Technical Assistance Consultant’s Report

Project Number: 48206-001 Regional—Capacity Development Technical Assistance (R-CDTA) January 2018

Promoting Gender Equality and Women’s Empowerment (Phase 2)

Prepared by Emerging Markets Consulting Phnom Penh, Cambodia

For the Asian Development Bank

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. CURRENCY EQUIVALENTS (as of 1 Jan 2018)

Currency Unit – kyat (MMK) MMK1.00 = $0.000739 $1.00 = MMK1,354

NOTE{S}

In this report, "$" refers to United States dollars. An analysis of the potential market for goods made from recycled materials -Findings

“A background study prepared by EMC for Future Cities Future Women Initiative activities in Mandalay: ADB TA 8797 - REG”

EMC, Jose Vahl JAN 2018

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ABBREVIATIONS

ADB Asian Development Bank FCFW Future Cities Future Women Initiative FCP Future Cities Program FGD Focus Group Discussion GDP Gross Domestic Product KII Key Informant Interviews MCDC Mandalay City Development Committee MUSIP Mandalay Urban Services Improvement Project NEED Network for Environmental and Economic Development NGO Non Governmental Organisation TOR Terms of Reference WTTC World Trade & Travel Council YCDC Yangon City Development Committee

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Contents 1. Background to the study ...... 5 1.1 Future Cities, Future Women ...... 5 1.2 Purpose and methodology of the assignment ...... 5 1.3 Data Collection ...... 6 1.4 Structure of the report ...... 7 2. The Supply Side ...... 7 2.1 Waste ...... 7 2.2 Waste collectors ...... 9 2.3 Recyclable materials ...... 10 3. The demand side ...... 13 3.1 Tourists ...... 13 4. Comparable handicraft products (competition) ...... 16 4.1 SWOT Analysis of Recycled handicrafts ...... 21 5. Conclusions ...... 22 5.1 Possible Future Direction ...... 23 5.2 The Business Canvas for Mandalay recycling...... 24 5.2.1 Handicrafts (Bags / Wallets / Storage / Jewelry) ...... 25 5.2.2 Skills training ...... 27 6. ANNEXES ...... 29 6.1 Annex: terms of reference ...... 29 6.2 Annex: list of key informants ...... 31 6.3 Annex: MCDC waste collection model and challenges ...... 34 6.3.1 Annex: MCDC housing and informal sorting area at Thingazar Creek ...... 35 6.3.2 Annex: the largest collector of recyclable materials in Mandalay city...... 36 6.4 Annex: Travel & Tourism – further details ...... 37 6.4.1 Annex: WTTC and the contribution to GDP ...... 37 6.4.2 Annex: Travel and Tourism in Myanmar compared to region ...... 38 6.5 Annex: small tourist survey – more details ...... 41 6.6 Annex: recycled products (worldwide internet examples) ...... 42 6.7 Annex: Yangon – description of comparable recycled handicraft enterprises ...... 45 6.7.1 Annex: Yangon – product pictures of recycled handicraft products ...... 47 6.7.1 Annex: Yangon – description of Retail outlets of recycled handicraft products ...... 49 6.7.2 Annex: Yangon - other handicraft production ...... 51 6.7.1 Annex: Mandalay – product pictures of traditional handicraft and retail outlet ...... 52

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6.8 Annex: Thailand –description of recycled handicrafts and retail outlets ...... 53 6.8.1 Annex: ThaiCraft...... 53 6.8.1 Annex: BOPE...... 54 6.9 Annex: Cambodia - description of recycled handicrafts and retail outlets ...... 56 6.9.1 Annex: Cambodia – product pictures of recycled handicraft products ...... 59 6.9.1 Annex: Cambodia – description of Sales facilitation of (recycled) handicraft products ..... 63 6.10 Annex: business canvas on a composting pilot ...... 65 6.11 Annex: policies on women economic development and environment ...... 67 6.11.1 Annex: vision for Myanmar- from the tourism master plan ...... 68

Table 1 Overview of amount of waste in Yangon and Mandalay ...... 8 Table 2 The waste composition in Mandalay, 2016 (MCDC, 2016) ...... 8 Table 3 MCDC waste collection resources Mandalay (2016)...... 8 Table 4 Characteristics of the street sweepers in Mandalay (from interviews) ...... 9 Table 5 Recyclable and non recyclables - from the streets in Mandalay ...... 10 Table 6 End destination of recyclables from the streets of Mandalay ...... 11 Table 7 The prices at street collectors level for recycling materials ...... 12 Table 8 Travel and Tourism Impact on Myanmar, 2017 ...... 13 Table 9 Overview of Country of origin of Survey participants ...... 15 Table 10 Souvenirs bought during the holiday Table 11 The price of the souvenirs (per product) ...... 16 Table 12 Some comparable products from recycled materials available in Yangon ...... 17

Figure 1 Hla Day shop and Retail outlet in Marketplace, Yangon ...... 18 Figure 2 Products in Cambodia made from recycled materials ...... 19 Figure 3 Example of down cycled plastic into upcycled products ...... 20 Figure 4 The Business Canvas ...... 24 Figure 5 Business Canvas - Handicrafts ...... 25 Figure 6 Overview of products made from recycled materials (as example) ...... 26 Figure 7 Potential customers segments and their needs ...... 26 Figure 8 Business Canvas - compost ...... 65 Figure 9 Community Composting - examples of tools ...... 66

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1. Background to the study

1.1 Future Cities, Future Women The Future Cities, Future Women Initiative (FCFW) is a gender–targeted ADB regional technical assistance program under the Future Cities Program (FCP) aiming to identify and support key triggers that would accelerate women’s participation in urban governance and economic development. FCFW focuses initially on two cities: Mandalay in Myanmar, Tblisi in Georgia, and with plans to add a third city in Indonesia. The focus in each city will be different and will depend on the context and developments in each one. FCFW will be aligned closely to other ADB-funded activities in the cities.

In Mandalay, ADB works closely with the Mandalay City Development Committee (MCDC) to support improvement of basic services – specifically water supply, wastewater, and solid waste management, which is also supported by the ADBs' Mandalay Urban Services Improvement Project (MUSIP). Recognizing the significant role of women in solid waste management: collection, waste separation, and recycling, this was identified as a focus for the FCFW activities in Mandalay. Preliminary work was undertaken to document the role of women in solid waste management and recycling, while this market research was undertaken to identify the supply and demand sides of handicraft production using recycled products.

1.2 Purpose and methodology of the assignment The purpose of this assignment is to carry out an analysis of the potential market for goods made from recycled materials, looking at either local markets for cheap goods, or tourist market for higher quality goods. The assignment also looked into examples from other SE Asian countries, (see ANNEX 6.1 for full TOR).

The approach was to look at both the supply side (materials and producers) as well as the demand side (buyers being tourists and potentially hotels) in Mandalay in specific but as there are none of these products currently produced in Mandalay, the assignment also went to Yangon, Bangkok and Phnom Penh and Siem Reap. The methodology used for this research consisted of desk research (identifying recycled products worldwide as well as interview participants), Key Informant Interviews (KII), structured interviews in a small survey (with Surveymonkey software), Focus Group Discussions (FGD) and observations in Mandalay and Yangon, in Bangkok (Thailand) and in Phnom Penh and Siem Reap (Cambodia).

The research questions were: • what are the 'raw' materials that could be used to recycle into handicraft products, in particular the materials that are not already recycled through larger "collectors"? What are prices for materials that can be recycled? What is the supply (how much is there at the moment and how much is the potential)? Who is collecting what waste materials and who is buying what? • what is the demand for products made from waste materials? Looking at Tourists (International and national) as well as a few interviews with hotels) • who could be producing products and are they interested? • what are the different options to turn the waste into something sellable? -> types of products • what are favourable policies around gender, waste (environment) and advocacy and economic activities?

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1.3 Data Collection The research was split in five parts, four around researching different components and the fifth part around presentation of different power points and a full day workshop, followed by a full day brainstorm session.

Desk research • Desk research (particularly to identify handicraft products made from waste from around the world)

Key Informant Interviews (KII) • Survey of businesses in the handicraft sector (producers of products made from waste materials, other handicraft producers and retail outlets, all selling these types of products in Mandalay and Yangon, in Bangkok (Thailand) and in Phnom Penh and Siem Reap (Cambodia). The survey consisting of interviews and observations meant to identify the challenges, opportunities and potential linkages. • Producer using recycled materials to make handicrafts: a total of 10 producers were approached in Myanmar (in Yangon), see Annex 1.1 for a list of key informants. • A fair trade market was visited in Bangkok (where four producers were interviewed) and the organisation managing the market was interviewed about the market and about their handicraft shop and products and challenges. Another 'eclectic' market was visited Chaktochak. • Shop owners and staff (producing and selling recycled handicrafts) were interviewed in Phnom Penh and Siem Reap (9 in total). In Siem Reap two markets were also visited to compare mass production and more "high end" production of recycled handicrafts. • Hotel interviews (for demand side), four Hotels in Mandalay, Yangon and Phnom Penh were approached to talk about recycled products and the potential of being placed in Hotels. • Three training providers were interviewed, 2 in Mandalay and 1 in Yangon, to potentially be involved in training of target groups.

