Wednesday, 11 January 2012

Just Change - a community led initiative

Just Change is a community led initiative that seeks to regain power in markets by directly linking porducers, consumers and investors in a network that is mutually beneficial

From an article that appeared in The Hindu Business Line.

Why should growers and consumers suffer while companies profit?  An organisation that aims to Just Change all that

Food prices are spiraling upwards, yet farmers are committing suicide.  Why?

Over 25 years ago, ACCORD an NGO that worked with adivasis in Ooty, began a tea planting programme. Outsiders had cheated them of their land. They helped the adivasis out of poverty. Malnutrition levels dropped. 

In 1990s tea prices crashed.  However, tea prices in shops remained as high. Just Change was started a decade ago, to fight for the rights of the poor farmers and consumers.  The idea was conceived when they realised that the saris woven by Gudalur adivasis were being sold for Rs 250/- while the weavers received only Rs 75/-  They earned double when they sold it directly.  And with the surplus cash, they bought tea from Gudalur at half the price it was sold in Madurai.  They sold it to family and friends at a profit, but still at a cost lower than the market price.

It was learnt that tea was sold at Glasgow at a fortune compared to the Gudalur price.  And tea was exported to the UK.  Soon Gudalur tea was moving to different parts of the UK, Germany and other parts of India.  And soon the idea spread to other products like chilies and spices and to other states of Orissa and Gujarat.

Lord Joel Joffe of the House of Lords, UK a brilliant and successful businessman and philanthropist advised them to bring in ethical investors.  He funded Just Change UK for a year.

This was further developed by Stan Thekaekara, the founder of Just Change.  He floated the idea of Participative capital.  When money is in the hands of poor people, it flows out of the hands like water to pay for essentials.  But the minute it moves from the consumer, just one step up to the shopkeeper, it changes status and becomes capital, enabling him to increase business and make more money.  Yet, all this money comes from the poor people.  Their participation in the economy brings them very minimal returns .  A very unfair system that keeps them poor. 


Just change, makes the capital become participative.  Each person's contribution is recognised. The economic community consists of both the producers as well as the consumers.  All are equal partners. 


Just Change hopes to be a household world soon.  


Read the full article here and visit the Just Change website. 

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