Fair Trade Initiatives in the Ethiopean Coffee Market

Table of Contents

1. Fair Trade within the coffee market

1.1 Fair Trade development as response to globalization

1.2 The coffee paradox and fair traded coffee in Ethiopia

2. New Governance from an Ordonomic perspective

2.1 New Governance supporting state: Analysis based on the three-tiered model

2.2 New Governance types of commitment

2.2.1 Individual self-binding commitments

2.2.2 Collective commitments

2.2.3 Binding services

3. Fair Trade as an instrument of New Governance: Analysis from an Ordonomic perspective

3.1 Identification of dilemma structures from North to South

3.2 Solution approach through Fair Trade along the whole value chain

3.2.1 Individual self-binding commitments within the coffee market

3.2.2 Collective self-binding commitments within the coffee market

3.2.3 Binding-services within the coffee market

3.3 Properties of Fair Trade: Challenges and deficits in day-to-day application

Research Objectives and Themes

This thesis examines Fair Trade in the Ethiopian coffee sector through an Ordonomic research perspective, utilizing the three-tiered model to analyze how the movement functions as an instrument of New Governance to overcome social dilemmas within the global economy.

• Application of the Ordonomic research approach to global trade
• Identification of dilemma structures in the North-South trade relationship
• Evaluation of Fair Trade commitments (individual, collective, and binding services)
• Analysis of sustainability through the three ESG (Environment, Social, Governance) criteria
• Investigation of challenges and deficits in current Fair Trade implementation in Ethiopia

Excerpt from the Book

Summary of Chapters

1. Fair Trade within the coffee market: Provides the historical context of Fair Trade development as a reaction to globalization and introduces the unique challenges of the coffee sector in Ethiopia.

2. New Governance from an Ordonomic perspective: Establishes the theoretical framework using the three-tiered model to explain how institutional rules and moral commitments can solve social dilemmas.

3. Fair Trade as an instrument of New Governance: Analysis from an Ordonomic perspective: Applies the theoretical model to analyze specific dilemma structures in the coffee value chain and evaluates the efficacy of different Fair Trade commitment types regarding ESG criteria.

Keywords

Fair Trade, Ordonomics, New Governance, Coffee Paradox, Ethiopia, Three-tiered model, Prisoner Dilemma, Sustainability, Corporate Citizenship, ESG criteria, Value Chain, Social Dilemmas, Institutional Rules, Development, Global Trade

Frequently Asked Questions

What is the fundamental focus of this thesis?

The work focuses on analyzing Fair Trade initiatives in the Ethiopian coffee market using the Ordonomic research approach, specifically examining how Fair Trade functions as a tool for New Governance.

What are the primary themes discussed?

The central themes include the transformation of the global coffee trade, the identification of social dilemma structures, the role of moral commitments, and the application of sustainability criteria (ESG).

What is the primary objective of the research?

The objective is to explain how Fair Trade attempts to overcome Pareto-inferior outcomes (dilemmas) in global trade and to evaluate its current success and future challenges in the context of the Ethiopian coffee industry.

Which scientific methodology is applied?

The paper applies the Ordonomic research approach, which utilizes a rational choice analysis of the interdependency between institutional rules and semantic mind categories, specifically using the "three-tiered model".

What topics are covered in the main body of the work?

The main body identifies dilemma structures along the coffee value chain from North to South, evaluates different commitment types (individual/collective), and assesses Fair Trade's performance using ESG dimensions.

Which keywords best characterize the study?

Key terms include Fair Trade, Ordonomics, New Governance, Ethiopia, Coffee Paradox, and Sustainable Development.

How does the author define the "Coffee Paradox"?

The author defines it as a situation where producers in the South receive decreasing returns for raw materials, while Northern countries accumulate wealth through symbolic value addition and branding.

What role does the "three-tiered model" play in this analysis?

The model serves as the analytical core, separating the basic economic game, the political rule-setting level, and the public discourse level to explain how incentives and rules can be reframed to create win-win scenarios.

Does the author conclude that Fair Trade has achieved all its goals?

No, the author highlights that while Fair Trade has successfully improved farmer security and transaction stability, it still faces significant challenges regarding environmental protection and the actual fairness of the value chain distribution.