The Alliance for Artisan Enterprise:

Transcription

1 The Alliance fr Artisan Enterprise: Bringing Artisan Enterprise t Scale The Aspen Institute Artisanpartners@aspen DRAFT FOR DISCUSSION Hundreds f thusands f peple in the develping wrld, largely wmen, participate in the artisan sectr. Fr many, their livelihd depends n incme earned frm their artisan activities. Behind agriculture, artisan activity is the secnd largest emplyer in the develping wrld. Yet, artisan enterprise is nt generally cnsidered a key driver f ecnmic grwth, nr lked t as a majr cmpnent f develpment assistance effrts. The depth and scpe f ecnmic develpment impact f artisan enterprises is ften nt fully appreciated. They generate incme, create jbs, fster ecnmic cmmunities, sustain ancient techniques, and preserve culture and meaning that is an essential cmpnent f healthy and sustainable develpment develpment that is grunded in the uniqueness f peple and place. And in cnflict regins, ecnmic cmmunity thrugh artisan wrk can prmte recnciliatin, healing, and empwerment. Gldsmiths in Benin, silk weavers in Thailand, embriderers in Afghanistan all struggle fr wrk that is real, that is used, that keeps ancient traditins and meaning alive, and that prvides needed incme fr families. A few f these artisan enterprises have achieved scale and becme viable and sustained industries Thai silk, Oaxacan painted animals, Afghan rugs but they are the exceptin, nt the rule; mst artisan enterprises remain small, undercapitalized, and niche in market reach and ecnmic develpment impact. What is the full pwer and ptential f artisan enterprise t develping ecnmies, cmmunities, and wmen entrepreneurs all ver the wrld? What is the ptential f a Beduin wman n a hillside in Jrdan weaving a traditinal rug n a lm f sticks and stnes? Artisan activities have a critical macrecnmic impact in develping cuntries that is ften underappreciated by gvernments. The glbal market fr artisan crafts is significant and cntinues t expand: during the perid frm , wrld exprts f artisan prducts rse frm a value f $17.5 billin in 2002 t $32 billin in 2008, an increase f 8.7 percent. 1 Develping cuntries have a cmparative advantage in this sectr due t their diverse cultural traditins, distinct indigenus designs and prducts, and lcal materials and resurces. 2 Accrdingly, develping ecnmies have cme t dminate the exprt 1 UNCTAD, UNDP Special Unit fr Suth-Suth Cperatin, Creative Ecnmy Reprt 2010, p Aid t Artisans, Building Prfitable Craft Businesses: Ntes frm the Field N. 4, p. 1. 1

2 market fr handicrafts, accunting fr 65 percent f wrld exprts in this sectr in 2008 (an increase frm 53 percent in 2002). 3 Accunting fr a significant exprt share in many emerging ecnmies means that artisan enterprises serve as a majr means f glbal jb creatin particularly amng wmen. Accrding t a USAID market assessment fr handicrafts, in many regins f the wrld, artisans cmprise the secnd largest sectr f rural emplyment after agriculture, ften functining as a default ccupatin fr thse wh have limited ptins fr emplyment. 4 The market assessment als ntes that artisan prductin carries inherent advantages fr its participants, such as the pssibility f wrking frm hme accrding t a flexible schedule and pprtunities fr seasnal emplyment and small prductin runs. Additinally, artisan prductin demands very little start-up capital, while at the same time allwing fr a high degree f autnmy in perating and managing a business. Several cnverging trends indicate that demand in the artisan sectr will cntinue t expand, including cnsumer and cmpany interest in surcing lcally prduced artisan gds, greater internatinal and dmestic turism, increased glbal interest in hme decrating, and increased willingness t pay a premium fr distinctive (as ppsed t mass-prduced) gds. Even as glbal demand plummeted and internatinal trade cntracted by 12 percent in the wake f the 2008 glbal ecnmic crisis, exprts f art crafts actually rse t $32 billin in 2008, a figure that is nearly duble its 2002 level. 5 Artisan prductin, therefre, hlds great ptential fr develping cuntries that seek t expand their exprts in a dynamic sectr f the wrld ecnmy. As nted in the Creative Ecnmy 2010 reprt, the prductin and internatinal trade f art crafts are vectrs fr jb creatin and exprt earnings, and therefre are feasible tls fr pverty alleviatin, the prmtin f cultural diversity, and the transfer f cmmunity-based skills. 6 Better integrating artisans int glbal cmmerce wuld increase the incmes and standard f living f many individuals and their families in the develping wrld, yielding micr-ecnmic benefits that, prperly scaled, culd cllectively transfrm the ecnmic landscape f certain natins as a whle. A UNESCO pilt prject,"handicrafts and Emplyment Generatin fr the Prest Yuth and Wmen," achieved impressive pverty reductin results by using small handicraft enterprise develpment t drive incme generatin and emplyment in a wide variety f cultural cntexts. A reprt summarizing the utcmes f this prject cncluded that the analysis f the prject results indicates that there are vast pprtunities available in prmting the crafts sectr as a way t eradicate pverty and imprve living standards. 7 Previus effrts t supprt the grwth f individual artisan enterprises have met with mixed results. Cmbinatins f prduct develpment, market access, business training, and capital are all needed by 3 Ibid. p Ted Barber and Marina Krivshlykva f Develpment Alternatives, Inc USAID reprt: Glbal Market Assessment fr Handicrafts. 5 UNCTAD, UNDP Special Unit fr Suth-Suth Cperatin, 2010, Creative Ecnmy Reprt, p. xxiii and p Ibid. p Nella Richard, 2007, UNESCO. Handicrafts and Emplyment Generatin fr the Prest Yuth and Wmen, p

