Craft - PowerPoint Presentation

Slide1

Craft Sector and Exclusion:Posers for Learning, Innovation and Sustainability

Keshab

Das

Gujarat Institute of Development Research, Ahmedabad

keshabdas@gmail.comSlide2

Thematic FocusSDG Goal 8: “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all” Sub-Theme (Goal 8.3): Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.Slide3

The ContextRural craft-based enterprises contribute to local income and employment generation in a substantive manner and being often local craft and material based these have served as workshops of innovation. In a manner, these rural enterprises have played a role in dissuading distress-driven rural to urban migration.The severely inadequate policy attention to various constraints facing rural enterprises has serious implications in terms of their growth and survival. These enterprises are facing challenges of upgrading product quality, access to wider market, multi-skilling labour, accessing credit and adequate business infrastructure, and protecting the environment.

That education – whether formal, non-formal and informal – remains the key driver to enhance opportunities in lifelong learning and livelihood pursuits particularly concerning the less-privileged people and regions has been widely recognized. In times of deepening of globalization trends, the complex challenges of survival and growth facing the micro, small and medium enterprises (MSMEs), especially in rural areas and small and medium towns can be and have been addressed through broadening the sphere of access to education (as broadly envisaged here).Slide4

Forms of Exclusion faced by Craft EnterprisesSpatial > Challenged by geography (Poor natural endowments; distances; weak infrastructure) Sectoral > Disadvantaged by specialization (Products/services/skills no longer in demand; low earnings; dwindling raw material sources; absence of innovation) Systemic

> Marginalised by institutions (Dysfunctional/discriminating agencies, policies, practices and norms of the state and/or society, formal or informal)

Seasonal > Constrained by occasion (Periodicity of raw material availability, production or demand) Slide5

Share of Village Industries in Gross Bank Credit, 1995-2013Slide6

Official Statistics on Artisan EnterprisesThe Census of Handicrafts affirmed that artisanal activities were predominantly carried out in the unorganized sector and were spread over all states. These were mostly located in rural areas with 78.2 % units and 76.5 % artisans working in these units. As high as 96.27 % of

the artisans worked at the household level.The distribution of crafts in terms of proportion of artisans involved included Textiles (58.4%); Cane & bamboo (12.5%); Straw, grass, fibre & leaf (6.4%); Clay & ceramics (5.5%); Wood (5.5%); Metal (3.7%); Leather (2.9%); Glass (1.0%); Stone (0.7%); Ivory, bone, horn & shells (0.6%).This

sector has been an important source of employment and income to millions of artisans across space, in all probability, second only to agriculture.While reliable official statistics on this sector, unfortunately, is unavailable, as per the first Handicrafts Census of 1995-96, Gujarat had 1,41,970artisans (of which 89% were home-based) and going by the estimates of the Crafts Council of India (based on

Census of India 2001

) the figure was 13,90,000 in 2001. Hence, it is possible only to assert that the number of artisans has clearly risen about 10-fold between 1995-96 and 2001 and the figures may have risen during the last decade and half or so

.

Official statistics on clusters, particularly, artisan clusters are problematic. Slide7

Attempts at Alternative EstimatesThe subsequent comprehensive attempt to estimate the number of people involved with handicraft and handloom activities in India was undertaken on behalf of the Crafts Council of India, Chennai during the period 2009-10 to understand the nature of information available to enumerate the crafts population using large scale secondary data sources. In April 2013, in the Lok Sabha the then minister of state for textiles replied that "The census of handicrafts artisans is now in progress... The government has engaged reputed agencies to complete the census of artisans.” An indicative estimate of number of artisans for 2010-11 was 68.86 lakh.In the Economic Census 2012

an ‘artisan’ has been classified as a person (a) engaged in the craft for 180 days or more and (b) directly responsible for the sales of the product. Results are awaited.The

statistical exclusion compounds the vulnerability of the artisans as even the available policy benefits would not be reaching the unregistered artisan.Slide8