Tourist survey • Rapid Tourism survey (for demand); a survey was developed to measure (in a small way) the interest in products made from waste materials (to identify which types of products were most of interest, we used photos so that people did not have to imagine the products). It was challenging to conduct interviews in most places as permissions were needed, but this would have taken too long, on top of this it was the rainy season. Seventy one interviews with tourists took place (for analysis see 3.1 and 0).

Focus Group Discussions (FGD) • Two FGDs took place with street sweepers in Mandalay one with MCDC salaried street sweepers and one with informal waste collectors (but somehow organised by MCDC as well), see 0.

Final workshop presentation and additional discussion days • Final workshop presentation of one full day, presenting four power points and facilitating two other speakers to participate, plus an extra day brainstorming with the team. Also two guest speakers were organised, one form Cambodia and one from Myanmar both experts in the handicraft sector.

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1.4 Structure of the report The assignment was a very practical one, in that it looked at the supply of materials and potential producers (chapter 2) to be able to produce handicraft from recycled materials, while it also looked at the demand side, being the potential buyers in this case mainly tourists and expats (chapter 3).

Additionally the assignment looked at comparable handicraft products (producers and also retailers) in other places in Myanmar, Thailand and Cambodia and what the differences are between these places and Mandalay in relation to the handicrafts. The report then concludes with possible future directions as well as an 'initial set up' of a business canvas (visual business plan) fora recycled handicraft business and the issues to think about.

2. The Supply Side The supply side to produce recycled handicraft products, consist of a description of the waste (amounts and what it consists of), some information from female (formal and informal) waste collectors and the type of materials that can or can not be recycled and prices. 2.1 Waste Although waste is a huge problem in the country, and several entities are working on solutions or doing research, exact data is still remarkably noon existent. For this paragraph the research relies on data from two studies; 1) 'Myanmar Waste Scoping Mission Report, Commissioned by the Ministry of Foreign Affairs of The Netherlands'1 and 2) the report 'Waste management in Myanmar, Current Status, Key Challenges and Recommendations for National and City Waste Management Strategies' 2 both published in 2017. In both reports it is mentioned that data on waste production is uncertain, because not all waste is being counted. A large part of the waste remains on the streets and in reality only a small part end in the landfills.

For Yangon, the Yangon City Development Committee (YCDC) reports a per capita production of 0.41 kg of municipal waste per day, whereas Mandalay’s MCDC provides a figure of 0.65 kg/day per capita waste production3. However, based on international data for similar cities and on the Gross Domestic Product (GDP) for both cities, the "Myanmar Waste Scoping Mission Report" suggests that the reality for the current average production is more likely to be 0.8 kg per capita per day, in both cities and growing towards 1.0 kg per capita per day in 2025. The average production is therefore more likely to be around 5,920 tons per day for Yangon and for Mandalay around 1,200 tons per day (based on 7.4 and 1.5 million inhabitants respectively and 0.8 kg /capita per day)4. This means that large amounts of waste, in both cities, remain on the streets and in drains (only a small amount that is being recycled).

1 Myanmar Waste Scoping Mission Report, Commissioned by the ministry of Foreign Affairs, Scoping Mission on Integrated Solid Waste Management (ISWM) to Myanmar, June 2017 2 Waste management in Myanmar, Current Status, Key Challenges and Recommendations for National and City Waste Management Strategies, 2017, IGES Centre Collaborating with UNEP on Environmental Technologies (CCET) 3 Idem 4 Idem

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Table 1 Overview of amount of waste in Yangon and Mandalay Cities # inhabitants Intl. estimate per Yangon estimate Mandalay estimate Dumpsites Roaming Roaming waste capita per day per capita per day per capita per day arrival waste according to reported according to Intl estimate 0.8 0.41 0.65 govt kg per capita per day Yangon 7,500,000 6,000,000 3,075,000 2,500,000 575,000 3,500,000 Mandalay 1,500,000 1,200,000 975,000 900,000 75,000 300,000 Reseracher calculation based on reported figures5

More than half of the waste (55%) in Myanmar is generated in the three main cities of Mandalay, Yangon and Nay Pyi Taw6. In Yangon only around 5% of the waste is recycled (estimate7). The municipal solid waste in general, comes mainly from households (60%), markets (15%), commercial (10%), hotel (2%), garden (5%) and others (8%)8. The waste consists for almost two thirds (64%) of organic matter (household/restaurant vegetable left overs and leaves), which ends up in the landfill, while if organized could end up as "compost". Fourteen percent of the waste is plastic and the rest is paper/cardboard, wood, textile, metal, glass and the rest9.

Table 2 The waste composition in Mandalay, 2016 (MCDC, 2016)10

Over the years the amount of waste has doubled and has forced MCDC to increase its resources, but its still not enough to deal with the continued increase of waste in Mandalay city. The MCDC only has limited resources available, see Table 3. On top of that the amount of fees the public pays for waste collection is very limited as well, only between 300-900 kyat per month per household (commercial waste costs 11,000 kyat per month), the service is highly subsidized11.

Table 3 MCDC waste collection resources Mandalay (2016)12 Number of Employees Number of Vehicles Number of Try cycle / Push carts 2200 211 179/322 More on the MCDC waste collection and the challenges in Annex 1.1

5 Myanmar Waste Scoping Mission Report, Commissioned by the ministry of Foreign Affairs, Scoping Mission on Integrated Solid Waste Management (ISWM) to Myanmar, June 2017 6 Idem 7 Idem 8 Idem 9 QUICK STUDY ON WASTE MANAGEMENT IN MYANMAR CURRENT SITUATION AND KEY CHALLENGES, JUNE 1, 2016, the Institute for Global Environmental Strategies (IGES) 10 Idem 11 Idem 12 Idem

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2.2 Waste collectors The waste collectors are mentioned separately in this report, as they are a potential target group for the FCFW future project, they have been included to provide a better insight into the potential to collect materials that could be used for the handicrafts. Two street sweepers / waste collector groups from Thingazar Creek were interviewed in Focus Group Discussions (FGD), the participants were all women, between the age of 21 and 64 and all were from Mandalay (no migrants). The MCDC facilitated their participation in the FGDs. The discussion points for the FGD concentrated on: 1) identifying what waste they are finding on the streets or at the market and what they are able to sell, 2) what waste material are they not able to sell to a recycling collector and how much of that do they get, 3) what are prices of waste materials that they sell (see paragraph 2.3), 4) what do they think of recycled handicrafts (this included a discussion around the visuals (Annex 6.6) and 5) a discussion about the skills they have and the interest they might have in changing or adding to another job. The FGD started with gathering some data on the women themselves (Table 4).

Table 4 Characteristics of the street sweepers in Mandalay (from interviews) 1st group – Formal • This group is employed by MCDC and collects all waste they find on their waste collectors appointed streets. The sellable waste is taken home to sort and to sell on to (women employed recycling collectors. The remaining waste (dirty and non-sellable waste) ends by MCDC to sweep in a landfill, via the MCDC waste collection process. appointed streets) • The weekly earnings, from collecting on the street, are between 7000-8000 kyat per person, sometimes more than 10,000 kyat per week. Besides the women get a monthly salary of 3,600 kyat per day and housing in MCDC houses. • These women have street sweeping materials from MCDC, including brooms and a cart. When carts are full they are brought to larger MCDC collection points where several sweepers bring the rubbish from their streets. • The women work fulltime and most women are from Mandalay. • The women (and their families) live in MCDC housing, see Annex 6.3.1

2nd group – • MCDC is not able to handle all the waste collecting so they allow these Informal waste women to also collect in certain areas where there is a lot of waste; for collectors (women example in ZayGyo market (the biggest market in Mandalay) where garbage that are not piles up. These women are allowed to collect anything they want, so they employed by collect specific ‘sellable’ waste, not everything. They bring it home and sort it MCDC, but for the resale. recruited by the • They work from 6-8 am – and from 5-7 pm, making two rounds. MCDC street • At ZayGyo market, besides bottles, cans, cardboard they also collect green sweepers (family vegetables, which they either use for their own household, or to sell to people members and producing pig fodder. In the evening the collect restaurant leftovers (and friends) to assist. some houses hand food for them at their gates). • This group of women are allowed to live together with the salaried MCDC street sweepers in the MCDC living quarters and conduct informal waste collection. • Some women use a bicycle to move around, but generally they just use a large bag. • They mentioned that they earn around 2,000 kyat per day, however they do

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not generally sell on a daily base but they gather all the waste and then sell every 2 weeks in larger quantities to the larger trader in recyclables. They earn around 20,000-25,000 kyat per 2 weeks per person. • Most women in this group are from Mandalay.

