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Abstract
This paper analyzes the extent to which fair trade organizations increase wages for
rural poor women in Bangladesh. Fair trade is a fusion of market-oriented business
with grass-roots activism attempting to reduce poverty through market mechanisms by
creating trading partnerships between poor artisans and rich consumers. The intent of
fair trade organizations is to return a greater share of value-added to the artisans as
wages or other non-monetary benefits. Information for this study was collected
through interviews with a variety of fair trade organizations, staff and artisans in
Bangladesh over the summer of 2005. To test the hypothesis that fair trade
organizations increase incomes for the rural poor, particular attention was given to an
NGO, a Non-Profit company, and a For-Profit business that export nearly identical
kaisa grass baskets. Worker incomes hover around subsistence levels and are not very
different from what agricultural day laborers in the surrounding areas receive. The
For-Profit business pays more in wages than the NGO and Non-Profit company,
bringing into question the effectiveness of Fair Trade as a mechanism for raising
incomes of the poor in low income countries such as Bangladesh .