Effects of Fair Trade Certification on Social Capital: The Case of Rwandan Coffee Producers

Fair Trade certification may have important social effects on small-scale producers but empirical evidence is limited. We conducted logistic regressions using data from a 2009 survey of Rwandan coffee farmers to estimate the link between Fair Trade and social capital-measured as farmer trust and participation-while controlling for various other factors that could influence social capital, particularly membership in a cooperative organization. The results show a negative association between Fair Trade and farmer trust in cooperative leadership and a positive association with a perceived higher level of participation of women. Social capital is linked most significantly to farmers' interaction with their neighbors.