Monday, March 19, 2012

Focus Topic: Trade in Used Clothing


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How would you feel if you had to get your clothes from the flea market? How about if that was your only practical choice because of income constraints or because of distance? And what if you had to purchase underwear from there too?

I came across a short article in the Stylist a couple of weeks ago in their “elsewhere” section in which they briefly discussed this subject. The article spoke about women (and men) potentially putting themselves at risk by purchasing and using used underwear. For this very reason the Zimbabwean government has just brought in a new law that prevents such sales due to health and safety concerns, following in the footsteps of Ghana who implemented such measures in 1994.

As a woman, it is a chore sometimes to go out and buy underwear. I tend to go to my good old favourite, M&S. It’s been tried and tested, I know their range, I know it will fit and I know that I won’t need to spend valuable time trying on – that is just pure hassle. But even then, there are sometimes I go into the store, during sale periods of course, and I don’t find my size. Now just imagine what some women in developing countries must be facing! In amongst the piles and piles of clothes, they must rummage for something suitable. I’m sure not much thought goes into whether they should get the matching pair or not.

I am uncertain if I fully agree with the ban. I understand the welfare reasons behind it, but it will have different impacts on the different groups in society. The individual traders who once made a living from this source must now find alternative means and women who genuinely do not have the means to purchase new wear will now be left worse off. In addition I agree with this line of argument:

As rational agents, we aim to maximise our consumption based on our budget constraints. Therefore if second hand clothes come in at cheaper than their local substitutes, demand will respond accordingly (Source: Unknown).

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The international market for second hand clothes is large. Some estimates show it to be worth more than $1 billion a year making up 0.5% of the total value of trade textiles. This industry’s success has correlated with the decline of the once prosperous sub-Saharan African textiles industry. The rise of the second hand market has not been the main cause of this decline, there were other contributing factors including major structural policy changes, the introduction of the Multi Fibre Agreements (MFA) and increased liberalisation of the market which brought competition from Asia.   
Nevertheless, second hand clothes will for the time being at least remain on the scene in sub-Saharan markets. In some instances residents have shown a preference for second hand clothes because they are of better quality (perceived or otherwise) and cheaper than the imports received from China. The decline of the textile industry means that at present only about 5% of cotton produced on the continent is transformed into a form of textile. The rest is exported.

Sources:
Baden and Barber (2005), The Impact of Second Hand Clothing on Developing Countries, Oxfam

Wednesday, March 7, 2012

Focus Topic: Artisanal Mining


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More than 50 countries in the world are classified as “resource rich” by the IMF and yet 1.5 million people in these countries live on less than $2 a day. Although there are many financial benefits to be gained from the extractive industries, in most cases these gains have not filtered down to the average citizen, the people that need it most. Africa as a whole and the countries within it, are particularly susceptible to the “resource curse”.

There are two sides to the extractive industry: 1) the industrial side operated by large multinationals and machinery and 2) the artisanal or small-scale miner. In the first instance, despite the fact that the large industrialised companies operate most of the sector and own most of the land, reports have shown that in some instances they employ few nationals.

For many countries, artisanal mining (ASM) is of great significance. In Sub-Saharan Africa, ASM directly employs over 10 million people (Global Briefing Magazine). Many studies have shown that ASM has an important role to play in poverty alleviation especially because of the number of people it employs (Reports include “Global Report on Artisanal and Small-Scale Mining” from the International Institute for Environment and Development). However, it tends to not have such a good reputation because of the environmental costs and poor health and safety standards. With limited enforcement of environmental regulations and inadequate protected access to land, the priority for subsistence miners is to make ends meet rather than protect the environment.  The challenge therefore for many governments and agencies alike is how to secure the benefits for poverty reduction.

Artisanal Mining Operations in Africa,May 2010 

Country
Location/Name
Owner/Operator
Angola
Luali River Area
Gold
Burundi
Murehe
Tin
Burundi
Murehe
Tungsten
Cameroon
Various Locations
Diamond
Cameroon
Various Locations
Gold
Central African Republic
Bandas Greenstone Belt
Gold
Central African Republic
Bangana Area
Diamond
Central African Republic
Bogoin-Boali Greenstone Belt
Gold
Central African Republic
Bria Area
Diamond
Central African Republic
Carnot Area
Diamond
Central African Republic
Kotto Area
Diamond
Central African Republic
Quadda Area
Diamond
Chad
Mayo Dala Department
Gold
Congo – Brazzaville
Kellé, Covette-Ouest Department
Diamond
Congo – Brazzaville
Likouala Department
Diamond
Congo – Brazzaville
Yangadou, Sangha Department 
Diamond
Congo – Kinshasa
Kasaï Occidental Provinces, in Bandundu Province, at Bafwansende and Kisangani in Haut-Congo Province, at Lubutu in Maniema Province, at Kota-Koli, Yakoma, and Gbadolite in Equateur Province), in Nord Kivu Province, and at Luozi in Bas-Congo Province
Diamond
Equatorial Guinea
Aconibe, Coro, and Mongomo
Gold
Ghana
Birim Valley
Diamond
Madagascar
Mananjary
Emerald
Madagascar
Andilamena and Vatomandry
Ruby
Madagascar
Ilakaka and Sakara
Sapphire
Morocco
Errachidia, Figuig, and Ouarzazate 
Barite
Niger
Liptako Region
Gold
Nigeria
Dutse Nkura
Tin
Nigeria
Jos Region
Nitrogen, Tantulum
Rwanda
Cyangugu
Sapphire
Rwanda
Nyungwe Forest
Gold
Zambia
Eastern Province 
Beryl
Zambia
Iteshi Teshi; Mumbwa
Citrine
Zambia
Kalunga Wbeba, Hofmeyer 
Tourmaline
Zambia
Katete
Aquamarine
Zambia
Kitwe
Emerald
Zambia
Siavunga
Garnet
Zimbabwe
Gwanda
Gold
Zimbabwe
Kamativi
Tin

References: