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Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers

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  • Elder, Sara D.
  • Zerriffi, Hisham
  • Le Billon, Philippe

Abstract

Fair Trade certification may have important social effects on small-scale producers but empirical evidence is limited. We conducted logistic regressions using data from a 2009 survey of Rwandan coffee farmers to estimate the link between Fair Trade and social capital—measured as farmer trust and participation—while controlling for various other factors that could influence social capital, particularly membership in a cooperative organization. The results show a negative association between Fair Trade and farmer trust in cooperative leadership and a positive association with a perceived higher level of participation of women. Social capital is linked most significantly to farmers’ interaction with their neighbors.

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  • Elder, Sara D. & Zerriffi, Hisham & Le Billon, Philippe, 2012. "Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers," World Development, Elsevier, vol. 40(11), pages 2355-2367.
    • Handle: RePEc:eee:wdevel:v:40:y:2012:i:11:p:2355-2367
    DOI: 10.1016/j.worlddev.2012.06.010
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    Cited by:

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    2. Galey Tenzin & Kozo Otsuka & Kaoru Natsuda, 2015. "Can Social Capital Reduce Poverty? A Study of Rural Households in Eastern Bhutan," Asian Economic Journal, East Asian Economic Association, vol. 29(3), pages 243-264, September.
    3. Bosbach, Moritz & Maietta, Ornella Wanda, 2019. "The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?," Ecological Economics, Elsevier, vol. 158(C), pages 34-41.
    4. Andrea Guariso & Marijke Verpoorten, 2018. "Aid, trade and the post-war recovery of the Rwandan coffee sector," Journal of Eastern African Studies, Taylor & Francis Journals, vol. 12(3), pages 552-574, July.
    5. David L. Ortega & Aniseh S. Bro & Daniel C. Clay & Maria Claudia Lopez & Espoir Tuyisenge & Ruth Ann Church & Alfred R. Bizoza, 2019. "Cooperative membership and coffee productivity in Rwanda’s specialty coffee sector," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 967-979, August.
    6. Staricco, Juan Ignacio, 2017. "Transforming or Reproducing Conventional Socioeconomic Relations? Introducing a Regulationist Framework for the Assessment of Fairtrade," World Development, Elsevier, vol. 93(C), pages 206-218.
    7. Niranjala Hulugalla & Kyohei Yamada & Makoto Kakinaka, 2021. "Personal social capital and voluntary participation in the Village Development Programme in rural Sri Lanka," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(5), pages 803-825, July.
    8. Pritish Behuria, 2018. "The politics of upgrading in global value chains: The case of Rwanda’s coffee sector," Global Development Institute Working Paper Series esid-108-18, GDI, The University of Manchester.
    9. Donovan, Jason & Poole, Nigel, 2014. "Changing asset endowments and smallholder participation in higher value markets: Evidence from certified coffee producers in Nicaragua," Food Policy, Elsevier, vol. 44(C), pages 1-13.
    10. Raquel Ajates, 2021. "Reducing the Risk of Co-Optation in Alternative Food Networks: Multi-Stakeholder Cooperatives, Social Capital, and Third Spaces of Cooperation," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    11. Hidayat, Kurniawati Nia & Glasbergen, Pieter & Offermans, Astrid, 2015. "Sustainability Certification and Palm Oil Smallholders’ Livelihood: A Comparison between Scheme Smallholders and Independent Smallholders in Indonesia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(3), pages 1-24, September.
    12. Aaron Tham & David Fleischman & Peter Jenner, 2018. "Spilling the social capital beans: a comparative case study of coffee service enterprises within Asia-Pacific," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(2), pages 150-173, March.
    13. Donovan, Jason & Poole, Nigel, 2016. "Changing asset endowments and smallholder participation in higher-value markets: Evidence from certified-coffee producers in Nicaragua," IFPRI book chapters, in: Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 3, pages 93-126, International Food Policy Research Institute (IFPRI).
    14. Kolk, Ans & Lenfant, François, 2016. "Hybrid business models for peace and reconciliation," Business Horizons, Elsevier, vol. 59(5), pages 503-524.
    15. Gavin Hilson, 2014. "‘Constructing’ Ethical Mineral Supply Chains in Sub-Saharan Africa: The Case of Malawian Fair Trade Rubies," Development and Change, International Institute of Social Studies, vol. 45(1), pages 53-78, January.
    16. Meemken, Eva-Marie & Qaim, Matin, 2017. "Can Private Food Standards Promote Gender Equality in the Small Farm Sector?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258088, Agricultural and Applied Economics Association.
    17. Minten, Bart & Dereje, Mekdim & Engeda, Ermias & Tamru, Seneshaw, 2014. "Who benefits from the rapidly increasing voluntary sustainability standards? Evidence from fairtrade and organic certified coffee in Ethiopia:," ESSP working papers 71, International Food Policy Research Institute (IFPRI).
    18. Vincent Canwat, 2023. "Value chains and sustainable development: A perspective of sustainable coffee value chains in East Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 668-679, April.
    19. Mojo, Dagne & Fischer, Christian & Degefa, Terefe, 2015. "Who benefits from collective action? Determinants and economic impacts of coffee farmer cooperatives in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211889, International Association of Agricultural Economists.
    20. Raluca Dragusanu & Daniele Giovannucci & Nathan Nunn, 2014. "The Economics of Fair Trade," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 217-236, Summer.
    21. Anastasia A. Seferiadis & Sarah Cummings & Marjolein B.M. Zweekhorst & Joske F.G. Bunders, 2015. "Producing social capital as a development strategy: Implications at the micro-level," Progress in Development Studies, , vol. 15(2), pages 170-185, April.
    22. María Camila Rendón-Rendón & Juan Felipe Núñez Espinoza & Ramón Soriano-Robles & Valentín Efrén Espinosa Ortiz & Luis Manuel Chávez Pérez & Randy Alexis Jiménez-Jiménez, 2019. "The Social Fabric of Cheese Agroindustry: Cooperation and Competition Aspects," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    23. van Rijsbergen, Bart & Elbers, Willem & Ruben, Ruerd & Njuguna, Samuel N., 2016. "The Ambivalent Impact of Coffee Certification on Farmers’ Welfare: A Matched Panel Approach for Cooperatives in Central Kenya," World Development, Elsevier, vol. 77(C), pages 277-292.
    24. Morrow, J.L., Jr. & Joyce, Richard Patrick, III & McMahon, William J. & DeMaia, Antonio M. & McVicker, S. Caleb & Parsons, Ashley E. & Wilcox, Kristin, 2017. "Cooperation among Ugandan farmers: cultivating social capital," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(5).
    25. John R. Brock & Jane S. Lopus, 2015. "A Note on Teaching About Fair Trade," The American Economist, Sage Publications, vol. 60(1), pages 74-78, May.

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