Showing posts with label value added. Show all posts
Showing posts with label value added. Show all posts

Free Online Slide Presentation By "Secondhand" Author Adam Minter (Courtesy Massachusetts DEP)


Massachusetts DEP held a second Reuse & Reduce Workshop online this month. Dozens of state and local and institutional recycling officials were invited to watch a 40 minute presentation by Adam Minter, author of Secondhand: Travels in the New Global Garage Sale.

The 45 minute presentation is now posted online, no charge. It's one of his best, thanks in large part to Star Wars references* on repair in other galaxies. But it's special to me for his nods to Chendiba Enterprises, Good Point Recycling, and WR3A.

Adam starts out by telling the truth about Guiyu, China (predicted here in our 2008 ("Big Secret Factories"), 2009 and 2010 critique of CBS 60 Minutes "Wasteland"), and 2011 blog tipping the hat to TechTravels (which showed the chip reuse I was shown in 2005's trip to Asia with Craig Lorch).

He ends by telling the truth about Accra's slum and scrapyard, Abogbloshie, in Ghana. And the third party interviews and experts he relies on are Chinese and African. And the math adds up, it does not completely fail prima facia the way Greenpeace and BAN.org's "80%" math did.


Adam Minter's photo of technician repairing a screen in an Accra importers repair shop. #righttorepair

The Fireworks Economy, Part 1: Burning Wire Adds No Value

European and American NGOs and Regulators who are entranced by the flames at Old Fadama's "Agbogbloshie" scrapyard have three main boogeymen.  Many argue that sales of used goods should be banned to Africa based on public concern over three "questionable" practices:

1) Burning Wire
2) Breaking CRT Tubes
3) Circuit Boards

So many documentaries have now been filmed with close up camera shots of each of these, that we receive RFPs that ban our company from doing work unless we promise not to do business with Africans.  As someone who lived in Cameroon for 30 months in the 1980s - and is still in touch via Facebook with my landlord from the small town of Ngaoundal there after 30 years - this "segregation" of business distresses me greatly.


Value Added By Recycling Industries in Massachusetts (1992, Robin Ingenthron) - What John Tierney Failed to Learn about Garbage

Value Added By Recycling Industries in Massachusetts (1992, Robin Ingenthron)

This is kind of a hoot.  Dr. Josh Lepawsky found a paper I wrote my first months in the job at MA DEP, 30 years old, 25 years ago. It got Boston Globe front page coverage because of ricochet.   A loud PIRG vs. Plastic Packaging Industry referendum fight had thrust "recycling" into a spotlight, and the value of "recycling" rather than the packaging policy itself, was occupying the center stage.  Critics of the referendum were attacking state recycling policy, and proponents of the packaging laws were wrapping themselves in recycling like it was mom, apple pie, and the American flag.

To defend recycling as a policy, I tried to explain that there aren't "good markets" and "bad markets".  There are "buyers markets" and "sellers markets", and from an economic perspective, the paper mills, glass furnaces, metal refiners, etc. were adding more value than "waste diversion" from landfills.  So I got some secondary data on the recycled paper mills etc. that I'd supplied as a recycling collector, added up their employees, and explained the multiipliers.

The paper doesn't do so explicitly, but buried in it was my first realization that paper mills might be worse "neighbors", environmentally (odor, water effluent) than an incinerator or landfill, but they created so many jobs that the neighborhoods surrounding those mills were advocates.  Environmental enforcement was linked, geographically, to real estate value.  Likewise, those same jobs, which would disappear in Massachusetts if the tissue paper had to be made from trees, were far more important economically than the value of a ton of paper at a recycling center.

I was initially accused of writing the paper to influence the referendum (and threatened, professionally). I responded that the paper mill employees and those like me who'd been driving paper recycling trucks were kind of bemused... I might next leak the number of laundromats in MA and see if that got in the Globe.  And four years later, this paper was called upon to rebut John Tierney's "Recycling is Garbage" rant, which in part arose out of the very anti-recycling statements being made during the Packaging Referendum Wars (which employed many Bottle Bill Battle generals... history for another blog).

Anyway I long ago lost track of the paper, Josh found it at the MA State House library.




Value Added By Reuse, Repair, Recycling and Mining

Not much value added (wikipedia anti-art)
My epiphany came sometime between my experience in Cameroon Peace Corps, my ~5 year term as a truck driver / consultant at Earthworm Recycling, and my MBA at Boston University.

VALUE ADDED

I realized that the recycling I was dedicated to was preserving value once added to rocks by mining and smelting them, value added to trees by cutting and cutting the bark off and bleaching them to fiber.  I realized that the Africans I met who were fixing stuff discarded by others were, with their intellects, capturing added value.  I realized my grandfather in the Ozarks was preserving otherwise depreciating added value by fixing expensive stuff like car engines rather than discarding them.   I realized the "Hillbilly Highway" between poor places and rich cities was a two-way street, with value of labor flowing out and value of devices flowing in.

The dirtiest recycling is cleaner than the cleanest forestry/mining/extraction.
The dirtiest repair is cleaner than the cleanest recycling.

Geographical relocation of devices has to do with the value of the "value added".  In America, I could save $100 by keeping my smart phone or my CRT display just a year longer.  But at a certain point, $100 isn't worth the deferred satisfaction.  That economy is a privilege, which may be earned or may be inherited.

Someone in a poor country may not have that privilege.

The $100 I forgo is 5% of total annual household income for 3 billion people.

Here is what a printer looks like going through a shredder.



Now, the shredding pretty much ruins the plastic.  When the prices of metal is high, that's more than worth the cost of manual disassembly.  When the price of metals falls (as is the case the past 18 months), the value of the plastics becomes relatively important, and the price of labor to hand dismantle the devices becomes more salient.

Liability takes away from added value.  So NGOs are funded by industries that provide less Value Added in order to impugn reuse or recycling industries which have an advantage in adding value.  Effectively, the value of your "stuff" depreciates faster when it crosses a national border.




DELTA: IMF, Botswana, Bullyboys, Tinkerers and Liberal Bubble-heads

One my flight back from the EU, I had the good luck to find myself seated next to a young woman from Botswana.  I learn she's a student of economics (probably) returning for her sophomore year at a very selective small women's liberal arts college in Massachusetts.

BotswanaAs my twins are just starting college life, we had a lot to chat about in the beginning, about the cost of USA tuitions and fees, financial aid, and jobs.  My wife teaches at Middlebury, and (I'll call her Mosta, a pseudonym) knew the Cameroon program my wife set up and was considering applying for next year.  Mosta described her father as a retired road construction engineer, and her mother ran a nursing program at a Botswana hospital.

Botswana Africa is considered one of the most democratic and least corrupt countries in the sub-sahara, though Mosta and I quickly agreed that it was a low bar.  She knew the term "resource curse".  Botswana is home to diamond mining (and not much else), and reliant on raw materials contracts.  She understood and agreed with my "development" theory.   Nations whose path to wealth was mainly tied to being somehow related to someone with the sharpest elbows inside a bureaucracy which controlled foreign access to those raw materials.  The curse of natural resources lies in the bullyboy culture within the governments who find themselves awash in cash from resource contracts but don't have much of a private sector in other home businesses.