Artisan Cluster Focused SchemesScheme of Fund for Regeneration of Traditional Industries (SFURTI) Launched in 2005-06, through SFURTI artisan clusters, within five years, were to be i. Made competitive with market-driven, productive, profitable and sustained employment for traditional industry artisans and rural entrepreneurs; ii. Strengthened with the local governance systems of industry clusters, with the active participation of the local stakeholders, so that they are enabled to undertake development initiatives by themselves; and iii. Enabled to build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public- private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional industries.  Ambedkar

Hastshilp Vikas Yojana (AHVY)

 AHVY, launched in 2001-02, has its main thrust on a projectised, need based approach for integrated development of potential handicrafts clusters with participation of the craft persons at all stages of implementation of the scheme with the ultimate objective of their empowerment and hence sustainability. The scheme envisages a package of support to the cluster of handicraft artisans, which inter-alia includes basic inputs and infrastructure support in addition to capacity enhancement to cater to target markets, including global.Slide9

The Terracota Cluster in Molela, Rajasthan About 50 households of

Kumbhar caste engaged in this craft enterprise, that is some 400-year old. The work is entirely manual, although minor changes in the process has been attempted.Slide10
Slide11

Limits of Innovations in Products and ProcessesParticipating in exhibitions and fairs, products changed to theme tiles, three-dimensional articles and toys as customers desired.

They started adding paints. They plan to invest in machines to mix mud in large quantities faster

and go for diesel /electricity based ovens. But there are constraints of raw material, demand for the product and marketing.

Slide12
Slide13

State and InnovationAlthough

Molela terracota

craft has been recognised

under GI , the

craftspersons

have no clue of it, except that a group of people from Chennai had come there in November 2010 and made them fill forms on GI, but nothing has happened afterwards. The same craft has been copied using cement as the raw material by some entrepreneurs

in Agra and they seem to enjoy a good market.

Slide14

Prices of Articles

Rates of articles vary according to quality of work and size; generally 1 feet tile work cost Rs.600-800 . Toys cost from Rs 20 to Rs 200;

Ganesh

statues cost between Rs.30 to Rs 600 depending on size and design. Once old, products generally do not sell. Subcontracting practices are limited.

Slide15

The Raw Material CrisisAs brick kilns have come up on the river banks, mud availability has been reduced. The industry might face serious crisis soon.Slide16

Bamboo Craft Cluster, Barpeta, AssamThe craft was introduced with innovations by a Master Craftsman, an MA and trained in Tripura. He created a group of 15 expert artisans, through whom the expertise has now been transferred to more than 1500 households, mostly Bangla speaking Muslims.Wages are much above those offered in nearby Kayakuchi clusters.

The activity has now expanded to 6-7 surrounding villages. The cluster has a good identification with bamboo furniture and handicraft activity, through which it has created linkage with North East Handloom and Handicraft Activity (NEHHDC), for which it is a major supplier. Through participation in exhibitions, they have also developed regular trade linkage which provides them with consistent year round market orders. Besides, a handicraft showroom has now been opened in Bangalore, which also attracts orders for the village.Slide17
Slide18
Slide19

Innovation ConstraintsIt is important to identify the driving forces and understand functional dynamics of innovation systems in rural clusters in India to critically assess if these have been inclusive/pro-poor, mainly in terms of access to available options in progress in innovation be that technological, organizational, market-related and institutional.What are the determinants of the absence of an innovative ethos in rural clusters? What constrains innovation in Method-Material- Applications?Has weak Market-Institutions-Infrastructure

acted as disincentive to innovate?Or, the nature of innovation at the grassroots (for artisanal enterprises at least) is largely a

livelihood-centric issue?Slide20

A Comparison of Major OVOP and OTOP FeaturesOVOP

OTOP

Basic Approach (Self-reliance and Creativity)

‘

Intrinsic

’ (Community revitalization through leadership formation, not just product upgrading).

