Budget Post Mortem

So how do you feel about today’s budget?

 There are no huge surprises but it is pleasing to see that the 1p fuel duty rise suggested by labour has been scrapped.  With the ongoing unrest in the Middle East affecting the UK’s fuel supply, fuel prices have remained an increasing concern, especially for SMEs.  At Shared Interest, we encourage our staff to travel into our city centre office on public transport and the majority do.  Our function in the fair trade movement doesn’t require the shipping of goods but many of our buyer customers would have been affected by a further rise in the cost of fuel, and will be relieved to see the fuel duty stabiliser kicking in. 

I am also interested to see that £2bn in extra funding has been allocated to the development of the Green Investment Bank, to launch in 2012.  This was something that was mooted in last year’s budget but what followed were differences in opinion over what powers the bank should have.  Shared Interest is proud to hear that the UK is widely regarded as a leader in green financial services.  Many of our own investors come to us because they would rather their money was being lent to businesses in the developing world than sitting in a UK bank account.  Those who decide to get involved with the Green Investment Bank will benefit from a similar social return in knowing that they are investing in a low-carbon infrastructure such as renewable energy and the development of new, clean technologies.

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Budget Predictions…

As we all wait with bated breath for today’s Budget results, at Shared Interest we would be hoping for various aspects of change (in an ideal world.)  One of them is around VAT.

Following the increased standard rate of VAT from 17.5% to 20% on 4 January this year, there have been suggestions that this may only be a temporary increase and that a commitment should be made to bring VAT down again at some point in the future.

 I think this is probably unlikely, and whilst for consumers this inevitably means price increases, we are hoping to see sales of Fairtrade goods continuing to grow past the £1bn barrier as British consumers continue to put their ethics first.  Still, for businesses generally, rising VAT doesn’t always have a direct impact as they are in effect just collecting net VAT for the Government.  However, because we lend money to fair trade businesses in the developing world, we cannot charge VAT to our customers.  This in turn means that we cannot recover the VAT we pay our suppliers back in the UK.  As an increase in VAT affects us on both sides, it would be good to see the possible decrease some have predicted.  Not long to wait now until all is revealed….

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Imagine all the People….

Only now after watching Comic Relief’s Famous, Rich & in the Slums can I genuinely understand the impact it must have on Shared Interest staff when they travel to see the communities we help support.

This is the closest I have personally been to seeing the challenges faced by many of the businesses we lend to in the developing world.

I spent much of January this year helping to co-ordinate filming of Monda, a jewellery-making business based in Kenya.  Many of Monda’s workers live in Kibera, the slum that was the focus of last night’s BBC programme.  So I guess I already feel fairly close to the Monda story, having told it as a case study and more recently as a film.

Still, nothing could have prepared me for last night’s viewing. Maybe it was the raw emotion shown by Lenny Henry and Reggie Yates in particular, or perhaps the sheer scale of the slum as the cameras panned overhead, but either way, I felt as if I was transported into Kibera and could almost experience the sights, sounds and smells for myself.

Words just can’t do it justice.  If you missed last night’s showing of Famous, Rich & in the Slums, then I urge you to catch up on BBC iplayer before next week’s second and final instalment.

But the story doesn’t end when the programme does; that is the most important thing to remember.  I for one now feel more of an affinity with the work that Monda does and came into work this morning eager to learn more about the future it offers people living in Kibera.

It was in October 2005, that the Monda business moved to Kenya from Ghana where they now work as a social, creative enterprise employing disadvantaged women who are often head of households and the only income earners for the family.

Caroline Monda says: “As business owners, we feel that by employing local women, we are investing in the wider community.”  This is because the income they earn once training has been completed supports families as the women are able to pay for food, shelter, clothing and school fees for their children.

Also, the natural materials such as glass and bones etc that make up much of the Monda jewellery, is actually sourced from Kibera.  As a result of a Shared Interest loan, Monda has been able to invest in new machinery that will enable them to produce glass beads and cut bone on site.

Caroline says of Monda’s relationship with Shared Interest: “It has had a positive effect.  We and our producers have been empowered to employ more women and young people.  Monda can now grow with its workers.  It is a great boost for the hard working producers.”

After last night’s assault on the emotions and the senses, it is comforting to come into the office and see that in a small way we are helping Kibera’s people earn a fair living.  You can’t have watched last night’s programme without wanting a better life for each and every person living in the world’s largest slum, where a million people co-inhabit in a space the same size as New York City’s Central Park (about 1.5 square miles.)  This includes over 50,000 AIDS orphans, often cared for by grandparents, overcrowded orphanages, or completely unattended.

If you do nothing else today, then please do watch the BBC’s eye-opening report.  Trust me, it will change your life, and make you want to help change the lives of others.

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You can shape the future of Fair Trade

As we draw near to the end of 2010, which has been our 20th year, Shared Interest is looking forward to entering a brand new era with a wealth of possibilities.

In order to involve a broader range of people in what we do, we are working hard on a host of new ideas.

We are keen to build stronger relationships with you, whether you are a current investor or someone who is simply interested in what we do.

We are also looking to offer new ways of helping fair trade businesses grow and flourish, and at this stage it is vital to hear your thoughts and have your input.

Would you like to be involved in shaping the future of fair finance?

Then please click here:

http://www.think-m.co.uk/shared-interest.php

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Really….THAT’S Fairtrade??

Over the past 20 years the fair trade movement has developed significantly, with a whopping 74% of the UK now recognising the Fairtrade Mark. It isn’t however only our general awareness that is growing, there are now a phenomenal amount of Fairtrade products readily available for purchase.

