Tag: Published: March 2010

Favela Fashion Brings Women Work

Post author By David South Consulting
Post date 16/11/2022
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By David South, Development Challenges, South-South Solutions

A highly successful cooperative of women in Brazil has shown that it is possible for outsiders to make it in the fast-paced world of fashion. Despite being based in one of Rio de Janerio’s slums, or favelas (http://en.wikipedia.org/wiki/Favela), the women have developed a reputation for high-quality merchandise and even put on fashion shows.

Fashion earns big money around the world: The global clothing industry is estimated to be worth more than US $900 billion a year. But fashion also has a reputation for relying on sweat shops, poor pay and poor working conditions. The poor are the most at risk of exploitation in the industry – upwards of 90 percent of sweatshop workers are women (www.feminist.org).

Yet the COOPA-ROCA cooperative (www.coopa-roca.org.br/en/index_en.html) – or Rocinha Seamstress and Craftwork Co-operative Ltd – has pioneered a way to involve poor women in the business, build their skills while creating high-quality products, and be flexible enough to make time for their families’ needs. It particularly helps single mothers.

The cooperative was founded by Maria Teresa Leal in Rocinha – the largest favela in Rio, home to over 180,000 people. After visiting her housekeeper’s home in the favela, Leal was impressed by the sewing skills of the women but found they weren’t making any money from their work. She decided to found the cooperative in 1981 and start making quilts and pillows. By the early 1990s, the cooperative had attracted the attention of Rio’s fashion scene. And in 1994, it jumped into making clothes for the fashion catwalks. Fashion designers in turn taught the women advanced production skills and about fashion trends.

Today, the coop has established a hard-won reputation for quality and sells its clothes to the wealthy elite of Rio. Its success has led to contracts with major clothing stores, including Europe’s C&A.

“Creativity is an important tool for transforming people and raising their consciousness,” Leal told Vital Voice. “My great passion is beauty. Beauty has the capacity to inspire, to touch individuals in a more subtle way. For this reason, I like to make beautiful things with the artisans of COOPA-ROCA.”

Leal realized that most small businesses helping the poor fail despite their best intentions. They often make the same mistakes: they fail to produce high quality goods, they fail to do market research and understand who they are selling to, they fail to develop the skills of their workers, and most importantly, they fail to see that they have to compete in a global economy with lots of other enterprises. How many people have seen crafts and knickknacks for sale that nobody really wants?

Slum dwellers are on the increase across the South. As the world becomes a more urban place – and 70 million people move every year to the world’s cities (UN) – the growing population of poor women and households presents a dilemma: how to provide meaningful work so they do not fall risk to exploitation? Without work opportunities, women can feel pressured to turn to prostitution, or even be trafficked by gangs for work or sex. And women in slums experience greater levels of unemployment than those who live elsewhere (UNHABITAT).

Women now make up the majority of the world’s poor: 70 percent of the world’s poor are women, as are a majority of the 1.5 billion living on less than US $1 a day (UNESCO).

Established in 1981 from a recycling project for local children, COOPA-ROCA started with finding ways to use thrown away scraps of cloth to make clothing. It eventually evolved into a cooperative. It focused on improving traditional Brazilian decorative craftwork skills like drawstring appliqué, crochet, knot work and patchwork.

“COOPA-ROCA works with traditional handicraft techniques that are widely used by women around the world,” explains Leal. “As COOPA-ROCA works with fashion, and fashion is always linked with media, the COOPA-ROCA artisans inspire other women who recognize in themselves the potential to do the kind of work that COOPA-ROCA does.”

For its first five years, COOPA-ROCA concentrated on building the organization and the skills of the artisans. Once a production structure was in place, quality control workshops were set up to increase the quality of the products so they could compete better in the marketplace.

“Many social projects believe that money is the only resource required to begin their work. The COOPA-ROCA case proves that social organizations must use a more entrepreneurial vision to understand the concept of resources.”

The cooperative’s mission statement is to “provide conditions for its members, female residents of Rocinha, to work from home and thereby contribute to their family budget, without having to neglect their childcare and domestic duties.”

