The Informal Economy
There are two types of economies in the world, the formal and
informal. Activities that have market value and would add to GDP or tax revenue
if they were recorded define the informal economy (Delechat & Medina,
2020). Around the world, the informal economy employs more than 60 percent of
the world’s employed population (International Labor Office, (ILO) 2018). The
informal sector is found in all economies but may be more prevalent in
developing countries. The artisan sector is usually a part of the informal
economy because most artisans do work on their own and sell their items in
local markets. My project and research seek to investigate how the artisan
sector is being used to weave broken communities together and, more specifically,
how artisan cooperatives are being used to help empower one of the most
marginalized groups worldwide... women.
Around two billion workers worldwide spend part of their time
employed in the informal sector (Delechat & Medina, 2020). The informal sector
makes up to 50 to 90 percent of the labor force in developing countries
(Delechat & Medina, 2020). More specifically, in Africa 85.8 percent of the
employed population work in the informal economy (ILO, 2018). The informal
economy acts as a safety net for those groups that lack education or other
access to financial or public services (Delechate & Medina, 2020). On
average informal firms are one-quarter as productive as those operating in the
formal sector. This is due to characteristics such as educational attainment,
less experienced, and smaller in size (ILO, 2018). Informality means lack of
social protection, decent working conditions, lack of access to capital, and a
multitude of other problems (ILO, 2018).
The artisan sector is dominantly found in the informal economy.
Developing countries have a comparative advantage in the artisan sector because
of their vast cultural heritage (Indego Africa, n.d.). Women with some unique
advantages dominate the artisan sector. Women in many culture are in charge of
crafting items like baskets, mats, or creating other art that has cultural
significance. They are already well equipped to continue building off of those
talents they possess. Many artisans can
work from home or close to it, and artisans may find seasonal employment, which
contributes to many of them falling into the informal economy. Artisan products
also have low startup capital but still allow for greater control or autonomy
over the business (Khalid, 2019). Many products made by this sector have
cultural ties to the area. Being able to market these culturally viable
products across the world is something many local artisans are seeking. When
groups come together and make consistent products, women can market those goods
to greater audiences. Gaining connections to international markets or groups
expands artisan’s ability for economic gain.
The Land of a Thousand Hills
Rwanda, the land of a thousand hills, is a place one cannot
help but be in awe of. You may be at 4000 feet one minute, then over 5000 feet
the next. Kigali is set amongst these many hills found in Rwanda. In 1994 the
country of Rwanda was ravaged by a 100-day genocide. Over 800,000 individuals
lost their lives, and thousands of others were displaced, experienced violence,
and witnessed things many people would never believe was possible (History,
2019). Ethnic tensions between Hutus and Tutsis had been going on for decades.
Things finally came to a breaking point when President Habyarimana’s plane was
shot down on April 6th 1994 (History, 2019). Over the period of 100
days, horrible things happened across Rwanda. Many individuals lost their
lives, and today, the country and its people are still haunted by what happened
in those 100 days.
Women were heavily targeted during the genocide. If they were not
killed, many of them were sexually tortured and raped. There was a severe
population shift after the genocide with 70 percent of the population being
woman in 1996 (Kamdar, 2019). The trauma these women have gone through is still
present today. There was a severe population shift after the genocide with 70
percent of the population being woman in 1996 (Kamdar, 2019).
I had the opportunity to work with two different artisan
cooperatives in Kigali. I first visited with Sister Gabby (name has been
changed) and her cooperative in Kigali. Cooperative Future is an artisan
cooperative of women who previously sold fruit on the street or some other form
of informal work. Sister Gabby’s cooperative employs 11 different women but
because of Covid restrictions only six work from the workshop location while
the others work from home. Those working from home are young mothers and must
stay at home to watch their children. All experienced horrible things and lost
multiple family members during the genocide.
One thing that I love about Africa is gitenge (African fabric). I
have a problem and its being obsessed with everything gitenge. Walking into the
workshop, your eyes cannot stop seeing so many bright colors, patterns, and
beautiful items crafted by these women. Cooperative Future acts a place for
women to come together and learn how to sew and then apply those skills by
making beautifully crafted items. One can find in the shop anything from a
simple napkin to a beautifully crafted quilt made of African gitenge.
