Global Trade Mailing List Archive

["Vinay Chand" <<address removed>>]

Ruchi Tripathi's statements of Action Aid policy represents a very commendable 
agenda in calling for regulatory steps on a global level to try to even the 
playing field for developing countries. We are unfortunately no where near even 
serious debate or possibility of achieving it.

In the absence of imminent action to achieve regulatory protection, we must 
consider what commodity exporters can be helped to achieve for themselves and 
how those who are already convinced of the need for positive discrimination 
among consumers in importing countries can do by exercising their market rights.

For me the crux of the problem lies in attitudes in commodity producing 
countries which prevent them from being able to compete in the global economy. 
The attitudes I refer to are typical of commodity producers in that they offer 
for sale, they do not market or think in terms of marketing. If all you do is 
produce and offer for sale, it is not surprising that buyers will dictate 
prices that continually reduce you to survival levels. This is the market 
ethos. The buyers will keep telling producers that their produce is competing 
with others that are more attractive and that in any case is competing with 
other suppliers of a better quality of the same produce. They will finish by 
telling you that your quality standards are in any case poor.

These attitudes need to change and there is no substitute for that. From 
selling they need to change to marketing. That requires treating commodities as 
products because increasingly all commodities are competing with others. Even 
more it requires trying to transform commodities into products through 
processing. The best assistance that can be given is not price information! It 
is market information and intelligence but most of all marketing technology. 
Changing attitudes!

Although there may not be enough desire to introduce regulatory measures, very 
many consumers are well inclined and the success of fair trade labels are 
testament to that. Provided that fair trade boils down to paying farmers more, 
it can be promoted for that reason to consumers in developed countries. Better 
still is to combine fair trade with environmentally friendly greener practices 
that will lead to better food products.

DFID should concentrate on helping change attitudes through transfer of 
marketing technology and assist in financing promotion of fair trade type 
promotions.

Best wishes,

Vinay Chand,
230, Finchley Road,
London NW3 6DJ, UK
Tel: 44-20-7794 5977
Fax: 44-20-7431 5715
<address removed><mailto:<address removed>>