We ran a small survey here at Shared Interest HQ to see which Fairtrade products our staff were most surprised to see as certified Fairtrade, or using Fairtrade materials. The top 10 results are as follows:

  • Vodka
  • Rubber Gloves
  • Quinoa
  • Socks
  • Beer (Hadrian’s Wall celebrated its Fairtrade status with a chocolate beer)
  • Flowers
  • Cards
  • Christmas Pudding
  • Bath Salts
  • Pyjamas

Please comment below on what were you most surprised to see as certified Fairtrade, or using Fairtrade materials.

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Panorama: Chocolate – The Bitter Truth

Panorama: Chocolate – The Bitter Truth

As Easter approaches and sales of chocolate increase, so does concern about the ongoing problem of child labour in the cocoa industry. Recent programs in Switzerland, Germany and Denmark have taken a closer look at the cocoa industry and where our chocolate comes from. On 24 March, the BBC broadcasted a Panorama special, Chocolate – The Bitter Truth.

The Fairtrade Foundation feels that, despite some glaring inconsistencies and omissions, the program portrayed Fairtrade as the best solution to child labour issues – read more about it on their website at

http://www.fairtrade.org.uk/press_office/tackling_child_labour.aspx

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People with Pens have Power

It is great to see Shared Interest investors getting onto their soapboxes to wax lyrical about the power of social return.  Scanning today’s letters page in the Guardian, we spotted Jake Bachus’ response to an article highlighting the benefits of trade versus aid.  We are always hot on the heels to join this topic of debate since Shared Interest’s key aim is to help enable people to trade their way to a better future.  Big thanks to Jake for speaking out on our behalf and continuing to prove that, not only is the pen is mightier than the sword, but a hand up is better than a hand out. 

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Daisy Chain Reaction: we’re green with ethics

At Shared Interest we are definitely of the ‘share and share alike’ mentality (guess we’d have problems with our name otherwise!) which is a fundamental part of fair trade. Sharing skills and resources is vital to the businesses we lend to in the developing world but perhaps it is almost as important here; plus it is always a bonus to work with people and likeminded businesses that just get what you’re about and whose ideas float your boat.

That’s why we’re green with ethics and excitement – instead of envy – in working in partnership with www.daisygreenmagazine.co.uk on a string of North East events up until the end of the year. And when one of them includes the ULTIMATE summer clothes swap at Newcastle’s As You Like It on Thursday 25th June, I reckon it’ll be a case of wardrobes at the ready, elbows in the air and eyes peeled if you really want to get this one in the bag.

More dates and info to follow….

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Turning a Bike Tyre into a Belt? I have to Hand it to Otesha

When I was asked to write something on Shared Interest for the Otesha Handbook, I must admit I wasn’t feeling ultra inspired.  Nothing against directories and handbooks you understand, but as we try and have a presence in as many relevant tomes as possible, it can become a bit banal after a while.

But (and note I said this Paul Sharpe!) this time I was wrong.

Anyhow, my rule is that we never EVER bash out the same description of our work as standard, you have to look at the place your copy will live and make sure it’ll be a fitting home. 

When I clicked the link to Otesha, I not only thought Shared Interest would be at home there, but found that I felt kind of comfy too.  Far from the bland blah blah blah preaching that can go hand in hand with this type of lifestyle guide, opening the Otesha Handbook is a bit like holding a work meeting in the pub.  It is still dealing with serious matters but has far more attractive surroundings.

Anyway, before I get accused of blah blah blah preaching why not just check it out for yourself and don’t forget to tell us what you think.  Here is a sneaky snippet, followed by a link…

We’re ever so pleased that you’ve taken the time to open and read our masterpiece and lovingly flip through its pages.  Hopefully it doesn’t stop there, though! As you read this book, we’d love to hear what you’ve been thinking, learning or doing – so whether it’s turning your old bike tyres into stylish belts, getting your local shop to stock Fairtrade chocolate, or sneakily planting strawberries on roundabouts, please let us know!

http://otesha.org.uk/downloads/book/OteshaUK_Handbook.pdf

Shared Interest missed the boat for the book this year but all is not lost as we may just get a mention on the website, that’s if I stop blogging and get writing instead….

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Is eating chocolate ever entirely guilt-free?!

I read in the Scotsman over the weekend that a group of city businesswomen have raised awareness of Fairtrade chocolate by eating as much of it as possible. Around 70 women were involved in Saturday’s party at a member of Edinburgh’s Soroptimist organisation, which formed part of a worldwide initiative to draw attention to the current situation regarding the Ivory Coast.

I’m not sure how this challenge was organised or what the cut-off point was (an ‘eat until you feel sick’ tactic does not sound that great to me.) But then as the event is aimed at highlighting how thousands of children have been trafficked to work on cocoa farms on the Ivory Coast, then a bit of nausea seems a small price to pay for such an important campaign.

The Scotsman reported that a third of the world’s chocolate comes from the Ivory Coast, which means that there is quite a hill to climb in terms of change. However, although it helps enormously to have profile-raising campaigns to promote such causes, we can all make small changes without having to raid the sweet counter until we throw up!

By choosing only Fairtrade certified chocolate (made even easier now by Cadbury switching all of its dairy chocolate bars sold in the UK to Fairtrade) we can ensure that our afternoon sugar hit leaves us with a cleaner conscience (because eating chocolate is never entirely guilt-free, right?) and helps put an end to the cycle of poverty and dangerous conditions involved in the chocolate industry on the Ivory Coast.

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Namayiana - Fair Trade Producer Visit Click here to learn how you can invest in fair trade.

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