A third group of collectors, mainly migrants, was identified as well. They collect and sell in a similar was as the second group mentioned above, but live in own accommodation and are mainly collecting at the landfill site. They do not have the same status as the two interviewed groups.

Besides these groups of women there are also men involved in waste collection, they generally handle the larger carts and trucks and man the larger collection places. The men are able to collect much more "useful" waste and get a larger additional income from selling to the recycling collectors.

The participants in the FGDs indicated that they would be keen on finding work, which they could do from home, because they would be able to manage home affairs as well. They thought that producing would probably give them more money than they get from collecting waste. Very few participants had other skills such as sewing. They mentioned that they would need training if ever they would be taking part in a production. Sixty percent of the group were interested in learning new skills, mainly the younger women. The paper beads and necklaces (from the example photos of recycled handicraft products in Annex 6.6) were identified as products that they could even sell in the local market. They also liked the vinyl bags but were unsure where to sell these.

2.3 Recyclable materials Although it looks like large quantities of materials are being recycled, when one visits the recyclers (large collectors of waste materials and products that are being sorted for recycling), in reality only about 6% of the recyclable materials are being taken out of the waste that hits a landfill13. Most valuable waste materials, that are still worth something, are not caught in time, as households and restaurants do not sort their waste and hence only offer it as bulk waste (and mostly already too dirty to sort). When the valuable waste hits the landfill, its more difficult to collect and might afterwards also need cleaning before being able to recycle. Products that can not be recycled, because there might not be a factory nearby or the process is highly technical and not available in Myanmar or nearby in China are; styrofoam, coffee/chips packets, tarp and vinyl, individual fabric pieces and most organic matter is also not being recycled.

Table 5 Recyclable and non recyclables - from the streets in Mandalay Materials that can be recycled Materials that cannot be recycled (from Mandalay) • Glass - Myanmar (all) beer bottles- not • Styrofoam –there is a lot of it chipped (rum bottles big, rum bottles small , • Coffee packets, potato chips packets –there is energy drink bottle, green) a lot of it • CDs • Tarp/vinyl –there is a lot of it • Rubber - tube made in Thailand (but not • Tires -there is a market but difficult to reach Chinese), flip flops / slippers for the street collectors • Cell phones – the interior • Fabric - there is a market but more for fabric • Plastic - Water bottle (white), Bottle lid, soft directly from the factory

13 QUICK STUDY ON WASTE MANAGEMENT IN MYANMAR CURRENT SITUATION AND KEY CHALLENGES, JUNE 1, 2016, the Institute for Global Environmental Strategies (IGES)

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bag (black cannot sell), Broken hard plastic like • Plastic plates / bowls (melamine) –not in chairs/stools, Green bottles, Rice bag / Myanmar Cement bag, Packaging string (the hard type • Rain coats and umbrellas for bags) • Glass - that is broken • Paper - harder/card type, magazines, • Plastic bags – not all can be recycled newspaper, carton box, 'Jack' (cover of apples) • A lot of organic matter (leaves and green from • Copper – Yellow, Red market) is not composted and ends up in the • Iron landfill • Metal - Motorbike/car/bicycle 'rim' • Cover of tv, helmet, any black plastic (like tv • Metal Can - (and Plastic cans), Can Lids cover). • Organic matter from the market - watermelon, • A lot of greens from the market and from the radish, rice left overs. street Source: focus group discussion with street collectors and a large collector at ZayGyo (2017)

In terms of quantities, in Yangon, from a survey, they found that of the recyclable materials (of the 65 recyclable material that is collected); 57% is glass; cardboard and paper account for 15% and 13%, respectively, as well as plastic (7%), tin cans (7%) and other materials such as metal, iron are only one percent.

The street sweepers and collectors reorganise (and sometimes clean) their findings and organise the waste materials into quantities that the recycling industry needs (most is measured in viss (1.6 kg) or in numbers) in large recycled bags. They then sell their ware to a larger collector of which there are several in Mandalay. The larger collector generally brings large quantities to factories in Mandalay or Yangon, or exports it to China, in some case Chinese buyers come to Mandalay. There are a few factories in Mandalay and Yangon that use specific waste materials such as plastic and paper as raw material. The estimated production of chopped plastic bottles is 1,000 tons per month for Yangon and 70014 ton per month for Mandalay. Organic matter (60% of the total waste collection) is hardly collected15.

Table 6 End destination of recyclables from the streets of Mandalay Recyclable material End destination • Iron Being melted and sold to the construction industry in Myanmar • Metal cans Pressed into large blocks, the blocks are sold to larger traders who bring it to China • Paper There are factories in Mandalay that use recycled paper they pick up the paper at the sellers place. • Plastic clear water The bottles are cut into small pieces in Mandalay and a specific broker bottles and colored brings the cuttings to China bottles • Plastic juice cans A factory in Mandalay collects the plastic juice cans and makes it into granulates which then are sold to plastic producers in Mandalay • CDs They are stored and every now and then a buyer from China comes to buy them in Mandalay. • Plastic rice bags These are produced in Mandalay; white bags with virgin granulates and

14 QUICK STUDY ON WASTE MANAGEMENT IN MYANMAR CURRENT SITUATION AND KEY CHALLENGES, JUNE 1, 2016, the Institute for Global Environmental Strategies (IGES) 15 Idem

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green bags with recycled granulates. • Glass bottles (beer, The drink factory collects the bottles that are not chipped. All chipped rum, whiskey) bottles end in a landfill because there is no recycling of glass. • Hair Hair is collected and then sold to a 'cleaner/straightener and then sold to a broker who sells to China. • Large car batteries The large ones are sold to a broker in Myanmar, the small ones are taken and Small batteries apart for their copper and then all pieces and the plastic are sold to separate buyers. • Large pieces of hard Are sold to a "large" cutter, and from there sold to the granulate factory plastic and onwards to the hard plastic product factory (chairs). All of this in Mandalay • Vinyl, Tarp, Raincoat, All of this can not be recycled anywhere in Myanmar and they do not know Umbrella, Melamine if it can be recycled in China either. The traders are not buying these materials. • Organic matter Only on a very small scale is this being collected and being sold to pig fodder makers. • Car tires Are collected by people in the car industry, this is separate from the other recyclables, but they are being recycled. • Black plastic Black hard plastic can not be recycled Source: focus group discussion with street collectors and a large collector at ZayGyo (2017) (some materials could be recycled but buyers are not known (or too far away or the quantities are too small) to the interviewees.

At street sweeper level, the prices for the collected waste materials is low, and to earn a reasonable income large quantities of materials need to be gathered. The below prices were gathered from the FGDs and triangulated with the largest waste collector (trader) in Mandalay and his shop next to ZayGyo market (see Annex 6.3.2)

Table 7 The prices at street collectors level for recycling materials Description Per 1 viss (same as 1 Per piece in peitha) kyats = 1.63kg, in kyats Glass - Myanmar (all) beer bottles- not chipped 30-50

Glass - rum bottles big 35

Glass - rum bottles small 15

Glass - energy bottle 1

Glass - green 50

CDs 3000

Rubber - tube made in Thailand (but not Chinese) 1000 Rubber - flip flops / slippers 800 100

Cell phones (inside pieces 80 gr =1/20th of viss) 3000

Plastic - Water bottle (white) 1000-1050

Plastic - Bottle lid 800

Plastic - soft bag (black cannot sell) 250-300

Plastic - Broken hard plastic like chairs/stools 800

Plastic - Green bottles 300

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Paper - harder/card type, magazines 100

Paper - newspaper 150-200

Paper - carton box 240

Paper - 'Jack' (cover of apples) 150

Plastic - Rice bag / Cement bag 300-400

Plastic - Packaging string (the hard type for bags) 800

Copper - Yellow 6500

Copper - Red 9500

Iron 100-220

Metal - Motorbike/car/bicycle 'rim' 1800 Metal Can - (and Plastic cans) 2000 10

Metal Can - lids 2000 Source: focus group discussion with street collectors and checked with a large collector at ZayGyo market (2017)

In conclusion, there is enough waste material being picked up on the streets and the materials chosen for handicraft production, are materials that are now ending in the landfill and are not beiing recycled, hence it is a matter of collecting (and gathering maybe even from other street sweepers) for production in a small setup. The project is not talking about large quantities.

