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The Impact of Fairtrade on Poverty Reduction Through Rural Development: a Case Study of Small-Scale Fairtrade Vegetable Growers in Merucentral Sub-County

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The Impact of Fairtrade on Poverty Reduction Through Rural Development: a Case Study of Small-Scale Fairtrade Vegetable Growers in Merucentral Sub-County UNIVERSITY OF NAIROBI DEPARTMENT OF SOCIOLOGY AND SOCIAL WORK THE IMPACT OF FAIRTRADE ON POVERTY REDUCTION THROUGH RURAL DEVELOPMENT: A CASE STUDY OF SMALL-SCALE FAIRTRADE VEGETABLE GROWERS IN MERUCENTRAL SUB-COUNTY BY DICKSON KINOTI KIMATHI. C50/60961/2011 A Research Project report Submitted in Partial Fulfilment of the requirements for the award of the Degree of Master of Arts in Sociology (Entrepreneurship Development), University of Nairobi DECEMBER 2017 DECLARATION This research Project report is my Original work and has not been presented for a degree in any other university Signature……………………………… Date……………………………… Dickson Kinoti Kimathi Reg. No.C50/60961/2011 This research project report has been submitted for examination with my approval as the University supervisor. Signature……………………………… Date………………………………… Prof. E. Mburugu Department of sociology University of Nairobi ii DEDICATION This research project is dedicated to my beloved wife Caroline Kagwiria Kimathi, my children, Chanteel, Ian and Tiffany for their deep understanding and allowing me to be away from them at times during my study; and to my parents, Andrew Kimathi and Regina Kimathi for their prayers and support. iii ACKNOWLEDGEMENTS I thank my supervisor Prof E. Mburugu for being there for me whenever I requested for clarifications and for his wise counsel. I am also indebted to Prof. Gakuru, Prof. Yambo, Prof Chitere, Dr Kiemo and Dr Agnes Zani for their help in imparting skills that helped me complete my research project. I cannot forget to thank my supervisor at workplace George Mathew and my field colleagues Joseph Masaku the Meru region supervisor and Joel Njoroge the Mt. Kenya region Outgrowers manager for their moral support during the course work. Meru region Technical assistants Joseph Kirara, Ayub Mwangura and Mary Naitore and the Meru region sub county farmers who that facilitated my data collection for this research. Special thanks to all my research assistants for the special role they played as participant observers during the fielding of questionnaires. iv TABLE OF CONTENTS DECLARATION ........................................................................................................................ ii DEDICATION............................................................................................................................ iii ACKNOWLEDGEMENTS......................................................................................................iv LIST OF TABLES................................................................................................................... viii LIST OF FIGURES ...................................................................................................................ix ABSTRACT ............................................................................................................................... xii DEFINITION OF KEY TERMS ..................................................................................x CHAPTER ONE: INTRODUCTION.....................................................................................1 1.0 Overview ...............................................................................................................1 1.1 Study Background..................................................................................................2 1.2 Fairtrade ................................................................................................................3 1.2.1 The Aims of Fairtrade......................................................................................5 1.2.2 Finlays Horticulture and Fair-trade ..................................................................5 1.2.3 Outgrowers......................................................................................................5 1.3 Problem Statement.................................................................................................6 1.4 Research Questions................................................................................................7 1.5 Research Objectives...............................................................................................7 1.5.1 Main objective.................................................................................................7 1.5.2. Specific objectives:.........................................................................................7 1.6 Study Justification..................................................................................................7 1.7 Scope and Limitation of the Study .........................................................................9 CHAPTER TWO: LITERATURE REVIEW AND THEORICAL FRAMEWORK .. ............................................................................................................................................10 2.0 Introduction ......................................................................................................... 10 2.1 Movement from free trade to Fairtrade................................................................. 10 2.2 Origins and Development of Fairtrade: Where did it begin? ................................. 12 2.3 Proliferation of Private Standards and Supermarket Power................................... 13 2.3.1 Need for Traceability..................................................................................... 13 2.3.2 The Fairtrade Price ........................................................................................ 13 2.4 Fairtrade effects ................................................................................................... 14 2.4.1 Socio –Cultural.............................................................................................. 14 2.4.2 Economic ...................................................................................................... 15 v 2.4.3 Economic Advantages for Farmers due to Fairtrade ....................................... 16 2.5 Environmental Effects.......................................................................................... 18 2.5.1 Environmental Developmental Impacts a result of participation in the ........... 19 Fairtrade scheme .................................................................................................... 19 2.6 TheoreticalFramework ......................................................................................... 20 2.6.1 Classical Free Trade Theory .......................................................................... 20 2.6.2 Globalization Theory..................................................................................... 21 2.7 Conceptual Framework ........................................................................................ 21 CHAPTER THREE:RESEARCH METHODOLOGY....................................................23 3.0 Introduction ......................................................................................................... 23 3.1 Study Site ............................................................................................................ 23 3.2 Research Design .................................................................................................. 24 3.3 Unit of Analysis and Units of Observation ........................................................... 24 3.4 Target Population................................................................................................. 24 3.5 Sample Size and Sampling Procedure .................................................................. 24 3.5.1 Sample Size................................................................................................... 24 3.5.2 Sampling Procedure....................................................................................... 25 3.6 Data collection Methods....................................................................................... 26 3.6.1 Collection of Quantitative data ...................................................................... 26 3.6.2 Collection of Qualitative data ........................................................................ 26 3.7 Ethical consideration............................................................................................ 26 3.8 Data Analysis Techniques.................................................................................... 26 3.8.1 Data Analysis ................................................................................................ 26 CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND INTERPRETATION ………............................................................................................................................................28 4.1 Introduction ......................................................................................................... 28 4.2 General background of Respondents .................................................................... 28 4.2.1 Gender of the Respondents ............................................................................ 28 farm but for those who were available in their homes at the time of survey............ 28 4.2.2: Age of the respondents ................................................................................. 29 4.2.3 Level of Education......................................................................................... 29 4.2.4 Number of Children of the Respondents ........................................................ 30 4.2.5 Main Occupation of the Respondents............................................................
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