Promotion of Fair Trade as a recognised instrument of development cooperation in Slovakia and Bulgaria

Total Costs: 62.818 euros
Request from the Fund: 44.920 euros

This project will be implemented primarily in Slovakia and secondarily in Bulgaria. As such, the environment for the development policy debate is different in each country, though there are enough commonalities to allow for synergy and know-how transfer. The Slovak experience is more advanced than the Bulgarian, due in part to the cooperation with CIDA in the development of Slovak ODA policy, as well as to the earlier entry to OECD and the EU.

However, although Slovakia is more advanced, growth in ODA expenditure has remained stagnant and in real terms, this represents a steady decrease as in reality there has been a strong growth in the Slovak and Bulgarian GDP. Inspite of the strong lobbying on the part of the Slovak NGDO Platforma, there is still strong reluctance within the government, particularly the Finance Ministry to provide more funding for Slovak ODA. Recommendations of the Slovak NGDO Platforma provided to SlovakAid for the 2008 strategy were entirely rejected.

ODA in Bulgaria is only just getting underway, with the beginnings of a NGDO platform, and the early stages of the formation of a Bulgarian ODA strategy. The second national MDG Report, due in the first half of 2008, will be written from the standpoint of a country that is transforming from a beneficiary of foreign aid to a provider of Official Development Assistance.

One reason (excuse?) given for the slow growth in ODA in these countries is the passivity of the local population. The average Slovak does not understand why Slovakia should engage in developing countries, and due to the communist past, is often sceptical of promised outcomes for such expenditure, This is particularly true regarding Africa, seen as hopeless by many. Fair Trade offers a practical way for the average person to become informed and to participate in international development. It is not a “charity-based” solution, and thus has more appeal as a “help Africans to help themselves” strategy. Using and following the experience of the Fair Trade movement in the old EU, and making direct connections with beneficiaries from Africa, this project can help to accelerate public support for ODA through the practical and sustainable strategy of Fair Trade. Without such public support and a rapid increase, Slovakia has little chance of meeting its commitment to achieve of 0,33 GDP for ODA by the year 2015. Thus, despite a promising start, ODA in Slovakia can be described as stagnant, if not declining.

Despite the fact that Fair Trade has been identified as a key ODA strategy at the European level, it has not been a significant part of the Slovak ODA strategy to date. Fair Trade is virtually unknown in the EU NMS. Compared with more than 2600 Fair Trade shops in the EU 15, plus extensive distribution through major retail chains, we know of fewer than 10 such retail outlets in the EU NMS, and virtually no sales through chains.

The desired outcomes are as follows:
•    Raise the awareness of development issues, through engaging Slovaks and Bulgarians in the practical and “human” strategy of Fair Trade helping to overcome the “public support” problem for increased ODA.
•    Establish Fair Trade as an official strategy of Slovak and Bulgarian ODA, through developing support for the concept in public sector bodies. (Ministries and SlovakAid)
•    Increase the market for Fair Trade products in two NMS, thus multiplying the effect on producers in the developing world.
•    Integrate Slovak and Bulgarian Fair Trade NGOs into European Fair Trade networks, thus strengthening their capacities and know how.