3. The demand side The demand side, consisting of buyers of recycled handicraft products, focusses mainly on the tourist sector. Other institutional buyers is too complicated for such a project16. 3.1 Tourists Myanmar's tourism industry is fast growing, even though there was a serious dip in arrival from western countries in the last tourist season, due to the situation in Northern Rakhine, which was widely reported on and lead to many tours being canceled, this trend is continuing for the next season. However, tourism from other Asian countries is growing. Tourism has a huge impact on the economy as a whole, and in particular on the handicraft sector. The World Travel and Tourism Council (WTTC) publishes yearly data on the impact of tourism and travel on a countries' economy (it also publicizes future trends). The WTTC also calculates "Visitors Exports generated" or the money tourists spend on buying for example handicrafts, which is particularly interesting because this provides an idea of the value of the sector, in which the recycled handicraft products would fit. In Myanmar, tourists exported to a value of USD 2,257.6 million in 2016, (a quarter of total Myanmar exports)17.

Table 8 Travel and Tourism Impact on Myanmar, 201718 Description Data Direct contribution of Travel Is 2,577.6 billion kyat (USD 2.1 billion) in 2016 (or 3% of GDP) & Tourism to GDP and forecasted to rise to 5,425.5 billion kyat (USD 4.5 billion) in 2027 (or 7% of GDP).

16 The research also interviewed hotels (including high end furnished apartments) but these entities conduct bulk buying of the same quality products within their 'house style' and buying different products means a lot of dialogue with the management of these entities (also because as service providers they need to look at ease of cleaning and fire hazards of products etc.). It was deemed to challenging. 17 Travel &Tourism Economic impact 2017, Myanmar, World Travel and Tourism Council (WTTC), 2017 18 Idem

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Total contribution of Travel Is 5,606.7 billion kyat (USD 4.6 billion) or 6.6% of GDP & Tourism to GDP and in 2027 to rise to 12,008 billion kyat (USD 9.9 billion) or 7% of GDP Direct contribution of Travel Is 804,000 jobs (2.7% of total employment) & Tourism to employment And forecasted to grow to 1,296,000 in 2027 (3.9% of total employment) Total contribution of Travel Is 1,662,000 jobs (5.7% of total employment) & Tourism to employment And rise to 2,387,000 jobs in 2027 (7.2% of total) Visitors Exports generated Is 2,752.1 billion kyat (USD 2,257.6 million), 26.4% of total exports and (money spend on buying this is forecasted to grow to 6,327.5 billion kyat (USD 5,190.7 million) in among others Handicrafts) 2027 (or 37.6% of total exports)

The overall tourist arrivals in 2016 was 2.9 million people (this number does not include day-trippers who pas borders with Thailand and China to trade). Only around 128,000 of the 2.9 million arrived directly in Mandalay, most tourists land in Yangon and visit Mandalay as part of their tour through the country19. Overall, Mandalay is also seeing an increase in tourists. The Mandalay Region’s Hotels and Tourism Department, reported an increase of 35% over the first half of 2017 (not including the second half as overall tourism figures were down).

The majority of the tourists visiting Myanmar originate from Asia (68%), and only 19% from Western Europe, 7% from North America and 3% from Australia20.

The average expenditure per tourist per day used to be 174 USD per day, but due to decreasing accommodation prices, and more affordable hotels and guesthouses coming online, in 2016, the average expenditure was USD 154 (accommodation, transport, food and other).21

The average length of stay of tourist is 11 days and is going up, because ofan increase in accessible areas (many areas were not accessible for tourists) and the increase in affordable accommodation has also supported the increase in length of stay22.

Most tourists arrivals are of men 63% (37% women) and almost two third (60%) are in the age category of 21-50 years, while 35% are older than 51 years. The latter could be because of the cost of travelling in Myanmar, there are less 'cheap backpacker' places for young people23.

The Mandalay Region’s Hotels and Tourism Department is promoting and raising public awareness about clean environment, in collaboration with related organisations in Mandalay.

Nationwide, most tourists are from Thailand, but for Mandalay Region, the majority of visitors are from China, followed by France and Thailand, while German and American tourists were on the rise as well24. For more details on National tourism, see Annex 6.4

19 Ministry of Tourism outlook for 2017, 2016 20 Idem 21 Idem 22 Idem 23 Idem 24 Idem

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Small tourist survey on handicrafts A mini survey among tourists was conducted (not representative) to get a 'taste' for the demand side for the recycled handicraft products. The survey took place in the rainy (low) season in 2017. • Country of origin - 71 people participated in the survey of which 18.5% were interviewed in Mandalay, the rest in Yangon (due to lack of tourists in Mandalay). Two thirds of the tourists were from Asia (67.9%) of which most were from Thailand and China and 18.6% from West Europe, very similar to the national tourist data.

Table 9 Overview of Country of origin of Survey participants

• Men vs women - There were slightly more women (54.9%) then men in the survey and slightly more than half of the participants were in the age bracket 24-40 years. • Amount of time in Myanmar and amount of money spend per night - More than half (57.6%) of the participants stayed between two to three weeks in Myanmar. While 58.2% pays between 25 to 45 USD per night for their accommodation and another 19.7% pay more than 45 USD per night. • Buying handicrafts - Most participants (85%) had already bought handicrafts or souvenirs in Myanmar and more than 85% of these participants would look for a fair trade or a community initiative or a social enterprise to buy souvenir products from to visit and to buy from. • The type of handicraft products that people had bought or were going to buy, were bags (61.97%), jewellery/accessories (50.7%) and Myanmar style clothing (49.3%), funky products made from recycled materials were also mentioned in 25% of the cases. Most products cost between 21 and 30 USD (per products).

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Table 10 Souvenirs bought during the holiday Table 11 The price of the souvenirs (per product)

Amount of money spend on handicraft in total - Most people (86%) spend in total, between 25 to 100 USD on handicrafts and souvenirs during the holiday, only 10% mentioned that they would spend more than 100 USD.

Favourite recycled handicraft product - The last part of the survey consisted of 6 pages with photos of handicraft products made of recycled materials 6.6) and participants were asked if they would buy any of these products. All products were of interest to everyone, with the bags and jewellery mentioned most, 63.38% and 52.11% respectively (for more details on the tourism survey, see Annex 0).

The survey, although small, indicated that tourists would be interested in the products. The handicrafts presented to the tourist would not necessarily compete (as a product) with "Myanmar traditional handicraft products" as they are all very different products, but they would compete for the limited spending on handicrafts as a whole; in the case of spending 50 USD on handicraft would one spend it on traditional handicrafts or on recycled handicraft, that is the question.

4. Comparable handicraft products (competition) Myanmar has a long tradition of producing handicrafts, from wood & stone carving to lacquerware, and silver & copper sculpting, to painting. The products are traditional, and often having religious, royalty or historical meanings. Mandalay in particular, is a centre of handicraft production, with many workshops scattered around the city.

Over the past years, with the opening up of the country and an increase in tourism as well as with an increase of income for nationals, the handicraft market has expanded and there are now more places where products can be bought. Initially people bought these handicrafts in historical pagodas (that are on the pilgrimage route), in the handicraft workshops themselves or in Bogyoke market in Yangon (souvenir market). In recent years handicrafts are now also sold in dedicated retail shops in the malls, as

16 | P a g e well as in small galleries. In Yangon many of these handicrafts are now made from recycled materials as well, but that is not the case in Mandalay.

In Yangon different initiatives started in the last years, working with recycled materials. The most well known organisation is Chu Chu, but there is also a recycled glass factory, a business using recycled inner tubes to make bags and purses, funky paper mache products and recycled paper necklaces can alsobe found, (case studies can be found in Annex 6.7), also see table 12 . These "new" products have been brought to the market with the support from "Pomelo" and "Hla Day", which are training and marketing organisations; facilitating market access for small producers by providing a retail space and assisting with design. Lately Citymarket (the largest supermarket chain in Yangon) has also been providing space for these organisations to sell directly to the public, in its "Marketplace" shopping centres, more details on these cases can be found in Annex 6.7 .

Most of these businesses are 'upcycling', which is reusing waste without destroying it in order to form something new (and often of a higher price). Upcycling is generally more energy efficient than recycling, as that needs to first break down the original product (using energy) and then forming it into something new. The recycling industry, is in fact "downcycling", which is when waste material is converted into something of lesser value, for example plastic bags , when recycled become plastic granulates of a lesser quality.