3 small and grwing artisan enterprises. The delivery f these services has been perfected by an array f private and nn prfit rganizatins. The wrk is challenging and requires specialized expertise distances and cnnectins t vibrant markets are generally nnexistent r tenuus at best, prduct quality is ften pr, and prductin capacity is generally weak. Building capacity acrss prduct develpment, market access, and business develpment requires a diverse and intricate set f skills and aptitudes. Like the artisan enterprises themselves, artisan supprt rganizatins are ften small, wrk independently f each ther, and are nt well funded r recgnized. The untapped ecnmic develpment ptential f the artisan sectr makes a pwerful case fr establishing the Alliance fr the Artisan Enterprise. A grup f key individuals and institutins cnvened t cnsider ways in which an alliance wuld supprt, elevate, and expand the artisan sectr, with encuragement frm the U.S. Department f State s Office f Glbal Wmen s Issues. This discussin paper utlines prpsed gals, bjectives, and activities fr such an alliance in The Aspen Institute s artisanpartners@aspen has ffered t hst and facilitate the design phase f the Alliance fr the Artisan Enterprise, which will draw its membership frm amng leading artisan supprt rganizatins, crpratins, artisans, buyers, markets, philanthrpists, gvernments, and internatinal rganizatins. The prpsed gal f the Alliance fr the Artisan Enterprise is t supprt and grw artisan enterprises, t prvide best practice services t the rganizatins that supprt them, and t supprt the brader recgnitin f the imprtance f the artisan sectr t develpment and preservatin f cultural heritage. Prpsed Objectives f the Alliance fr the Artisan Enterprise are: T establish a frum fr artisans, artisan supprt rganizatins, buyers, and crpratins t share best practices, t brker cmmercial and capacity-building relatinships, and t increase the level f supprt and verall efficiency in the artisan supprt field (annual meeting, directries f rganizatins and artisan prducers, impact metrics develpment, member services) T launch a campaign and set f related activities t build awareness and braden supprt f the artisan sectr (assess need, audience, ptential partners, cnduct research t make ecnmic case, develp cmmunicatin messages) T hld ne t tw majr artisan frum events a year t supprt artisans and artisan supprt rganizatins and campaign bjectives (Aspen Ideas Festival, plicy events, majr marketing events, Internatinal Day f the Artisan) T establish a rbust website and assciated scial media campaign t disseminate artisan training and market infrmatin, t bring prducers and buyers tgether, and t creatively share case studies, stries, and best practices T establish a Crprate Artisan Cuncil t develp, establish, and prmte ethical practices and realistic crprate cmpliance standards, t develp new business pprtunities fr artisans, t explre value chain pprtunities, and t build n new market interest in hand made and sustainable prducts 3

