It is argued that regulation through ethical trade has developed as an attempted 'middle path' seeking to answer the criticisms of both state regulation on the one hand, and 'leaving it to the market' on the other. It is new and it has attracted its own criticisms especially when it is poorly designed. In some cases, though, it is delivering benefits in developing countries and it adds a number of new ideas to the 'regulatory toolkit'. Far from being a threat to state regulation, it can breathe fresh life into regulatory agencies and provide them with new roles as key players in emerging regulatory networks.
Manchester, UK, CRC Policy Brief, No. 8, 4 pp.