Table 12 Some comparable products from recycled materials available in Yangon Chu Chu

Sein Nar Gar Glass Factory – Upcycled glass

TUBE

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Amazing Grace

Traditional and Modern Paper Mache

Source: from business webpages

The products made from recycled materials are generally modern, funky and colourful and often produced in businesses that also focus on the social side of the business and would also be raising awareness on for example environmental issues but also on issues around gender, disability etc. A product is sold with a story attached.

In Yangon several of the above organisations and businesses would have difficulties to survive without the assistance and market access from 'Pomelo' and 'Hla Day', two retail outlets selling the above products. City market, providing a sales opportunity for several organisations also supports a lot.

Figure 1 Hla Day shop and Retail outlet in Marketplace, Yangon

Source: from business webpages and consultant photo

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Recycled products in Cambodia In Cambodia recycled products (rice bag and pig fodder bag turned into fashion bags) have been produced for more than 10 years already. The initial reason to produce recycled handicrafts was not necessarily an environmental reasons, but more practical reasons. In Cambodia, after Pol Pot, many handicrafts were of the verge of dying out, but several were revived with development assistance, one such revived industry is the silk sector, however handwoven fabric is rather expensive and only allows for more expensive products to be produced. Hence social enterprises started looking at different options to make bags. • Cambodia has a large garment industry, which imports all its raw materials (the country is a cut, make, trim country, with all fabric imported), hence there is a huge amount of 'left over pieces of fabric' available from factories, which is being used to produce other products like bags and clothes, upcycling. • Besides this the handicraft industry also found huge amounts of 'rice, cement, pig fodder bags' discarded along the road and one of the social enterprises decided to start working with this material and it sparked many businesses to follow. Cambodia is a small country and relies on tourists (and expats) to buy all these products. Many business are social enterprises; working with vulnerable groups or emphasising environmental solutions and this supports their sales, they sell a product with a story. In Cambodia most sales are made through businesses' own retail shops (sometimes at the workshop), and during the Christmas season the International Women's Group used to put up a huge Christmas fair (around 40 tables with products sold by the producers), after about 5 years other fairs started to also pop up, and it is now an established activity Christmas and summer fairs and in between the Khmer new year fair, while also night markets have popped up everywhere (general ones and 'high end' ones as well) etc. .

Figure 2 Products in Cambodia made from recycled materials Different businesses that 'upcycle' in Cambodia are; 'SMarteria' who use a type of mosquito net, bought at the local market in many different colours (used at farm for animal enclosures as well) which they make into bags and purses. Friends and Stuff who use old tires, recycled paper and metal cans to make paper beads, metal necklaces and rubber purses, belts and keychains. 'Funkyjunkrecycled' taken tons of plastic bags of the street, cleans them and cuts them into thread and the uses that to crochet it into bags and stools. They mention the number of bags taken of the street in their products. 'Tonle' is a fashion brand that only uses 'upcycled' fabrics from factories, they use even the smallest of cutting in different pieces and are able to claim to have reduced serious amounts of carbon emission and water usage by working with 'upcycled' materials, they mention this impact on their website. 'Lotus Silk and Waterlily' both upcycle accessories like bags (making vintage modern again) but

19 | P a g e also by using left over fabric from the factories (when its not enough to make something from the fabric end in the landfill) to make bags as well as using unconventional materials in necklaces. While 'Mekong Quilts', uses recycled paper to mould into products that are even able to contain water. Many of these businesses adhere to Fair Trade principles (a fair remuneration system for workers and fair pricing for buyers, which is checked by a third party on compliance). Most businesses, have their main income from sales in Cambodia but there are a number that also export and get around 30%-40% of income from export (a much more challenging proposition). After years of assistance through development programs, from their buyers, through handicraft associations, many now have high quality individual products that are selling well and the handicraft sector has become a 'visiting' item on its own, when going to Cambodia. Many of the businesses started as projects and NGOs and mainly looking for some income generating activities for the vulnerable groups they were working with. Many did start with grant funding until they could stand on their own two feet, and some still receive grant funding for specific "social" activities that they implement as well (nobody worked with micro finance or commercial loans). More details can be found in Annex 6.9

Recycled products in Thailand As with Myanmar, it is more difficult to find recycled products in Thailand. Possible because they also have a rich traditional handicraft history and don’t need to diversify. But possible also because waste management is a bit better organised and more is being recycled in a commercial professional manner. ThaiCraft is a Fair Trade company that assists craft producers with training and access to market. They have been in business almost 30 years and have facilitated market access for many producer groups. ThaiCraft implements a wide variety of activities with the producer groups that they support (a number of them make products from recycled materials). • They facilitate a monthly Fair Trade handicraft market in Bangkok. It’s a well know monthly activity with between 30-40 producer groups attending and selling their products. There are also stalls with food and drinks (some organic and also fair trade) to create a relaxed atmosphere where the whole family can go to. ThaiCraft facilitates the venue and the marketing and receives a percentage of the sales, see details in Annex 6.8.1) • ThaiCraft also exports Fair Trade handicraft products (designs of producers as well as their own designs) they support producers with new designs and product development and facilitate export under their brand name. • ThaiCraft also runs a Fair Trade handicraft shop and café, next to the Royal palace in Bangkok.

Figure 3 Example of down cycled plastic into upcycled products In both Thailand and Cambodia, two very modern initiatives took off, whereby plastic for recycling is chopped up in to small pieces (the same method as what normally happens in large quantities by commercial recyclers) and used as raw material for recycled plastic filament (thread) and as a filler for a moulding machine, making new high value products, a combination of downcycling and upcycling. The machines are not patented and technical drawings can be downloaded from the internet for free for every one to develop and use. In Siem reap (Cambodia the entity working on this is in its initial start up phase) but in Thailand BOPE is already a selling (see Annex 6.8.1).

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All in all, there is enough evidence that products made from recycled materials sell well and that there is a market; people are liking many of the items. However many of these businesses take years to come to full fruition and have received a lot of assistance and donations on the way, which is not necessarily available in Mandalay. In terms of contributing to reducing waste, these businesses are contributing in a minimal way, in most cases they are not creating more waste (and they are aware of the problem). The businesses, in general, do contribute to employment for vulnerable women (and people with a disability) under more favourable working conditions.

4.1 SWOT Analysis of Recycled handicrafts A 'Strengths, Weakness, Opportunities and Threats' (SWOT) analysis was conducted to compare the Mandalay (recycled) handicrafts situation to the Yangon, Bangkok, Phnom Penh and Siem Reap recycled handicrafts situation.

Strengths Weakness • There is a great potential to linkup with waste • The project target group needs to be trained that is not being recycled in Mandalay. (they do not have a lot of experience with any • There is a great story to be told around production) contributing to cleaning up the Thingazar • Large part of tourists/visitors in Mandalay creek that can be attached to the products. A are Myanmar or Asian and they generally less story adds to the products appeal. interested in these type of products, however • There are quite a few existing markets, such as younger people will be more open-minded. Zegyo Market, that are always visited by • The recycled handicraft market is not going to tourists, so there are enough spaces to sell the employ large numbers of women, because the products to start with, before having to open a market is not that large. full shop. • There is no obvious existing entrepreneur that • Almost all Myanmar handicrafts are also being is known and would take on a new project and produced in Mandalay, there is a lot of without entrepreneur it is challenging to set knowledge around. up a small business. If this starts as a project • The products would not be seen as an its unlikely that it will become sustainable. immediate competition to the existing • Marketing of the products will need to be handicrafts. strong, there are not necessarily clear places where tourists go that would be appropriate for recycled handicraft products only. Opportunities Threats • The competition are traditional souvenirs, • Copying happens everywhere in Asia and which are for a different buyer group. 'Funky’ designs or ideas are very fast duplicated, it products are not threatening traditional means that the producer needs t regularly handicrafts, as a product. However they might innovate and develop new designs. compete with the spending potential of the • Fall out of producers, the target group could tourist buyers; one can only spend the money find it challenging to work in a production unit. once. • Lack of finances • A growing tourist market, although not • Lack of support to the handicraft sector and to immediately from the right segment. the retail sector. • A Night Market was set up and has potential to become a nice evening spot to buy souvenirs and eat local produce. • Opportunity to link to Chu Chu who has established markets, training and processes

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• There seems to be only 1 small retail shop that sells more funky handicrafts and souvenirs, Mandalay could do with a souvenir cum café shop near the royal palace.

5. Conclusions Based on the different parts that have been studied, from the supply side to the demand side, the following conclusions can be drawn informing future steps.

Market • "Recycled' handicrafts is a more or less new production in Mandalay, most handicrafts are traditional arts and crafts, so there will be limited competition to start with. • Most handicraft retail outlets are within the workshops where the products are produced, there are hardly any generic handicrafts retail outlets. So if one sets up a production in Mandalay then an independent retail outlet also needs to be part of the business plan, as there are no Hla Days in Mandalay. • Selling a story with the ‘recycled’ products would be reasonably unique in Mandalay; the story would include female garbage collectors, recycling, cleaning Thingazar creek, taking care of the environment, nobody else is selling this story in Mandalay at the moment.

