Theoretical background: how are organizational forms shaped?
The question of organizational forms, particularly in the fields of social economy, are traditionally investigated through the lens of the ownership configuration and the legal form. In doing so, the authors generally rely – although sometimes unconsciously – on a contractual view of organizations (Coase, 1937), more precisely on the transaction cost approach (Williamson, 1979; 1985) or “new institutional economics”.
The practice of Fair Trade has been one of the most widely acclaimed movements for promoting local development through international co-operation. Fair Trade links small producers in the South more directly to Northern consumers through the intermediation of Fair Trade Organizations (FTOs) that are committed to “Fair Trade Principles” and the development of more just trade practices.
This project emanates from a CIDA Partnerships for Tomorrow Program II grant which funded a visit by myself and Annie McKitrick to Kyrgyzstan in December, 2008. The purpose of the trip was to introduce Social Economy concepts, including the notion of ‘fair trade’ to various sectors working to enhance community economic development in the country. Independence for Kyrgyzstan after the collapse of the Soviet Union brought severe poverty and economic collapse to rural areas as collective farms fell apart.