From the Andes to Madison Avenue, guanaco and vicuña fibre trade & local livelihoods. Dr. Gabriela Lichtenstein INAPL/CONICET

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1 From the Andes to Madison Avenue, guanaco and vicuña fibre trade & local livelihoods Dr. Gabriela Lichtenstein INAPL/CONICET

2 Vicuñas and guanacos are among the few native large herbivores that inhabit deserts and high plateau grasslands in SA. They have been used by local inhabitants for 10,000 years + Suffered a severe decline following Spanish Conquest and the introduction of firearms and horses In the case of vicuñas this was mainly due to their fine fibre whereas in the case of guanacos, they were replaced by sheep.

3 Guanacos and vicuñas have one of the finest and rarest animal fibers that supplies the most exclusive European markets. Bring together both extremes of the social scale: the fibre is produced by low-income communities, while the manufactured goods are consumed by the wealthiest elites.

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5 Fibre is produced by extremely low-income Andean communities Generation of added value has historically not promoted by national governments Although goods made from vicuña fibre are sold at exorbitant prices, local people do not obtain significant economic benefits The market is small, closed and controlled by long established oligopolies Most of benefits are being captured by traders and international textile companies,

6 What are the barriers that limit a more equitable distribution of benefits along the commodity chain? Unfulfilled basic needs & disempowerment A deficient legal framework (e.g. uncertainty about usufruct rights) Lack sufficient governmental support in terms of financing, propoor policies and capacity building Lack of proper community representation at international fora (e.g. Vicuña Convention or CITES) National regulatory barriers that impede exports. Limited accountable national or regional institutions in charge of commercialization Remotedeness, large distances, isolation

7 What are the barriers that limit a more equitable distribution of benefits? Lack of information about prices paid to other producers or countries places producers in a poor negotiating position Lack of international commercialization skills Limited generation of added value at regional level

8 Challenges ahead Moving from trade as usual to fair trade schemes that increase the producer s share of total retail value; Strengthening producer associations and creation of social enterprises; Capacity building for commercial engagement; Improving information exchange (e.g. prices, potential buyers) between countries and among producers Promoting the generation of added value at national and regional levels; Developing a market for handicrafts using legal fibre; Securing tenure over land and usufruct rights over vicuñas; Empowering local communities and improving political capabilities; Creating networks of partners with NGOs, universities, research centres, and donors; Developing policies that tackle market failures, improve market access and ensure that markets work for local communities (instead of the communities working for the market)

9 Aim To improve the socioeconomic situation of a cooperative of pastoralists via the development of the commodity chain for guanaco fiber To generate jobs in the rural area to avoid outmigration Salinillas

10 Built a Mill in a remote area, imported and adapted machinery to process fine fibres; trained Cooperative

11 Lessons learned The importance of a favourable policy environment. The project could not have been implemented without the support of the national government and all the public institutions that are aligned in promoting inclusive pro-poor policies. The importance of creating networks, alliances and support groups in the implementation of projects. Social processes in order to create robust, accountable and democratic institutions are longer than projects The wealth of interdisciplinary outlooks To be open minded and creative to enable resilience Small is beautiful

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