By doing this to a high standard, the profile and reputation of traditional crafts has been raised.

The COOPA-ROCA hopes the work shows others how they can increase income in poor communities. The cooperative has 150 members and has partners in the wider fashion and decorative design markets.

The women equally share responsibility for production, administration and publicity. While they work at home, they come to the office to drop off the completed pieces and pick up more fabric.

The success of the cooperative has led to donations of funds to build a new headquarters designed by architect Joao Mauricio Pegorim.

Despite the cooperative’s success, it is still not easy to work with partners. “There are many negative preconceptions about Rocinha and the people who live there, both within and outside of Brazil. COOPA-ROCA is consistently rejected when it applies for loans,” Leal said. “Furthermore, the cooperative’s commercial partners usually do not enter the favela themselves, and I must serve as a bridge between the two worlds.”

But Leal is still ambitious for bigger things: “I envision COOPA-ROCA expanding to include 400 women artisans, producing for commercial partners, selling their own brand in Brazil and abroad, and carrying out fashion and design projects in the new headquarters in Rocinha.”

Published: March 2010

Resources

1) The online service CafePress is a specially designed one-stop shop that lets entrepreneurs upload their designs, and then sell them via their online payment and worldwide shipping service. Website:http://www.cafepress.com/cp/info/sell/

2) Tips on how to start your own t-shirt business. Website: http://www.pioneerthinking.com/dy_tshirt.html And how to do it online: Website:http://www.ehow.com/how_2135779_start-network-online-tshirt-company.html

3) Once inspired to get into the global fashion business, check out this business website for all the latest news, jobs and events. Website:http://us.fashionmag.com/news/index.php

4) iFashion: This web portal run from South Africa has all the latest business news on fashion in Africa and profiles of up-and-coming designers. Website:http://www.ifashion.co.za/index.php?option=com_frontpage&Itemid=1

5) Kiva: Kiva’s mission is to connect people, through lending, for the sake of alleviating poverty. Website:http://www.kiva.org/

6) Betterplace: Is another great way to solicit funds for NGOs or businesses in the developing world. Website: http://www.betterplace.org

7) Viva Favela: The first Internet portal in Brazil. Viva Favela has a team made up of journalists and “community correspondents” – favela residents qualified to act as reporters and photographers. Website:http://www.vivafavela.com.br/publique/cgi/cgilua.exe/sys/start.htm?infoid=40489&sid=74

8) Women in Poverty: A New Global Underclass by Mayra Buvinic (1998). Website: http://www.onlinewomeninpolitics.org/beijing12/womeninpoverty.pdf

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.

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ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

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Indonesian Middle Class Recycle Wealth Back into Domestic Economy

Post author By David South Consulting
Post date 15/11/2022
1 Comment on Indonesian Middle Class Recycle Wealth Back into Domestic Economy

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The global downturn and economic crisis is now into its third year. Economic growth has dropped across the South, as the knock-on effect of shrinking credit and slowing global markets took its toll.

One solution to re-starting growth and building up domestic industries is to target local products at the existing middle class, which in turn grows the middle class by creating better paying jobs.

Globally, 2009 saw 70 million people join the emerging-market middle class, with incomes between $6,000 and $30,000. And 1 billion people are expected to join the middle class by 2020. It has been called “the story of the decade,” by Goldman Sachs’s chief economist Jim O’Neill, who forecasts their global spending power will outstrip the developed world in two decades.

Indonesia’s middle class first began to grow in the 1980s. But rising prosperity took a heavy blow with the Asian economic crisis of the late 1990s, when the currency was devalued, pitching millions of people back into poverty.

Even so, Indonesia’s middle class is estimated to be between 35 and 40 million people (out of a population of 230 million) and they pay out roughly US $750-1000 on monthly household spending.

They are a mix of people, including professionals in management, banking, accounts, specialized law, bio-technology, engineering and other areas – all skills needed to run the market economy.

Like members of the middle class around the world, increasingly affluent Indonesians forge their identity through consumerism and lifestyle. This desire for goods and services represents a huge business opportunity. Often, this is captured by large multinational companies with long experience of selling branded goods and services.

