The Bolivian Battle Over Used Clothes

Readers:

Those of you living in the U.S. might occasionally wonder – What happens to all those used clothes I left at the Goodwill or to a local collection drive? Well, at lest some of those clothes have ended up in the middle of a political firestorm here in Bolivia, where sellers of used clothing and local manufacturers are locked in heated battle over proposals to limit or ban used clothing imports. Just this week another large march of angry clothing makers wound its way through the streets of Cochabamba.

It is a complex issue and a "poor vs. poor" battle that is taking place not just in Bolivia but in other impovershed nations around the world, over clothes and other basic needs as well.

In this special Blog post we bring you both a written report on the issue and a video featuring testimonies from the various perspectives. You can see that video (5 minutes in length) by clicking the screen here. The video is part of a new series the Democracy Center will be producing: Five Minute Documentaries. We hope you will share this post with friends.

You can see it by clicking the screen on this post or at YouTube here. The Blog post was written by two Democracy Center volunteers, Liza Minno Bloom and Derek Minno Bloom. The video was produced by the Democracy Center's Aldo Orellana along with Liza (narrating) and Derek.

Jim Shultz


The Bolivian Battle Over Used Clothes

Written by Liza Minno Bloom and Derek Minno Bloom

Across much of Bolivia the streets are filled with protests and counter protests over an issue that pits one group of low-income workers against another – the sale of cheap used clothing from abroad.

There have been protests and counter-protests in the cities of La Paz, El Alto and Cochabamba, over the last few months, since President Evo Morales announced that the government will start to enforce a decree that severely restricts the import and sale of used clothing. The decree by the President is similar to one Morales issued last year limiting the import of older used cars.

On one side, manufacturers of new clothing and many of their workers are protesting to demand that the decree come sooner and be more severe – an all-out ban with severe penalties. They argue that the flood of imported used clothing is destroying an important local industry, and with it badly-needed jobs.

On the other side vendors of used clothing are protesting the decree, one that virtually guarantees to put them out of work in an economy where jobs are scarce. Tensions between the two are high.

With U.S. trade preferences under the ATPDEA agreement with Washington, for more than two decades Bolivia has benefited from access to U.S. markets. And the industry that has benefited most has been textiles. Last year, in the midst of political battles between the Bush administration and Morales, President Bush suspended Bolivia’s participation in those trade preferences, bringing to new pressures to bear on Bolivia’s domestic market for those products. Domestic makers of clothing that that market is being choked by the ever growing practices of importing, smuggling and selling used clothing here.

A recent study by the Bolivian Institute of Foreign Trade (IBCE)-confirms that Bolivia lost $512 million—that could have stimulated the internal production market—between 2000-2005 as a result of the import and sale of used clothing. The Federation of Factory Workers reported, additionally, that this activity has resulted in the loss of 56,000 jobs in the textile and clothing industries.

Since the used clothing market is essentially “grey”, an informal sector, there are no official records of sales, however, an estimated 35,000 tons of used clothing cross the Bolivian border annually, representing $34 million in sales. A remarkable 93% of that used clothing is contraband and crosses the border without paying a tax—the vast majority entering through the Chilean border.

To ease the transition away from those imports, the Bolivian government is offering a 650 boliviano monthly stipend (the equivalent of $90) for used clothing vendors to live off of while they shut down their operations. The vendors have, by and large, rejected the offer, calling it insulting, and have even threatened to withdraw their support for Morales in December’s general election.’

The government tried the same plan last year—giving money to vendors of used clothing to transform their businesses into new productions. The plan failed miserably: “Very few actually benefited from the program,” said Ramiro Lizondo, Deputy Minister of Micro and Small Businesses, “85 percent of the vendors took the loan to continue marketing used clothes; only 15 percent converted their businesses into productive activities.”

But so far the government is standing firm in its plan. In 2007 Morales “banned” used clothing from being imported into Bolivia—becoming the 32nd country to do so in order to protect native industry and later issued a decree aimed at implementing that ban. Lax enforcement, however, has done little to diminish the stockpiles of imported clothes – which from nearly new designer jeans to stained and tattered t-shirts that sell for under a dollar. Now Morales has pledged to start enforcing the ban, catalyzing the intensified protests on both sides.

The micro clothing manufacturers, many of whom work out of their homes or small factories, are appealing to Morales´ idea of a “Dignified Bolivia”, a cover-all phrase that he’s used since his electoral campaign.

“It's impossible to think that we can be dignified if, in the name of poverty, we wear clothing that has been thrown out in another country,” a Bolivian vice-minister told the Associated Press back in 2007

Morales himself is Aymara, an indigenous culture in which it is considered bad luck to wear someone else’s clothes. In discussing the ban he has called on memories of Bolivia’s rich history of textile weaving and craft and urged more national production. In his first meeting with world leaders after being elected in 2005, he sported a (now infamous) Bolivian-made, striped sweater, in place of the conventional suit.

The reality remains, however, that the sale of used clothing accounts for an estimated 250,000 jobs in a country constantly battling climbing unemployment rates, and helps to keep the majority of Bolivians clothed. A Bolivian-made shirt may sell for around $8.00, while it’s possible to buy its used U.S. equivalent for about 60 cents. In the poorest country in South America, where 40 percent of the inhabitants live on less than $1.25 a day, most people simply cannot afford the “dignity” of new clothing, as much as they may want to. Ironically, that sweater that Morales wore was made from acrylic, not the traditional alpaca, which is too expensive for most Bolivians, and is now sold mainly to tourists.

Yet, according to the IBCE, the majority of people who buy used clothing (2/3) are middle class; 30 percent are poor and four percent are wealthy. Manufacturers point to this as evidence that used clothing is stealing costumers, people who could potentially afford new clothes.

As long as there are cheap used clothes available, however, the market share for Bolivian-made clothes will continue to suffer. Manufacturers are forced to fire employees for lack of business and they attempt to leverage losses by raising prices—essentially forcing people, even middle class people, into the cycle of opting for cheaper used clothing.

The government has its work cut out for it in terms of finding a solution that meets the needs of the citizens: those who manufacture new clothing for a living, those who sell used clothing for a living and those who buy used clothing out of necessity.

The accompanying video was produced by Aldo Orellana, Liza Minno Bloom and Derek Minno Bloom.