Over the course of three years, Fair Trade USA carried out a mixed methods study in nine countries and across seven commodities in order to understand the impact of Premium Investments. Premium funds are accrued through the program’s unique requirement that commodities bought on fair trade terms include additional resources for community investment. They are invested in worker-controlled Community Development Funds. Unlike other economic development programs, this model results in workers subsequently voting on how to spend the funds earned through their fair trade agreements.
Among other positive outcomes, the Fair Trade Certified™ program was found to be a driver of increased education. A variety of education-related initiatives resulted from Community Development Fund investments, including scholarships for participants’ children, the provision of school supplies, as well as improved infrastructure for schools.
In the Ivory Coast, cocoa grower cooperatives have invested heavily in updating existing schools with toilets, chairs, and tables, as well as building new schools. These new schools facilitated access to education locally, reducing the time needed for students to travel to school as well as parental anxiety