Close interaction with local community

regarding

labour

use, material use and conservation, design and marketing.

‘

Extrinsic

’ (Promotion of local entrepreneurship through product upgrading).

Broad consultation with both local community

and outsiders regarding labour use, material procurement, design / processes and marketing.

Markets and Product Promotion

Focuses on ‘

Only One

’ product (local treasure).

Caters mostly to

local, regional and national markets

.

Promotes products through participation in product fairs and by selling through

widespread retail network

(OVOP Co. Ltd., antenna shops,

Tokiwa

departmental stores and other local shops across the province and the district.

Highlights ‘

Number One

’ product (branded OPC – OTOP Product Champion) and also obtains government certification.

Targets

urban and foreign markets

.

Promotes products through a

variety of channels

, e.g., Thai Airways, Thailand Post, Lemon Farm, Lotus, and

BigC

. It also organizes product fairs and has opened several OTOP stores across the country.

Contd…Slide21

A Comparison of Major OVOP and OTOP FeaturesOVOP

OTOP

Policy / Administrative Aspects

Local, prefecture level policies guide activities

, which are coordinated by the OVOP Promotion Council; there is no national level ‘overseeing’ body.

Funding is raised through various sources

, including government schemes, local companies, cooperatives, etc. However, private sources dominate.

Forms

part of the national policy

(driven by poll promises) and is highly hierarchical and centralized. It has administrative and sub-committees at various tiers of government.

Financial support is

mainly through national government

sources (including

royal projects

) and sub-national level

organisations

and private sources.

Networking and Inter-dependence

Prefecture government plays a complementary, supportive role, only when required.

Private sector remains an active partner

in most spheres.

Community performs an effective networking role between the prefecture government and the producers

.

Central government conducts the primary and detailed activities, including contacting the producers.

Private sector’s involvement is partial or dissipated

.

Community has limited ‘

sectoral

’ role

, mostly sidelined.

Source: Based upon

Kabuta

(2007)Slide22

The Cluster Grid:A Proposal for Broad-basing Policy Operationalisation

Fully computerised system (portal) of dynamic and

interactive database.

Based upon /

operationalised

with

unique ID

(Identity Code) by cluster.

Can be accessed and effectively used by:

Specialised

service providers, policy makers, entrepreneurs, traders, bankers, voluntary agencies and researchers worldwide.

Offers much scope for cooperation between Asian

and other economies

.Slide23

Cluster Grid-I (Identification)Unique Identification Code

%

Sector

Space

Support System

Market

Informalization

Macro Policy

TechnologyLevel

Location

Regional Policy

Infrastructure

Own Groups

Other Clusters

Spcialised Agencies

L /R / N/G

Lb

T

RC

L / N

H / Lw/ Nl

R /Tn / C

A

P

Transport

Power

List

List

List

Major Products:

Emergence / History:

Turning Points:

Notes: L- Local, R- Regional, N- National, G- Global, Lb- Labour, T- Technology, RC- Regulatory Compliance, H- High, Lw- Low, Nl- Nil, Ru- Rural, Tn- Town, C- City, A- Active, P- Passive

Source: Author’s conceptualization.Slide24

Cluster Grid-II: (Intervention/ Initiatives)

Unique Identification Code

Sector

Space

Support System

Credit

Technology

Marketing

Trade/ IPR

Infrastructure

Entrepreneurship

Regional Policy

Groups /

Associations

Related Clusters

Specialised Agencies

A

P

Existing Policies:

Existing Database:

