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From Poverty to Power Green, Oxfam 2008 - weman

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FROM POVERTY TO POWEREffective stateExport-processingzoneFairtradeFlexible labourFree tradeagreementFull-costaccountingpractice can dis<strong>to</strong>rt international trade and hurtproducers in poor countries.A state that can guarantee security and the rule of law,and can design and implement an effective strategy <strong>to</strong>ensure inclusive economic growth. Such a stateshould be accountable <strong>to</strong> citizens and able <strong>to</strong>guarantee their rights.A special economic or free trade zone, typically in adeveloping country, that offers exemptions frombureaucracy, taxes, and tariffs, with the aim ofattracting foreign investment. Although EPZs oftensucceed in this aim, their lack of regulation often alsoresults in poor pay and conditions for the workersemployed in them.Fairtrade products carry the FAIRTRADE Mark,which guarantees that the market chain for theproduct is certified by the Fairtrade LabellingOrganization (FLO) <strong>to</strong> fulfil international social,economic, and environmental standards. A minimumprice is paid <strong>to</strong> the producer in advance, plus anadditional premium that must be spent oncommunity development.‘Flexibility’ can sometimes benefit workers in termsof leave entitlement or working hours, but morecommonly it involves low pay, temporary contracts,poor working conditions, and a lack of recognition oflabour rights. It also makes it easier for employers <strong>to</strong>hire or fire staff.Bilateral or regional trade agreements <strong>to</strong> reducetariffs and regulation of trade and investment flows.FTAs can involve significant disparities in rights andbenefits between parties (in market access, tariffs,intellectual property), particularly if one is adeveloping country and the other a powerfuldeveloped country or trading bloc.The pricing of goods and services <strong>to</strong> reflect their truecosts, including cost of manufacture, cost of disposal,and impact on the environment. Also takes accoun<strong>to</strong>f the value <strong>to</strong> the economy of unpaid work, which isundertaken largely by women.502

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