Rabha, an Anou artisan trainer, paid a visit to one of the cooperatives on Anou last week. Her goal was to show the cooperative Anou’s new desktop and mobile platforms. Though she was told all the women would be ready, only half the cooperative was present when she arrived.
Little did Rabha know that shortly after she scheduled her meeting the week before, the members of the cooperative had a huge argument. Apparently, a faction within the cooperative believed that the sales at a recent craft fair didn’t match up with the actual amount of product sold. Two members, tired of feeling that they were being shortchanged, quit working at the cooperative. The remaining members fought over who would attend the next craft fair. They eventually compromised and decided that two different members would attend the craft fair each day – even though cost of such a decision would certainly drain any profits the cooperative made.
If there is anything I’ve learned after several years of working in Morocco it is that a lack of transparency begets rumors and frustration, which then evolves into a distrust that slowly erodes the effectiveness of institutions in Morocco. Small cooperatives, such as the one described above, are not immune to this. Almost every cooperative or association we meet possesses huge amounts of potential, but the members’ distrust in each other always holds the group back.
This is the side of fair-trade that is overlooked. While fair-trade principles stress transparency, they rarely consider the transparency within the groups that fair-trade organizations works with. This is simply because many organizations do not work with artisans closely enough to know what is happening on an individual level. Organizations can transfer over the correct amount of money but after that, there isn’t much an organization can do in terms of transparency. How certain is the organization that their wire transfer will go to all the members of a group, and not just the president? Worse, how can they be sure their wire transfer didn’t just blow up a cooperative already paralyzed with distrust? Existing models of fair trade can’t answer these questions – it isn’t financially feasible for organizations to follow up with such detail.
At Anou, we’ve built a system that creates transparency rather than treating it as just another buzzword. When an item is purchased on Anou and shipped, the artisans’ payment is sent immediately into their local bank account. Anou sends a text message to the artisan group president or confirming the amount that has been deposited, along with the transfer reference number. We also send an e-mail and MMS with a copy of the transfer receipt. If the payment amount in the text is different than what is posted in the artisan’s account, we tell the artisans to call us directly so we can investigate the discrepancy.
However, we quickly realized this wasn’t enough, as it still didn’t address the transparency within the association or cooperative itself. When groups are fighting, they don’t post items on Anou, they neglect the shipment of products, or worse, they stop making products and close up shop.
This past week, we released a new tool that will finally address this. Now when an item sells, not only will the cooperative or association president be notified of the item that sold, but so will any artisan that helped contribute to making the item. In the text message sent to a contributing artisan, it will show the product ID number as well as the price that the item sold for. This way, every member that contributed to a product will know exactly how much it sold for. In line with Mohammed Yunis’ model of micro-finance, artisans will be empowered to hold each other accountable in a space of full transparency.
To bolster the effectiveness of this, Anou will periodically call up artisans to ensure that they were paid the amount that they were owed. If we notice a problem, we can simply decide to suspend an artisan’s account on Anou until the issue is resolved.
At the end of Rabha’s meeting with the fractured cooperative, Rabha reviewed this new exciting tool that would help create transparency within the group. The cooperative’s members were incredibly excited about the idea and couldn’t wait to use it. The most excited member? The embattled president who felt that with Anou she would be able to gain the full trust of her team and reach the cooperative’s full potential.