Showing posts with label good enough markets. Show all posts
Showing posts with label good enough markets. Show all posts

Elective Upgrades Supply Good Enough Markets

Elective Upgrades Supply Good Enough Markets

Is imitation the sincerest form of apology?

There is a guilt dilemma in "First World" aka "Wealthy" aka OECD consumer markets.  While there are repair and delayed gratification reuse trends (my company sells about $25k per month worth of TV parts to USA repair shops), there is also a lot of guilt about "elective upgrade", which remains the driver of most new sales.

Organizations like Basel Action Network and Greenpeace made a false assumption about 2 decades ago that "e-waste" was a product of equipment failure and inability to repair. That Americans, Japanese, South Koreans, Germans, Brits and Italians patiently wait for their CRT televisions, flip phones, and Pentium 4s to become hopelessly unrepairable before buying a plasma TV, smartphone, or i-Series laptop. 

The fact that it is patently obvious to nearly everybody that it was not the case, in hindsight, has been a point of reflection of this blog since I started it in 2006. 

Unnecessary elective upgrades, if indeed they are discarded as "waste" (or sentenced to a desk drawer, attic, or file cabinet) are indeed a wasteful use of mined, refined, extracted raw materials. But if they are reused, they create access for poor people to establish a "critical mass of users" to justify investments in TV broadcast, internet cable, and the estimated 170,000 mobile phone towers today that connect the continent of Africa... all financed by secondhand flip phone sim cards, replaced by black technicians on streets like Lagos, Accra, and Kinshasa.


It's a story older than this bad head gasket... sold to a Cummins motor geek in Florida, who re-exports trucks to rapidly emerging markets. Roads were paved in Appalachia and Ozarks by hillbillies like my grandparents, who could only afford vehicles they were smart enough to buy and fix.

Earth Day 2014 - Searching for Africa's Bobby Fischer



Happy Earth Day.  If you have all day to read environmental blogs, I suggest a revisit to 2010s "Capacitor Heroes".  If you don't understand the last decade's capacitor plague and the good enough markets that replace bulging caps, you won't understand the economics of the export market.  IFIXIT gets it.  StEP and Interpol, I'm afraid, may not understand how supply and demand work, at least not well enough for a good cost-benefit analysis on exports.  

What drives demand in Guiyu?  Chip harvest and reuse.  You can "externalize pollution costs" much closer, in Haiti or west Texas.  Externalized pollution is real, and is a concern, but it's almost never the economic driver of the person paying for the product.

We need to listen to demand, and study it.