Buyers • Tourism growth was sluggish in 2017, however still increasing in numbers. The number of days in the country is also increasing, which means that Mandalay has more chances to be visited on a tour. However most tourists come from Asia (Thailand and China in particular) and these tourists might not be very interested in ‘recycled’ products. Hence the market for the 'recycled' products is small but it is there and will grow.

Raw • The target group is able to gather enough raw material from the streets, materials Materials such as certain plastic, paper, vinyl-tarp, cement bags, glass is found everywhere but can not be recycled through the Mandalay Recycling collectors. Besides the waste from the street, it would also be beneficial to organise other collecting processes directly from some relevant factories for example. In Cambodia producers started with waste that was available on the streets and from landfills, but a number have moved on to buy waste (left overs, in particular plastic and fabric) straight from the factories reducing the cleaning process and costs.

Producers • Choosing a particular target group could bring particular challenges. For example the workers might be less productive because they are new to a skill or because their environment at home is not ideal causing them to be sick regularly or distracted. Working with vulnerable groups is more costly. • The potential producers will need to be trained in both business as well as technical skills. There is training available in Mandalay for skills that are related to sewing. Other skills need to be brought in.

Products • The design and the quality of the products needs to be good important, also when selling a product with a 'story'. There is a lack of design input in the country. The

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main organisation supporting design is Hla Day (in Yangon) and they are already very busy, so fresh design input needs to be included in any plan. The design could combine traditional plus modern, to make the products more recognisable for a larger target group, 'old' designs made from 'new' materials. The techniques and designs need to strengthen the story that is being marketed with the products. At present there is very limited design and product development input in the country.

Funding • Funding is an challenge. There is a need for working capital and some capital investment; however there are limited options for start-up businesses to access such funding and if an existing entrepreneur would take up the project besides their own business, then it would still be doubtful whether they would be able to find funds (except for own funds). there are some funding challenges in the country. • Financial sustainability needs to be built in from the start; from Cambodia it is known that handicraft projects with a strong donor dependence do not make it.

Organisati • In most countries the registration for handicraft enterprises only allows for a onal Set business registration (no social enterprise registration or a non-profit doing trading Up or production organisation). However the social side of the business often implies that more funds are needed to produce the products (more training better wages, less efficient production due to home based workers etc) and less funds remain for full-fledged tax paying. • From Cambodia's experience it is clear that enterprises with a strong entrepreneur focussing on the business side but with a clear vision for the social side, survive the test of time. Businesses that start with the 'social' story first face far more challenges, generally because they do not have anybody close by that has enough business sense.

5.1 Possible Future Direction Short term • Link up with Chu Chu and develop 10 Chu Chu producers in Mandalay, who produce and sell the Chu Chu branded products. Working with Chu Chu as the leading entrepreneur, working and developing inexperienced producers in Mandalay and selling under their established brand and market. Assist Chu Chu with some more design and product development input (Vinyl and Tarp for bags, umbrellas etc).

• Conduct paper-bead making training with female Youth from the waste collection sites, this can be sold by themselves locally; they were keen on developing this. During the FGD, the young women were interested in this.

• Although not studied during this study, but based on 1) the CESVI experience and learning with community waste collection and composting in Yangon (they are also the driving force behind Chu Chu) as well as 2) the enormous amount of 60% of organic matter that ends in the landfills. It could be beneficial to conduct a composting pilot in one street where there is a good combination of households, hotels and restaurants. The pilot could initially produce compost for the MCDC public works (parks and curb gardens) and eventually look at more commercial options.

Medium • Facilitate the setup of a product development, design, production efficiency HUB, to

23 | P a g e term develop new products for the “Upper Burma” handicraft sector as a whole, including recycled products. The handicrafts sector in Thailand and Philippines improved massively due to dedicated efforts from government and industry into improved design, improved production efficiency, better quality products and extensive marketing. As part of the HUB 1) bring young Myanmar and foreign designers/engineers/production people together to implement the "recycled handicraft challenge" to increase interest in the sector as a whole and to support by modernizing it. and 2) Experiment with recycled glass beads (West Africa style), paper pressing (Mekong Quilt style), Plastic 3D-printing (Internet 'Open source" technology is available)

5.2 The Business Canvas for Mandalay recycling In the following paragraph, the handicraft business idea, has been worked out using the business canvas, a method of visualising a business model, (another business canvas for a pilot activity on composting can be found in Annex 6.10).25

Figure 4 The Business Canvas

(Osterwalder, Pigneur & al. 2010)

25 The business canvas, as shown below, consists of the following components; in the middle the value proposition, with to the left the production side and to the right the market and customers. The business canvas starts with a discussion on the 'value proposition and the customer segment' for which this value proposition fulfils a need. Once these 2 components are described filling in the rest continuously refers back to the value proposition and the customer segment, keeping the business model to the point.

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5.2.1 Handicrafts (Bags / Wallets / Storage / Jewelry) For handicrafts made from recycled material the business canvas could look like this:

Figure 5 Business Canvas - Handicrafts

There are potentially two customer segments that have "unfulfilled" needs, which can be fulfilled with the proposed products: • tourists need a souvenir from Myanmar that is cool, funky, different, modern, not too expensive, usable, colourful, helps people & the planet • expats and young Myanmar people (with a bit more money) need A) useful things for in their house (storage), B) gifts for for family and friends for birthdays, C) something different to be cool.

The particular products that the project could focus on (based on some of the outcomes of the tourist survey as well as on the 'waste' which is not being recycled and hence available on the street) are: • bags / Wallets -> usable, high quality, decorative/fashionable/funky, handcrafted, made from recycled materials, product • storage -> usable, high quality, decorative/fashionable/funky, handcrafted, made from recycled materials, product • jewellery-> usable, high quality, decorative/fashionable/funky, handcrafted, made from recycled materials, products.

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Figure 6 Overview of products made from recycled materials (as example)

Figure 7 Potential customers segments and their needs

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The customer segments are very different groups, that possibly need to be reached (the product delivery channels) at different locations. • Tourist will buy directly in souvenir shops, at 'night/souvenir' markets and at the production places. The location is very important to be able to catch them at the right time. Tourists will not go too far out of their way to only buy handicrafts, so the location needs to be in the vicinity of a 'tourist activity' or a 'thing to do', such as near a restaurant, near a hotel, ,near another type of attraction. • Expats & Young Myanmar people might not want to meet tourists when they are shopping and they would need a parking space and other sops nearby to combine several errands such as shopping malls.

The customer segments also demand different strategies to deliver the message about the value, a Myanmar target group would need a different Facebook approach (Myanmar page and Myanmar influencers) than the expat who would want to read about "news' in their expat Facebook groups while tourists use a combination of specific tourist Facebook pages and groups as well as travel sites.

The left side of the business canvas focusses on the production part. While the raw material is plenty, there will be a need to organise the gathering of particular raw materials that are now discarded such as tarps and vinyl. For all of the products there is a need to organise training, the target groups are not likely to have the required skills, different technical skills as well as business skills providers can be mobilised if there are enough funds to start a project or enough linkages with others to expand an existing stream of activities such as with Chu Chu.

Finally the costs, there will be a need for some capital investment and working capital, which possibly could be fulfilled with 'loans' through a microfinance organisation or otherwise together with an impact investor.

5.2.2 Skills training The target group that is envisaged for a potential project does not have any relevant skills, hence the following skills were identified, to a greater and lesser extend needed for both the activities, to be strengthened: Business skills Production skills Market (where and how) Design /product development / sampling Business relationships, Raw material gathering planning Pricing, (bookkeeping) Production Planning and management Promoting your business, Finding Customers Costing Sales Production Relationships Organisation of the business Production Financing (registration/ownership) Grow the business: Grow your business: Production expansion planning, Business planning, strategy Costing and Finding new customers Production management for growth Developing new products Finding new markets

Business skills for Artisans (handicraft producers) a new toolkit came out addressing the business skills, covering starting and growing the business, delivered by a team of certified trainers. Its called the 'The

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Myanmar Artisan Toolkit'26, in Myanmar language and produced by Hla Day, The Lutheran World federation and Turquoise Mountain. For composting this would however be very elaborate and not immediately relevant.

Production skills (depending on the chosen activities) can be addressed by: • sewing - Brahmaso (or Byamaso or New Hope association) provides sewing training (established 19 years ago) for beginners and advanced people. They are also able to customise the training and are based in Mandalay.