Indonesia, however, is having great success growing its middle class despite the global economic downturn by building up the domestic market. Millie Stephanie, the director of Indonesia Tatler Magazine, told the BBC that two-thirds of the country’s economy runs on domestic consumption.

New middle class housing is springing up around the capital Jakarta. Home ownership for many, unthinkable a decade go, is now possible as banks make more loans possible. This in turn feeds into more consumption.

By turning to local products – something the Indonesian government is encouraging by increasing its own spending on local goods and services in 2010 by US $21.32 billion, according to Industry Minister MS Hidayat – a cycle is created where middle class wealth creates middle class jobs in local companies.

The department store chain of Matahari (http://www.matahari.co.id/) – the largest local department store in Indonesia – is a good example. Eighty percent of the goods it sells are made in Indonesia. The store targets the middle class with products like jeans that Indonesians can afford. And this strategy has helped Indonesia to get through the downturn.

According to Widia Augustinia, who runs the PT Inti Garmindo Persada jeans factory, the company was able to triple production despite the downturn.

“In the last few years we kept getting calls from our clients saying they had sold all our jeans and they wanted more, so we had to expand our business and had to hire more people,” she told the BBC.

One of the factory’s workers, 37-year-old Miriam, has seen her salary increase annually over the last four years while she has worked in the factory. The increasing wealth means she can now educate her children and buy a TV and a motorcycle.

This matters when half the population are living on less than two dollars a day. This recycling of middle class wealth into the Indonesian economy is making more workers become part of the emerging middle class with the jobs created.

In Africa, the Aureos Advisers (http://www.aureos.com/) private equity firm specializes in investing in African small and medium size enterprises, and is having great success with it despite the downturn. Its niche is finding and investing in companies that sell quality local products.

Run by Sri Lankan-born Sev Vettivetpillai, it raised US $150 million in 2009 to invest in Africa, much of it from pension funds.

“That’s a large sum of money in a market where raising capital is tough,” he told The Guardian newspaper.

Leverage was a game when cheap debt was around,” he says of the old private equity market that went up in flames in 2008. “Today a large chunk of growth is in emerging markets and we have proved you can invest responsibly in these markets and achieve attractive returns while paying attention to building sustainable businesses.”

And the faith in small and medium-sized African businesses has been paying off despite the economic turmoil: since most of the companies have little debt, they have not suffered in the downturn. And since many do not export much to Europe or the United States, they have not suffered from the consumer slump.

“When markets crashed 60 percent, good management teams were making sure they had cash, not much debt,” said Vettivetpillai. “Most banks don’t lend to these SMEs. And that has saved a number of those businesses. So we had an upward lift in earning growth in 2008 when many people showed a drop.”

Published: March 2010

Resources

1) A paper from the University of Hawaii by Mohammad Hasan Ansori on Indonesia’s middle class. Website: http://tinyurl.com/ylq7nf6

2) The red dot logo stands for belonging to the best in design and business. The red dot is an internationally recognised quality label for excellent design that is aimed at all those who would like to improve their business activities with the help of design. Website: http://www.red-dot.de/

3) A video on designing for the middle class in emerging markets. Website: http://www.youtube.com/watch?v=-JLO1RuQIPw&feature=related

4) Product design strategies for emerging markets. Website: http://www.appliancemagazine.com/editorial.php?article=1633&zone=1&first=1

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Archive Development Challenges, South-South Solutions Newsletters Southern Innovator magazine

A Solution to Stop Garbage Destroying Tourism

Post author By David South Consulting
Post date 10/10/2022
No Comments on A Solution to Stop Garbage Destroying Tourism

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Tourism is an essential source of income for countries across the South. But many put that livelihood in jeopardy when they lose control of garbage collection. A popular tourist spot can represent a ‘paradise’ to visitors, but when it becomes too popular and local garbage collection systems collapse under the burden, ‘paradise’ can soon turn to an environmental hell.

The small, tourist-friendly Indonesian island of Bali (http://en.wikipedia.org/wiki/Bali) – known for its idyllic pleasures of spas, surf and serenity – is being overwhelmed by garbage. A survey of tourists found two-thirds would not return to the island because of the problem.

