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a32 local
Monday 20 april 2020

THE economy opportunity of the moment

By Cdr. Bud Slabbaert A cottage industry should is produced in the home,
serve a market that seeks can be done in coopera-
ST. MAARTEN — In these dif- out original, handcrafted tion with several family
ficult times when we know products as opposed to members. It can be done
that economic hardships mass-produced, name while the baby is sleeping,
have to be countered and brand products. These or grandma is watching
solutions need to be found, can include anything from the kids, or it can even be
there are realistic opportu- clothing (maybe novel Ca- done by a grandma who
nities. There is one devel- ribbean summer fashion) normally would not be part
opment model that may be items to crafts (e.g. souve- of the workforce anyway.
the solution to contribute to nirs to be sold to tourists and The workers don’t have to
three needs that are impor- visiting guests) or decora- travel from home to work
tant under the current and tive home furnishings and and they can also spend
short-term circumstances: art. There as many possi- time for household tasks.
a desperate need for in- bilities as there is creativity, There are many variations
come when employment ambition, and passion. possible.
is not available, a corner-
stone for diversification of There is an opportunity for There is a hunger for for-
an economy and rejuve- recently unemployed per- eign investment. However
nating or strengthening the sons to turn a hobby into foreign investment also
middle class. a home business, or take means that the profits will
a skill acquired from their go abroad. Investment meet their common eco- and collecting the finished
It may come in two steps. previous job and go out on is usually seen as finance nomic needs through a goods. This would all be
The first step would be the their own in a different set- capital. It may be over- jointly owned enterprise. part of a co-op activity.
development of ‘home in- ting and take self-control looked that locations al- Cooperative businesses are
dustry’ or originally called of their path of life and in- ready do have their own typically more economic Don’t think low of coopera-
‘cottage industry’ and come. capital, human capital. resilient than other forms of tives. Ding-ding. There are
sometimes mentioned as Without having the human enterprise and have better 2.6 million cooperatives in
‘domestic system’. In some One advantage of the cot- capital available, foreign changes of success and the world creating over 250
forms it already existed in tage industry system is that investment may not be survival than start-ups of million jobs. Over one bil-
the 15th century. A cot- the workers can pursue possible. It may be wise to individuals. Cooperatives lion people are members
tage industry is an indus- their activity at their own look at things more from often have social goals of a cooperative! The larg-
try which includes people speed while at home. There the human capital per- which they aim to accom- est 300 coops in the world
working from their homes is a simple motive for being spective. Not to ignore that plish by investing a propor- have a turnover of USD 2.53
producing individual ar- more productive; it gener- depending on the size and tion of trading profits back trillion. Ding-dong.
ticles from raw materials. ates more income. What geography of a territory into their communities.
the cottage industry gives Cottage industries have al-
access a rural labor force A Cooperative is not just a ways played a significant
or a labor force that could union of the cottage work- role in the economies of
not fit into business employ- ers but also of people with developing countries and
ment models. It would also other skills that are needed were an important source
fit in the concept that em- and who would be encour- of employment. In the cur-
ployment should prefera- aged to join (e.g. adminis- rent and developing fragile
bly go to the local or native tration/accounting, mar- socio-economic situation,
islanders. keting/sales, purchasing). developed countries will
When the work is done at have to redevelop them-
Depending on what the home, the product would selves almost as if they
cottage industry intends to have to be brought to a were developing countries.
be producing it may less central place of business, or The model of developing a
depend on seasonal influ- marketplace. The products cottage industry combined
ences but rather focus on could be shipped to anoth- with a co-op organization is
year-round production ac- er market which could fur- a feasible solution that may
About the author
Cdr. Bud Slabbaert is the Chairman and Coordinator of tivities. ther export and inter-island be sustainable and have
the Caribbean Aviation Meetup, an annual results and trading in the region, which long-term benefits for an
solution oriented conference for stakeholders of ‘airlift’ in the The second step would be are also beneficial to an economy and its commu-
Caribbean which will be held June 16-18 on St.Maarten. Mr. to organize these cottage island economy (export- nity. And now be the right
Slabbaert’s background is accentuated by aviation business industry workers in a work- import balance). In a ‘do- time to pursue it, or at least
development, strategic communication, and journalism. ers-cooperative or co-op. mestic system’ travelling to be explored by govern-
In accordance with his study of Economy in his younger A Co-op is an independent agents or traders would ments in need of finding so-
years in Germany, he is authorized to carry the title of ‘State
Certified Economist’. association of persons who tour the home-workshops, lutions for the likely effects
are voluntarily united to supplying the raw materials of recession.q