• glass beads making – technical expertise is from Ghana. It could be adapted to Myanmar together with the Sein Nar Gar glass factory in Yangon that already worked with recycled glass.

• techniques for plastic melting - Chu Chu is the expert organisation in Myanmar and are interested in expanding their business to Mandalay, they are based in Yangon.

Skills of producers can be addressed through training. But running and managing a production unit (handicraft or composting) requires more, it needs an enthusiastic entrepreneur to lead the producers and together with a production leader develop a business.

Another business canvas for a pilot on composting, can be found in Annex 6.10

26 https://www.myanmarartisantoolkit.org/toolkit/#how-to-use

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6. ANNEXES 6.1 Annex: terms of reference

TA-8797 REG - Promoting Gender Equality and Women's Empowerment (Phase 2) - Marketing Specialist (48206-001)

Objective and Purpose of the Assignment This Terms of Reference is for a Marketing Specialist to work in Mandalay to carry out an analysis of the potential market for goods made from recycled materials either local markets for cheap goods, or tourist market for higher quality goods. The marketing specialist will also identify examples from other SE Asian countries and prepare a report on options.

Scope of Work 1. This TOR for a market specialist to undertake a study of the potential markets for goods made from recycled materials and the activities is part of a broader set of activities that will identify the scope for a possible project, and contribute to design. The following activities will be undertaken as a whole. 2. Assessment of women's current and future role in solid waste management and recycling: The recycling value chain in Mandalay is fairly well developed and women play an important role at all the stages of the chain. The assessment will gather and review the currently available relevant information, and fill any information gaps identified. The assessment report will identify potential opportunities for increasing the incomes of women along the future predicted recycling/ waste management value chain either further work either linked through ongoing policy dialogue or project implementation, or else through additional interventions. – by others, not part of the consultancy 3. Assessment of government and non-government work and interest in working with low-income women: The assessment will document current any programs working with low-income women being implemented by government and non-government organizations. It will briefly describe the structure and capacity of the organizations and their future plans in this regard. – by others, not part of the consultancy 4. Market analysis: An analysis of the potential market for goods made from recycled materials, including domestic market for cheaper goods, and tourist or export markets for higher end quality goods. The current TOR relates to this study. – by the consultant 5. Stakeholder consultations: A number of different government, non-government, and private sector stakeholders as well as women involved in the recycling change will need to be consulted and help to identify relevant opportunities. The consultations will be a combination of on-going regular information sharing, and a workshop in June to present findings of the two assessments and the market analysis, and discuss future opportunities. – by the consultant 6. Policy brief and project identification: The assessment, workshop findings and a separate report on the market opportunities for goods made from recycled materials, will feed into the preparation of a policy brief to summarize the opportunities identified, and, if relevant, the preparation of a project proposal that can be submitted for additional funding. – by others, not part of the consultancy 7. Ongoing coordination with teams implementing related projects: Some of the interventions or actions identified may be feasibly incorporated into the designs and activities of on-going projects. Continuous cooperation and support to the stakeholders involved in these projects will help ensure uptake of ideas. – partly by the consultant

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Detailed Tasks and/or Expected Output 1. The detailed tasks and/or expected output are the following: 2. Tourist market: Review the projections for tourist arrivals in Mandalay, number of days spent, main tourist sites etc. Identify goods produced locally for the tourist market, and main outlets for both high end, and low end goods. What goods are most popular and where are they made? Would current shop owners selling to tourist markets be interested in new lines, and what items do they think would sell. The review could also talk to tour operators and guides, and if possible, to tourists from different countries. 3. Review of goods made from recyclables in neighboring countries: Compile at least 3 case studies of examples from neighboring countries of businesses (especially those involving low-income women) that have been established to make goods from recyclables. Examples could include but not be limited to these examples from Cambodia such as Funkyjunkrecycled, craftworkcambodia, Khmertrading. The case studies should look at how the businesses were established, where the initial capital came from, what equipment/technical skills were needed, how the market analysis had been done, and how the goods were marketed and to whom. 4. Domestic market: Identify existing product lines made from recyclables (e.g. baskets from coffee mix packets) and what the market for these goods would be. Identify a few potential product lines based on experience in other countries (e.g. shopping bags or sandals from plastic bags) and assess the price ranges of comparable goods on sale in Mandalay. 5. Preparation of the market analysis report: The consultant will compile the relevant information into a draft report, and then work with the lead consultant to revise the report and fill any remaining information gaps. The draft report will be circulated to stakeholders for comment. 6. Scoping workshop: The market analysis report will be presented and discussed at the scoping workshop in September.

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6.2 Annex: list of key informants N Organization Name Sector Contact Address o. Person Mandalay 1 KII Be Cool Retailer visit in shops 78th Street between 35th and 36th Streets 2 KII Amara Waddy Retailer visit in shops 493/25, 81st St , Bet; 35th St & 36th St 3 KII Maung Lay (U)-Daw Hla Retailer visit in shops Rm-73, East Entrance of Maha Myat Muni Pagoda, Myaing 4 KII Bay Dar Pann Producers visit in Blk-477, Htee Tan Ward, Tampawaddi, Chan Myay workshop 5 KII Ivory Carving Producers visit in 538, 80th St, Bet; 32nd St & 33rd St, Mandalay workshop 6 KII King Galon Gold Leaf Producers visit in No 143, 36th Street, Between 77th & 78th Street, Workshop workshop 7 KII Chit Mya Producers visit in Myay Pae Tan Yet, Sagaing - Mandalay Highway. workshop FG MCDC staff - street sweepers D FG Informal Street Collector D YANGON

1 KII Amazing Grace Souvenir Shop Producer Naw Eh Wah 26(A), Min Ye Kyaw Zwar St, Kyauk Kone, Yankin Tsp, Ygn. 2 KII Chu Chu (Dala) Producer Daw Wendy 507, Khaye Road, Dala Tsp, Ygn. 3 KII FXB Producer Ma Myat Mon No. 294/3, East Shwe Gone Daing Ward, Aung 4 KII Pann Nann Ein Producer Ma Hnin Phyu Room 205, National YMCA, TheinPhyu Road. Kaung 5 KII Flame Tree Producer Sapray Nar 6 KII TUBE Producer Soe San 1 KII Cesvi INGOs 87-C, Kan Road, U Khun Zaw Yeik Thar Road, Hlaing Tsp. 2 KII YWCA INGOs Naw Say Klo 119 Bogalyzay St, Botahtaung Tsp, Ygn.

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3 KII Hleping Hands INGOs Ko Aung Myo Nger Htet Kyi Pagoda Road, Ygn. 4 KII Mary Chapsmen INGOs Daw Nyunt No.2, Thantaman Street, Dagon Tsp, Ygn. Nyunt Thein 5 KII Action Aid INGOs Ma Myint No.1, Win Ga Bar Road,Shwe Going Daing, Bahan Tsp, Ygn. Myat 1 KII City Mart Retailer not Padonmar Stadium (East Wing), Bagayar Street, Sanchaung 2 KII Pomelo Retailer visit shop 3 KII Hla Day Retailer Mr Paro No.62, Shan Gone Street, Sanchaung Tsp, Ygn. 4 KII Karaweik Garden Hotel / Ma Su Nandar No. 62, 11th Street, Lanmadaw Tsp. Apartm/shop Win 5 KII Sule Shangri-la Hotel / Ma Ma Naing 223, Sulay Pagoda Road, Yangon Apartm/shop 6 KII Park Royal Hotel / Ma Lay Su Yin No.33, Alan Pya Payar Road, Dagon Tsp. Apartm/shop 7 KII Sedona Hotel / not No. 1 Kaba Aye Pagoda Road, Yankin Tsp, Ygn. Apartm/shop 8 KII Strand Hotel / not No.92, Strand Road, Ygn. Apartm/shop 9 KII Chartrium Hotel / not No.40, Natmauk Road, Ygn. Apartm/shop Other 1 Myanmar Tourism Federation Association Daw Kyi Kyi No. 3A, Corner of Waizayander Road & Thanthumar Road Aye 71 Tourists

Cambodia Phnom Penh 1 KII Onie Luna - guest speaker at the handicraft work shop 2 KII Smarteria Producer & shop visit and Retail talk with staff #8 E0, St. 57, Boueng Keng Kang, Phnom Penh, Cambodia 3 KII Lotus Silk Producer & shop visit and street 240 Retail talk with owner

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4 KII WaterLily Producer & shop visit and street 240 Retail talk with owner 5 KII Friends & Stuff Producer & shop visit and 215, street 13 Retail talk manager 6 KII Funkyjunkrecycled Producer & phone singapore Retail interview 7 KII Angkor Recycled Producer & shop visit and Angkor Night Market Retail talk with staff 8 KII Tonle Producer & shop visit and street 240 Retail talk with staff 9 KII Mekong Quilts Producer & shop visit and street 240 Retail talk with staff 10 KII A.N.D Producer & shop visit and street 240 Retail talk with owner Siem Reap 11 Ob Angkor Night Market market shop visit and siem reap s talk with staff 12 Ob Made in Cambodia market market shop visit and siem reap s talk with staff

Bangkok 1 KII ThaiCraft Heritage Craft & retail Stephen café Salmon 2 Ob Chak to chak market retail visit & talking s to different producers 3 Ob ThaiCraft market market visit & talking https://www.thaicraft.org/ s to different producers

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6.3 Annex: MCDC waste collection model and challenges The "Quick study"27 reported the following process being used to collect waste in Mandalay city, :

The MCDC waste management model uses different waste collection processes, from street sweepers and bell ringing (with a bicycle or cart) to haul containers along the roadside.

