The Chainsaw Buyback Program: Creating Entrepreneurs
When learning about development as a University student in Switzerland, we are often focusing on the question of how to develop countries’ economies. The link between economic prosperity and the health of a community is a key aspect of why development is geared towards economic growth. Despite that, in many cases, the focus on the economy has been seen to hurt the community. Compared to the rest of the world, Africa and Asia have the highest share of GDP from agriculture. This dependence on agriculture to pursue economic growth has many consequences.
In Indonesia the export crop that is most prevalent is Palm Oil. According to the Observatory of Economic Complexity (OEC), Palm Oil makes up the largest category of food and animal production related sectors at 42.3%. Problems related to palm oil are extensive environmentally, socially, and economically. One significant problem is that most of the palm oil production process is orchestrated by large companies, and thus the profits from this industry do not reach the community. Therefore, projects that comply with the Western development model centered around capitalism, leave the community behind, in worse economic condition than before.
One solution found in sustainable development literature is the incorporation of the community through microloans. Microloans are often traced back to the establishment of the Grameen bank. The simple idea behind microlending is to give ownership to the worker so they can buy the materials they need to produce their products, allowing them to set their own price. Oftentimes the loans are very small amounts and they allow for the creation of new jobs, entrepreneurs, and the empowerment of women.
The chainsaw buyback program at ASRI is a very similar concept to microloans executed in a particularly effective and empowering way. ASRI buys chainsaws from ex-loggers to provide them with some financial support to start a new business. With ASRI the ex-loggers buy what they need for their new business with ASRI. They can spend 4 million Indonesian rupiah (IDR) and loan another 6 million IDR that they will pay back over two years in monthly increments of 250,000 IDR. This also allows for ASRI to monitor the progress of the new businesses on a monthly basis.
Some of the businesses pursued by the ex-loggers are organic farming, retail stores/grocery stalls, beekeeping, fishing, and other small business enterprises. This allows them to support themselves and their family through a relatively safe and stable income as opposed to the many risks of illegal logging. Plus, there is more time to spend at home with the family and in general the switch of livelihood provides a much higher quality of life.
Further, local entrepreneurship also benefits the community. One member of the chainsaw buyback program, Amri, became a beekeeper. He was able to start his business at his house by making and installing beehive boxes for the bees that already visited this area. Amri sells his honey from his house and the community can buy locally sourced honey from someone they know. Another member of the program, Busri, has spent the money from the program on maintaining an organic farm to grow fruits and vegetables to provide for his family and the community. With the development of farm businesses there is also a need for workers to plant, manage, and harvest the crops, providing employment opportunities within the community.
Read also: Transforming Clearings into Canopies: ASRI’s Reforestation Efforts
The chainsaw buyback program allows for a smooth economic transition for community members while protecting and improving the health of the environment and the community. The ability of participants to choose what business they want to pursue gives them autonomy over their future and instead of risking their lives by logging, they can fill whatever need they see in the community. Additionally, through the program they learn many important business skills like checkbook keeping and how to allocate finances.
The chainsaw buyback program is an example of how development within communities has to be interconnected and by considering the intricacies of the relationship between the environment and the community, both can flourish. At first there was some apprehension from loggers to join the program but now there is a waiting list of loggers who want to join. As for those who take part in the program, the two we met were excited and proud of their new businesses.