4 T explre new artisan financing mechanisms t prvide access t artisan enterprises in achieving scale (prtfli f prjects apprach, scial impact investment nte, micrfinance rganizatin partnerships) Year One Activities: 1. Develp wrking grups t achieve bjectives, year ne activities, and develp and exchange sectrwide best practices. Including but nt limited t: a) Maintaining benefits f artisan wrk when grwing supply chains. Examples - wrking at hme, flexible scheduling, pprtunity fr seasnal emplyment, small prductin runs, prducer autnmy, jb creatin/incme generatin, exprt earnings, transfer f cmmunity-based skills. b) Addressing key challenges that inhibit artisans and retailers/brands. Examples - grwing artisan businesses, glbal market access, prduct develpment, business training, capital, scial respnsibility/ethical surcing, and knwledge f where t access specialized services, prduct quality, and prductin capacity. 2. Build an interactive website. Develp a cmmunicatins utreach strategy. Recruit initial members. Create an infrmatin hub fr anyne interested in the glbal artisan sectr. 3. Develp a scial media campaign that calesces arund a new glbal artisan brand (r perhaps an Internatinal Day f the Artisan). Integrate the scial media campaign with the Alliance s website. Link the scial media campaign t additinal resurces that cnnect cnsumers and buyers with artisan prducers, funders with relevant, high-value artisan supprt prjects, and artisans with marketplaces. 4. Cnduct r cmpile research t dcument the histrical and ptential impact f the glbal artisan sectr. Cllect examples f best practices. Publish infrmatinal materials n the Alliance website and disseminate them t interested grups. Build the visibility f the artisan sectr thrugh targeted media placements [and events utside f the artisan sectr]. 5. Hst events t share infrmatin, shwcase the artisan sectr, and facilitate access t markets and buyers fr artisans and artisan supprt rganizatins. These events will be practical and always lead t actual sales fr artisans. 6. Ppulate a netwrk f cntacts maintaining a gd balance f gegraphic regins, diversity f activities, and sectrs. Build membership structure in a demand-driven way that prvides real value t members and allws fr a menu apprach t services. 7. Appint a high-level Advisry Cuncil t build ut the funding visin f the Alliance, raise its prfile, and t mnitr its effectiveness. Identify 3-5 key issues facing artisans r the artisan sectr glbally tday and address these issues in Advisry Cuncil meetings and publicatins. 8. Establish a Crprate Artisan Cuncil with initial grup f leading crpratins currently wrking with artisans (Walmart, West Elm, Target, Macy s, Eileen Fisher, etc.) Imprtant issues t address include 4

5 but are nt limited t: respnsibly grwing artisan businesses, capital, scial respnsibility/ethical surcing (especially within hmewrking,) linkages with lcal expertise-specific rganizatins, prductin capacity, and prduct quality. Discuss and develp specific cllabratins such as: Identify creative, cst-effective ways t effectively mnitr wrking cnditins in hmewrking r infrmal supply chains, where businesses and purchase rders are ften small. Develp and make training available fr artisans n their rights. Develp training n ccupatinal health and safety fr wrkers. Identify lcal rganizatins affiliated with credible internatinal develpment rganizatins that have capacity t effectively cntextualize and deliver the training t artisans and cmmunity leaders via a train-thetrainer apprach. Develp a best-practice fr effectively determining whether a piece-rate wrker is at least making the equivalent f the lcal minimum wage fr hurs wrked and utput. Prcess and Organizatinal Cnsideratins The Alliance fr the Artisan Enterprise aims t gather leading practitiners, businesses and individuals in a cllective effrt that brings quantifiably greater benefits t individual members. As such, it will need t take the time t identify and assess ptential cllabrative membership and business mdels that culd sustain such an alliance in an effective way where value redunds t each member and clear gains are made by virtue f the cllabratin. We wuld prpse a planning perid where distinct cllabratin mdels culd be cnsidered hsted by a neutral party wh wuld be respnsible fr cnvening ptential Alliance members and mving the prcess frward in the design stage. We recmmend mving frward with design and prcess cnsideratins in a cllabrative way t explre the ptential f this pprtunity. Estimated Budget and Next Steps Once we agree upn the structure and frmatin f the alliance, we will frmalize a budget fr Alliance activities. The Aspen Institute has mdest seed funding that it is willing t cmmit t launching the Alliance and is hnred t prvide a venue fr its planning activities. 5