… is supposed to start voting today. But it didn’t. The dear readers of this blog have the opportunity to preview the winning idea. (Texts in green colour are amendments I made after the original submission.)

An open (web-)portal which circumvents the traditional trade chain and connects the consumer directly with the producers.

  1. Based on the principles of free trade, a non-profit organisation provides a platform much like an online shopping website on which producers can directly offer their products to the consumers by-passing the traditional stages of the trade chain.
  2. Details of the producers and discussions of the consumers about the products and producers enforce transparency.
    Add: 2b. External auditors audit the producers.
    Add: 2c. Location of the producer, means and the “carbon footprint” of the transport can be stated.
  3. The said platform also provides the logistics and legal & financial services for the (transnational) transactions. Logistic centres bundle orders — if a region has a significant number of participants — for shipping to lower the transport cost and the carbon footprint.
    Add: 3b. Conventional supermarkets can be logistic centres involved in handing out the goods to the buyers.
  4. The said platform provides free business consultancy for the producers to help them to build up a sustainable livelihood, to expand their businesses and to foster corporations between the producers. The platform also provide Internet access and other technical know-hows to the producers.
  5. Finally, relationships between the consumers and producers are formed and maintained through a social networking system. Thus, the producers end their existence as faceless plantage labourers, but become persons and friends like the the local butcher, hairdresser and that guy from the corner shop in the good old days (smile).
  6. The platform charges for their services only as much as it is necessary to cover the operational costs.
  7. Add: A modular structure for transport, auditing, logistics and other services which can be outsourced. Companies other than the primary organisation can provide these services.
    Add: 7b. Implementation of microfinancing via Wokai, Kiva etc.
  • Currently, large transnational corporations monopolise the international market for agricultural, textile and other products. The profit for the managing level is often astronomic, but for the producers marginal. Small-scale producers cannot compete with the industrial syndicates. They are forced into large-scale industries where production is mostly uniform and diversity suffocated, e.g. NYT Op-Ed “Yes, We will have no bananas” by Dan Koeppel, June 18 2008 (http://www.nytimes.com/2008/06/18/opinion/18koeppel.html).
  • Local producers have no chance on their own market, because their products are out-competed by foreign imports despite better qualities. They are subject to asymmetric negotiations with wholesale traders who dictate the prices.
  • Add: Trade benefits from the information and geographical gap between producers and consumers, and takes the risk of transport, storage, devaluation etc. Internet technology is a perfect system to bridge the information gap and provide logistic management.
  • The small-scale farmers and businesspeople, both local and from the developing countries, have an easy and direct way to maximise their profits and to establish a sustainable livelihood.
  • Consumers in the developed world enjoy genuine and personalised products. They form personal contacts with the producers, and feel a sense of accomplishment through the immediate effects of their consumption.
  • Consumers choose where the products come from and minimise the carbon footprint through conscious shopping.
A platform incorporating aspects of online shopping and social networking is set up. Trial logistic centres are established in some (legally & politically) accessible regions, where some chosen products, e.g. coffee or tea, are produced by small-scale producers. When the trade with this products is successful, the platform can be expanded to incorporate other regions and other products.

  • The optimal outcome is that millions of people, farmers and small businesspeople, those who are neglected in the Western world and those who being in a developing country have no access to a broader market, gain an opportunity for greater prosperity without anyone cutting off their profits.
  • An objective measurement is the number of participants (consumers & producers), and the amount of deals made through the platform.
  • A successful project will draw copycats. Similar platforms (for- or non-profit) will arise and provide competitive services for the benefits of the consumers and producers. The latter have greater variety of choices.