Breaking the scenic but monotonous 40-minute boat ride that usually accompanies our return trip from Chipaota, Lucia (a Peruvian who has been of invaluable help to both us and our partner Rainforest Partnership) enlightened us a bit on how our work here will be sustainable. Our discussion was exciting, and I will try to summarize some of it here.
First off, what are we doing here?
The native inhabitants of Chipaota (and the surrounding area, including Chazuta) are classified as living in extreme poverty, a classification that is largely measured by economic means. The work ethic is striking here because despite their situation, never once was I accosted for a direct handout. Instead, people sell what they can, from opening bodegas with meager supplies to selling you cardboard for a sol or two to pad your motorcycle.
Chipaota’s ethic is no different, and so we are here to give the native inhabitants tools for a new livelihood. Specifically, we are helping two groups improve their respective businesses. One group is the “Piassaba broom-making group;” the more established of the two, they’ve already begun work setting up the business and creating plans for management, accounting, and growth. The other “artisan group” makes baskets and other crafts out of reeds, natural dyes, and other materials. Much less far along, this group has still made good progress in their planning stages. For now, I’ll discuss the former further.
What is the Piassaba broom-making group?
Traditionally, the Chipaota inhabitants have either sold meager profits from their farms and perhaps harvested Piassaba fibers from the forest trees and sold them by the kilogram wholesale, the latter being an illegal practice in Peru without proper documentation. Adding the costs of boat fares for the fibers, land transportation, and paying off police to let them pass, the inhabitants are left with little of their revenue, and so they do it all over again.
The broom-making project is different. About 40 inhabitants in Chipaota created the broom-making company within the last few years to try and sell their brooms. Each broom is made with a wooden handle called the “palo”, a wooden “taco” at the bottom, and piassaba bristles. While bristles come from the fibers of the piassaba tree, the Peruvian government regulates such products differently because they are products with “added value,” meaning effort changed them into something functional, aesthetically pleasing, etc.
And what of the wooden parts? The question is complicated. It is not our intention to give a business to the inhabitants so they can deforest their home in a few years. However, we got a clue as to how the whole system can be sustainable. Traditionally, inhabitants have used a 2-field crop rotation system every 10-15 years to regenerate nutrients in the soil. Each time they move to the other field of the forest, they must cut down the trees that have re-grown there and plant their crops. The inhabitants have no tools to truly make use of these trees, and so they often go to waste; instead, we could provide the tools so they can use the trees for the brooms without viciously creating a system of deforestation. Whether the wood can sustain the company for 15 years is an unanswered question that will need scrutiny.
So how does the company help the community?
The company itself may not seem to benefit the entire community as a whole, but in fact it does. First off, instead of selling the fibers illegally to other cities in Peru, inhabitants can sell fibers directly to the company. No middlemen or government bureaucracies are involved, and the people get to keep a higher portion of their revenue. Secondly, the management plan makes provisions for growth so that people can join the company later and take a share of profits in a dividend-like system. Naturally, more will be demanded of the latecomers to compensate for the work the original founders are putting into the company. Thirdly, the company will likely bring jobs to the community, and finally, the plan also makes provisions so that a portion of profits comes back to the community towards projects that benefit everyone: better schools, better equipment, and a better lifestyle. This last part is most exciting because free trade certification requires just that: a community improvement plan. Such a title would help the business greatly.
Recently, the broom-making group purchased land to start work with a factory, a motorized saw for woodworking, and a machine for broom making, which should be ready this week. The artisan group has plans to buy a plot of land on Tuesday, and work has begun to plan their building, design a logo and brand name, and create a business strategy. Things are picking up fast, and more updates will come as we have them!