During my time with Cooperative Future, I built relationships with
the five women who were currently working at the workshop. My research focuses
on artisan cooperatives' impact on women empowerment and the transition to the
formal economy. I did a few different activities with the women of Cooperative
Future while I was with them. Using participatory action research, I asked the
women questions that gave me a better understanding of what life was like
before the cooperative and what life is currently like. I had a few activities
that measured food security, self-confidence, and financial security. For the
remainder of the time, I sat with the women observing and asking questions
while taking some photos. With Cooperative Future, it was fascinating to note
the significant differences in how the women felt before being a part of the
cooperative and how they currently feel.
I gained an even more profound respect for how Cooperative Future
has enabled the women who work for it to transition from the informal economy
to the formal sector. While talking with the women who mainly use treadle
sewing machines (non-electric food peddle machines) they asked if I knew how to
sew. I explained to them that my mom was big into sewing and that I had only
played on her electric one a few times. They wanted me to learn how to sew, and
this so far was one of the most rewarding experiences of my trip. They luckily
showed me how to operate the treadle sewing machines and had me try it out on
some small piece of fabric. I successfully made a napkin and only had to
unstitch it a few times. Sister Gabby even gave me a nine out of ten. After my
struggles of sewing a straight line and finally making a napkin, I have a much
greater appreciation for these women’s work. I understand all of them started
somewhere, but they are so quick and flawless now in making the various items.
My admiration for those working in the artisan sector worldwide
has grown so much. The skills and talents they possess to craft such beautiful
works of art is something the average consumer does not fully understand when
purchasing. Some of these crafts are traditions that have been around for
decades. Beyond the cultural ties, these crafts have to the people involved,
the roots of such traditions go deeper. Some of these traditions are social
events for communities or places to dialogue to understand one another better.
While visiting Cooperative Future, I saw how the women interacted
with each other. They have all experienced great heartache and sorrow but have
a spirit of joy about them. They were always talking and laughing while
working. Sister Gabby told me that they even council together and talk about the
things they experienced in 1994. By talking about those issues, they have been
able to have greater mental health and properly grieve with the women they see
as friends. The women have expressed feelings of fulfillment and less
loneliness.
I then went to Cooperative Heart which was initially a women’s
group that was formed to teach women in the neighborhood how to read and write.
Around 50 women work at this cooperative, and they work in the artisan sector,
making African gitenge items and baskets. My translator and workshop
facilitator connected so easily with many of these women. Sitting and talking
with these women helped me understand more about their daily lives. The
craftsmanship and skill they have continued to amaze me. They also expressed similar
frustrations to me about feeling alone and lacking confidence in themselves.
After finding the cooperative, they have now come to a place that gives them
purpose and meaning.
This was an overview of how I have seen these artisan cooperatives
transform women from the informal economy to the formal economy. I will further
expand on some of the impacts these women in Rwanda have come to experience
while being a part of these cooperatives in my next blog.
References
Delechat,
C., & Medina, L. (2020). What is the informal economy. International
Monetary Fund: Finance and Development. https://www.imf.org/external/pubs/ft/fandd/2020/12/what-is-the-informal-economy-basics.htm
History
(2019, September 19). Rwandan
genocide. https://www.history.com/topics/africa/rwandan-genocide
Indego Africa. (n.d.). Improving livelihoods and building
sustainable artisan businesses in a new context. Mastercard Foundation. https://mastercardfdn.org/indego-africa/#slide16
International
Labor Organization (ILO). (2018). Women
and men in the informal economy: A statistical picture. https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_626831.pdf
Kamdar, B. (2019,
April 12). 25 years after the genocide- Quota, power and women in Rwanda. The
Wire. https://thewire.in/world/25-years-genocide-quota-power-women-rwanda
Khalid, A. (2019, January 7). The untapped economic development potential of the artisan sector. The Medium. https://medium.com/@akeel.khalid/the-untapped-economic-development-potential-of-the-artisan-sector-ccfbd6690a58
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