VirtuArte.com

Walmart plans to offer 500 fair trade certified products made by 20,000 women from more than 20 countries by 2016.  It's an interesting plan for the retailer known for low prices and a few large suits involving treatment of workers.

The news seems to have surprised many, as one of the goals of fair trade is to make sure farmers, workers and artisans are paid a "fair wage."  Walmart is known for driving down the prices it pays its vendors.  In fact, there have been many articles about how Walmart calls in companies and tells them to lower their prices.

There have been many opinions expressed of the plan.  We looked into it, and compiled some of the main opinions for your.  Take a look, and tell us what you think.

It seems as if Walmart has been testing out fair trade products for at least a few years.  Walmart's corporate website states that in 2007, Sam's Club was the first mass market retailer to offer fair trade certified bananas, and they've since added fair trade coffee to their inventory.  In 2010, more than $600,000 was given back to farmers by the retail giant.

Earlier this year the Walmart Foundation, a charitable branch of the company, gave a $490,000 grant to Aid to Artisans, and recently began a campaign to improve the lives of women.

If done well, this new venture could put a considerable amount of money into the communities of women artisans.  But, many in the fair trade community have expressed skepticism.  Michelle Loeper, a spokesperson for Ten Thousand Villages has been quoted by several news organizations on the topic.

"I'm not sure what their model will be," Loeper said.  "From our point of view we work with the artisans to identify a fair income, one that will benefit them and be sustainable.  We're the anti-Walmart, a nonprofit company dedicated to providing sustainable income opportunities to artisans in developing countries -- I doubt that what's Walmart is doing."

Others have expressed concerns that Walmart will demand higher volumes and lower prices, which will diminish the handmade quality of the products.  The entrance of Walmart into this area may perpetuate the myth that products from these areas are "cheap."

Another concern is that Walmart won't be able to meet the expectations it is creating in developing countries.  Walmart will be ordering large quantities of product.  In order for the artisans to be able to fulfill these orders they will have to train and employ additional people.  If Walmart does not reorder these products or reorder in the same quantities then there will be people who have been trained and are expecting to make products for Walmart who will have no work.

Positively speaking, Walmart will open a new market for handmade fair trade certified products, and the retailer's involvement will almost undoubtedly raise awareness.  So, far Walmart has received a lot of good publicity for announcing their decision to offer fair trade products.  And, now its time for them to act and prove that their announcement was more than an elaborate publicity stunt.

Right now, Walmart stands at a crossroads where they can greatly impact the developing world in either a very positive way or a very negative way.  As a company interested in conscious capitalism, we would love to see artisans in the developing world benefit from an arrangement with Walmart.  Let's hope that is what happens.  If Walmart demands that prices be driven down as it has done in the past, it could destroy all that has been accomplished in this area.

Want to find out more about Walmart's fair trade plans?  Aid to Artisans has compiled a list of articles explaining the initiative.

Tell us:  We've summed up some of the arguments for and against Walmart offering fair trade certified products, and we've shared our thoughts. Now, tell us: What do you think?