Tourism took off on the island in the 1970s. The economic benefits are clear: the island went from being economically marginal to ranking second only to the country’s capital, Jakarta, in wealth creation. The island received more than 2.38 million tourists in 2009, up 14.5 percent compared with 2008, according to Ida Komang Wisnu, head of the provincial statistics office. But tourism produces on average five kilograms of waste a day per tourist – 10 times what the average Indonesian produces (Bali Fokus).

In the past, the traditional way of serving food in Indonesia was to wrap it in, or serve it on, a palm leaf: a biodegradable approach. But with the huge expansion in use of plastics and non-biodegradable packaging, the waste disposal problem is out of control.

In Indonesia, government garbage disposal services tend to collect between 30 and 40 percent of solid waste, most of this from high income communities. The majority poor population are left to fend for themselves when it comes to waste disposal.

A solution by Yuyun Ismawati, an environmental engineer and consultant, has since 1996 focused on helping poor communities find ways to safely dispose of waste. In 2000, she started her own NGO – Bali Fokus (http://balifokus.asia/balifokus/) – and opened a waste management facility in the Bali village of Temesi. The recycling plant employs 40 people from the village, who sort garbage into recyclables, compost and residual waste. Income from the recycled waste and compost goes to helping local farmers.

She then expanded her concept to include households around Bali and elsewhere in Indonesia. She concentrated on housewives and targeted reducing the amount of household waste going to dump sites. A core team trains housewives in daily habits that separate waste and compost organic matter like vegetable and fruit scraps. Bali Fokus claims it has been able to reduce waste created by 50 percent in 500 homes. Some of the women sell their compost in local markets; recyclables are turned into sellable items.

From 2001 to 2003, Ismawati turned this approach into a replicable template called SANIMAS. By 2008, the SANIMAS template was being used in hundreds of communities across Indonesia.

Her solution to the deluge of tourist waste can be seen in the luxury Jimbaran Bay area of Bali. Traditionally, the area’s hotels would sell their waste to pig farmers. While the pigs feasted on the fancy scraps, the rest of the waste was put in plastic bags and thrown away in mangrove forests.

“I told hotels: Your job is to sell rooms, not to sell garbage,” Ismawati recalls. “We have to protect Bali or else tourists won’t want to come here anymore.”

Ismawati cleverly turned the relationship around: rather than a pig farmer paying for scraps, she convinced one of them there was money to be made recycling and sorting garbage. For this, the hotels would pay the farmer.

A network of 25 hotels now pays to have their garbage taken away and sorted by hand: an important source of full-time jobs.

The workers sort through paper, plastics, glass, aluminium, food scraps and vegetables. Each week, 140 trucks deliver waste to the facility. Only 10 leave with waste that has to go to a dump site.

Food leftovers are bought by local pig farmers and grass clippings and other organic matter is composted (http://www.recyclenow.com/home_composting/), and eventually makes its way back to the hotels and is distributed in the flower beds.

This system has created 400 jobs where the pig farmer once only employed 10 people.

“If you want a hi-tech solution in a developing country you will wait and wait and wait until you get the money, or big donors to fund it,” Ismawati told the Telegraph newspaper. “And even then it may not work.”

A graphic example of this is a donated waste recycling machine given by the local government. It can’t be used because the electricity to power it costs too much. Human labour is a cheaper option.

Bali Fokus’ successful approach has now been replicated in six other sites on the nearby island of Java. And the government of Indonesia has promised to help create 15 more each year.

In 2009 Ismawati won the Goldman Award (http://www.goldmanprize.org/), which honors grassroots environmental heroes from the six inhabited continental regions: Africa, Asia, Europe, Islands and Island Nations, North America, and South and Central America.

She is also working on using decentralized grassroots approaches to bringing sewage disposal and clean water to communities.

Published: March 2010

Resources

A guide to establishing recycling projects based on experience in Mongolia. Website: http://tinyurl.com/yfkn2dp
A video showing the problem of waste disposal in poor communities in Jakarta. Website:http://www.videosift.com/video/Garbage-ring-The-slums-of-Jakarta-Indonesia