Toward SuSTainabiliTy: The roleS and limiTaTionS of ... - Resolve

Chapter 2: Actors – Government 34Government as FunderPublic funding and tax breaks are other powerfulgovernment tools that can influence certification.As mentioned previously, the governments ofAustria, Switzerland, and the Netherlands provideddirect funding to the FSC at a crucial pointin its development, and the U.S. governmentprovided funding for the development of laborstandards in the apparel industry. In the environmentalarena, the U.S. also provided federalfunding to support the development of LEEDstandards for green building construction in itsearly years (Smith & Fischlein, 2010). In addition,the IDH (a Dutch government-funded sustainabletrade initiative), together with the WWF, foundedand has provided substantial financing for theAquaculture Stewardship Council, which is developingstandards for aquaculture-grown fish. 5Governments can also provide financial assistanceto producers seeking to get certified.Belgium, for example, provides financial supportto producers and traders in developing countriesthat get certified to the Fairtrade LabellingOrganizations’ standards, or are members ofthe International Fair Trade Association. Rwandahas financed the costs of certification to the EastAfrican Organic Products Standard for severalexport companies, and provided 100 percent taxbreaks on the purchase of equipment used fororganic farming (Carey & Guttenstein, 2008).The Tuscany Regional Government supportssmall and medium-sized enterprises seeking tobecome certified to the SA8000 standard forsocial accountability by paying up to 50 percent ofthe costs of certification and providing tax breakson national insurance and regional tax payments(Carey & Guttenstein, 2008). And, for a time in2007 and 2008, the government of Cote d’Ivoireexempted certified cocoa from export duties (personalcommunication, Rainforest Alliance staff).Government as Opinion ShaperGovernment endorsement of certification systemsmay help add to their credibility and legitimacy asa solution to environmental or social problems.Conceptual SupportGovernments have given official support forprivate certification through international intergovernmentalbodies that have incorporated thissupport into key documents. For example, theUnited Nation’s program of action for sustainabledevelopment, Agenda 21, calls for governmentsto encourage ecolabels as a way to influenceconsumer choice. Similarly, the Commission onSustainable Development and the Organisationfor Economic Co-operation and Developmentboth identify ecolabel programs as an importanttool in several of their policy papers (Müller,2002). More indirectly, Sweden’s requirement thatthe forest industry promote ecological as well aseconomic goals seems to have increased industrysupport for the FSC as a way of meeting governmentrequirements (Cashore, et al., 2004).Marketing SupportGovernments’ considerable outreach capabilitiescan also advance certification systems. Forexample, Tuscany undertook a concerted publicawareness and information campaign that facilitatedthe rapid uptake of social accountabilitystandards by its regional businesses. The governmentof Rwanda used its convening power to bringtogether civil society organizations and create theRwandan organic agriculture movement, whichled to the development of the East Africa OrganicProducts Standard (Carey & Guttenstein, 2008).Also, the U.S. Department of Agriculture’s organicstandards program is run out of the department’sAgricultural Marketing Service, as the standardsare considered marketing standards (as opposedto safety standards, for example).5 www.idhsustainabletrade.com/what-we-do and www.ascworldwide.org/index.cfm?act=faq.faq&lng=1Toward Sustainability: The Roles and Limitations of Certification