficking is important, but seeing the reality in action shifts the experience into another level. It becomes real and humanizes the problem to the point where it would be horrendous to ignore. The work of this documentary is important because it highlights these issues and presents them in a way that makes them real. The only thing that is missing, however, is for an action step to be presented in the video. The problem was brought forth, but what can we, the consumer, do in order for this to me remedied?
Tue Nov 12, 2013 5:02 am
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