Economic
Development
Handicrafts play a significant role in Tibet’s rural economy. TAI
believes the can play a larger one.
As part of TAI’s commitment to poverty alleviation, economic
development is one of the core components of the project’s
agenda. Due
to the economic constraints placed upon artisans and villages throughout
Tibet, many cannot compete with the influx of less expensive handicrafts
being produced outside of Tibet.
TAI
is working with Tibetan artisans and villagers to create
economically sustainable means by which Tibetan-made handicrafts
can be produced more inexpensively, and thus create more
job opportunities for unemployed people.
TAI’s economic development strategy is broken into three
components:
1)
Artisan Training
2) Micro financial and enterprise loans
3) Cooperative development
As
part of its commitment to bottom-up development, TAI conducts
ongoing training throughout Tibet. Training
includes improved production techniques, business management
training, and
design training. Training comes in the form of workshops
and ongoing one-on-one training. In order for training
to be successful, it must be conducted on an on-going
basis.
Furthermore,
in order to ensure that the lessons that are taught are
also adopted, a marketing component is included.
After artisans have received training, selected products
are sold through Dropenling. Thus, the artisans learn
first-hand that quality sells.
Micro
Financial and Enterprise Loans
One of the Key methods for improving Tibetan artisan’s access
to market is improving their access to capital.
In working with Tibetan artisans, TAI has implemented a revolving
micro-credit fund that allows:
1)
TAI to purchase from artisans in advance, and
2) Artisans to apply for small loans in order to improve their
business
TAI
is currently involved in a purchasing scheme that immediately
provides artisans with increased working capital. Rather
then taking goods on consignment, TAI purchases the majority
of products directly from artisans on an outright basis.
This stimulates both production and quality.
In
2005, TAI will move into the second phase of its micro-finance
program and begin issuing micro-financial loans to artisans
throughout the Lhasa municipality, and Lhoka and Nachu
prefectures, so that artisans may improve their business
operations. This loan system will also be open to rural
villagers so that they may begin handicraft production.
Loans will be administered through the Tibet Poverty Alleviation
Fund, which currently operates and administers other micro-financial
projects in those areas. Loans will be accompanies by basic
business training courses and product development training.
Cooperative
Development
One
of Tibet’s richest assets is its handicraft tradition.
Handicraft production has long been a large component of
its everyday existence. In rural Tibet, handicraft production
is alive and well through the weaving of nambu (yak wool),
production of colorful vests to transport bricks, weaving
of traditional rugs, and various other crafts.
The development of cooperatives allows these rural communities
the ability to capitalize on their traditions, and in turn, create
barriers of entry for imported goods and economies. This allows
communities to continue their traditional way of life while increasing
their basic level of income.
The
TAI approach to cooperative development is simple:
Within a rural community, TAI works to identify local craft producers
and identify potential leaders within that group.
In areas where saleable handicrafts are being produced, TAI provides
additional training and skill development in order to improve the
quality of goods and increase production capacity.
In
areas where there are no saleable handicrafts, but the
components for specific handicraft production are in place,
(such as. spinning wool for sweaters), TAI will arrange
for skills development in a specific product area.
Participatory
development is an extremely crucial component of co-op
development. During these initial stages, TAI works to
organize the handicraft producers into the beginnings of
the co-op, assisting them in deciding the structure, leadership,
and products.
Once a co-op is organized, TAI provides the necessary working capital
and access to credit. Through Dropenling Handicraft Development
Center the co-op gains access to both a point of sales, and Dropenling’s
artisan resource center, which provides artisans with the necessary
market research on handicraft trends, business and financial management,
and cooperative management.
The ultimate goal of TAI’s co-op development initiative is
the development of a cooperative union, which will allow co-ops
to organize education, training and business activities together,
including joint marketing and bulk purchasing schemes.
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