Notes: A- Active, P- Passive

Source: Author’s conceptualization.Slide25

Scope for Learning, Innovation and Sustainable BusinessSeparate policy-oriented and field research based studies of MSMEs, enterprise clusters (in rural and urban areas) and handicrafts in several Indian states have underscored the adverse implications of serious lapses in learning, innovation and competence building in India’s MSMEs. The absence of institutional innovation in revitalizing entrepreneurship and accessing/creating wider markets through broad-basing education and skilling has not just been a bane to boosting gainful and decent job creation but also could potentially stymie inclusive growth to the poor’s disadvantage.A key learning, particularly, from the east and south east Asian countries (including, China, Japan, Thailand, Philippines, Malaysia and Indonesia) and a few African nations (including Kenya, Tanzania, Nigeria, Ghana and Uganda) has been the efforts at

identifying relevant sources of knowledge

devising

effective strategy of dissemination through skilling, training and

sharingSlide26

Elevating Crafts through Knowledge Inputs This has resulted not only in reviving a host of traditional and/or languishing enterprises but positioning their products at higher echelons of high-earning markets including the international. The exposure of local MSMEs to knowledge about a large and varied demand has implied product diversification (often using the same human and physical resources at no major additional cost) through multi-skilling and cross-learning exercises. That these forms of learning and innovation have been possible through close interaction with peer entrepreneurs and mastercraftspersons (often through ICTs) have been well documented. A second set of skills (often termed soft skills) extremely pertinent in conducting small business relate to gaining knowledge in managing finance, comprehending procedural aspects of exporting or patenting or obtaining certification for product/process standards, accessing several business development services (BDS) and even linking with similar business/cluster associations elsewhere. Entrepreneurial education in this important sphere of conducting business through building up networks holds the potential to improve product quality through responsible (sustainable) business behavior and would ensure fair price to the consumer as well.Slide27

Policy Lessons for Artisan ClustersWhile there need not be any dispute as regards preserving and encouraging traditional skills and crafts, at a regional or macro- policy plane, enhancing the enterprise’s access to a larger--new and existing--market must form an important concern. It needs to be recognized that creative destruction is necessary in the handicrafts sector so that artisans diversify to cater to the contemporary changes in tastes and requirements. As Chatterjee (2014: 17) points out, “The challenge therefore is not one of market threat but rather fostering the capacity of artisans to negotiate effectively with the market, and effectively protect their own interests within a situation of constant change and unrelenting competition”.

While clusters can be the focus of such interventions innovative elements in policy must address intrinsic challenges facing craft activities. It would be important to classify crafts broadly on the basis of type of constraints faced. These could be (i) raw material-centric (in terms of, for instance, dwindling supply, or, cheaper alternatives being available threatening the craft); (ii) market-centric (inability to access potential higher echelons of costumers); and institution-centric (that is if due to their informal status these are excluded from the benefits made available through formal institutions, mainly, state agencies).Slide28

Rethinking Crafts as Sustainable Livelihood OptionsWhile numerous instances of crafts and their survival point to the phenomenon of what we term as subsistence industrialisation there is much hope for revival and promoting the traditional knowledge and vision for a sustainable production. As ideated by Catherine Odora-Hoppers that indigenous knowledge systems need to be recognized, promoted, protected and integrated into the mainstream, deeper thinking awaits intervening in crafts in crisis, in particular. Slide29

Defining CraftsUNESCO/ITC Symposium, Manila, 1997 broadened definition:“Artisanal products are those produced by artisans, either completely by hand, or with the help of hand tools or even mechanical means, as long as the direct manual contribution of the artisan remains the most substantial component of the finished product. These are produced without restriction in terms of quantity and using raw materials from sustainable resources. The special nature of artisanal products derives from their distinctive features, which can be utilitarian, aesthetic, artistic, creative, culturally attached, decorative, functional, traditional, religiously and socially symbolic and significant.”

As DC (Handicrafts), Ministry of Textiles conceptualises:“Handicrafts are mostly defined as items made by hand, often with the use of simple tools, and are generally artistic and/or traditional in nature. They are also objects of utility and objects of decoration.”

There are several non-traditional craft products which may be included as artisan products as well.