The problems associated with waste management in the country can be categorized as follows:28 (1) Waste Generation and •Rapid increase in volume of waste generation Composition •Increase and emergence of a variety of wastes need a proper treatment •Shortage of landfill space and difficulties in finding suitable lands within city limits •Increase in waste management cost •Lack of basic data and information (2) Policies, Regulations •Lack of policy at both national and local levels and Institutional •Weak enforcement of existing laws and regulations Arrangements •Lack of policy to promote 3R •Lack of planning •Lack of know-how and capacity at national and local levels •Lack of coordination within and among different administrative layers

27 QUICK STUDY ON WASTE MANAGEMENT IN MYANMAR CURRENT SITUATION AND KEY CHALLENGES, JUNE 1, 2016, the Institute for Global Environmental Strategies (IGES). 28 Idem

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(3) Public Participation •Lack of policies to promote 3Rs (Education, Promotion of •Lack of awareness to promote 3Rs 3Rs through awareness •Lack of awareness on health risks of the informal sector campaign & awareness •Lack of participation and coordination among stakeholders e.g. raising) inter-agency collaboration at national/local level (4) Economic Aspects •Revenue in the collection of waste is very low, so that it cannot cope with the total waste management expenditures •Penalties are not strictly enforced •Lack of measures for Public and Private Partnership (5) Technological Aspects •Limited know-how and capacity on suitable technologies adopted to the local condition •Limited resources including finance and expertise to invest for new technologies •Limited research and practical application on new technologies

6.3.1 Annex: MCDC housing and informal sorting area at Thingazar Creek

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6.3.2 Annex: the largest collector of recyclable materials in Mandalay city.

, next to the ZayGyo market

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6.4 Annex: Travel & Tourism – further details

An explanation of how WTTC understand the tourism contribution to the GDP

6.4.1 Annex: WTTC and the contribution to GDP29

Tourist in Myanmar (2016)30

29 Travel &Tourism Economic impact 2017, Myanmar, World Travel and Tourism Council (WTTC), 2017 30 Ministry of Tourism outlook for 2017, 2016

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6.4.2 Annex: Travel and Tourism in Myanmar compared to region Travel and Tourism in Myanmar compared to the region (and where Myanmar could go…..)

Visitors contribution to exports is relatively high, mainly due to the very low other exports.

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6.5 Annex: small tourist survey – more details From the survey conducted by the research team.

Participants Age

Amount of USD spent per hotel night Length of stay in the country

Total amount of USD spent on souvenirs during the holiday.

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6.6 Annex: recycled products (worldwide internet examples)

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6.7 Annex: Yangon – description of comparable recycled handicraft enterprises Businesses making handicraft products from recycled material in Yangon Name Chu Chu Sein Nar Gar Glass TUBE Amazing Grace Helping Hand Factory – Upcycled glass Start / Chu Chu started as a Tube was set up in Amazing Grace- Helping founded Cesvi project in 2013 Accessories was Hands' 2013 – 2016. established in started at the 2014, to help end of 2008 people with disabilities. Products The products are The glass used is The raw materials Most of the raw They bought designed by a collected from a are bought from materials used old furniture, foreign designer glass factory (they bicycle repair shops are recycled old teak from initially (as well as used to buy from from many different paper / wood shops ideas from the collectors but for township and newspaper / from Dala and marketing outlet) them collecting locations (sometimes magazines South but also more and from factory is a from Myawaddy as (Bought at 30th, Okkalapa and more members more convenient well). The price of 31st, 32nd, repainted, experiment with way to get raw one bicycle tube – street) and repaired and their own designs. products). 150 kyats (car tube – Plastic / cans / sold the They use Coffee/tea 1,000 kyats tire or tubes pieces. They mix sachets, (before)). All other (bought from also accept Cement bags, Paper raw materials such street customized (mostly prefer as zippers and inner collectors). The order. journal), Tubes lining etc are bought products they Raw material (Cycle or car tire), in Thailand. They make are: is teak wood, Plastics, Bottles, produce 1 new Accessories / with a price of Umbrella sheets, product per month bags / floor (for old wood) Wool (old used (they work with mats / 1 ton is wool shirts) etc. several designers, 1 containers / around the Most is collected by Thai and 1 German, jewelleries. 1,800,000 – street kids, from based in Chang Mai). 2,000,000 Ks teashops (and and 1 ton of International; new teak schools), their own wood is recycling around newspapers, and 2,700,000 Ks. Chu Chu also buys from Thein Gyi Market, Gyo Gone (pale ward), Mingalar market and Ba Yint Naung Market.

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Market Chu Chu has been Their biggest sales They sell at Hla Day, They produce 1 They mainly greatly supported are jars for jam Myan House, new product sell at their by sales at Hla Day, production, but Kareweik Garden, per month and workshop as Pomelo, Inle they also sell glass Inle heritage, Nandar they sell in their well as at heritage, and Kalaw and individual Resort (Bagan), own shop and Pomelo, and they are looking pieces. They do not Naung Shwe Aqua Li through Hla Sharky, Inle at expending to sell many glasses Li Spa and Bogyoke Day, Pomelo, Heritage and Mandalay and but they do it to market (own shop) Kareweik they are Ngapali. keep the skills, they and still export to Garden, and planning to sell these at Pomelo Chang Mai (where Inle heritage expand their /Hla Day and at they sell online in (based on sales to some hotels. Thailand). order). Hpa-An. Staff They started with An old family Soe Sans’ Mother They only 14 members business and Aunty, who can employ male (women), with (generation on sew very well, workers due many drop outs and generation), the participated in a to the type of new people joining skills take about 5-6 workshop and with work. again, they now years to learn. Most the support from have a group of 30 workers are men as Green Tree members (women). it is hard work to Foundation (NGO The members crush the glass group in Chang Mai) collect raw material (women only work in 2013, they at the workshop in the founded Tube. and make products polishing/finishing They used to sew at home. side of the work) products in Yangon and sent to Chang Mai. Average The sales average at Their average sales Their average sales 500,000 – 1,500,000 are $500 per month. sales per Ks per month month are depending on the around number of people 8,000,000 – visiting the 9,000,000 Ks. workshop.

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6.7.1 Annex: Yangon – product pictures of recycled handicraft products The pictures are a combination of own pictures and pictures from the internet pages of the respective businesses, for reference only Chu Chu

Sein Nar Gar Glass Factory – Upcycled glass

TUBE

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Amazing Grace

Helping Hands

Traditional handcrafted car parts from rubber tyres

Traditional and Modern Paper Mache

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6.7.1 Annex: Yangon – description of Retail outlets of recycled handicraft products

Hla Day (Yangon) Hla Day is 'A platform for producers' to: • To sell, to receive product development inputs, to receive production inputs • To receive business training through the artisan toolkit • To be in contact with tourists and expats who are their final customers. • To be in contact with other producers It started as a project, with donor funds and as Pomelo, then after a while Pomelo split up and the other organisation became Hla Day.

Challenges for producers as well as for Hla Day are: Finance and a lack of working capital, the need for more design inputs, how to increase sales, how to organise and pay for additional training for all, how to increase margins (the location and shop style are important for the image and pricing) but are also expensive in upkeep. There are many producers but they cannot help all. Clover – Souvenir / Gift shop in Kalaw The Clover souvenir/gift shop is a good example of what is not yet happening a lot, in terms retail. This shop buys from many different producers and sells to tourists in Kalaw. The products are similar to the products sold in Yangon (from the producers in Yangon). City Market- Market place "Market Place" by City Market allows small market stalls to stand in the 'walking areas' of their venues. In the new venues they seem to have permanent stands while in the older venues the stands only appear at the weekends. Bogyoke market Many organisations and companies still need an outlet at the very large Bogyoke souvenir Market. This market is a landmark in Yangon and local products need to also feature there, as in particular tourists always pass by this market.

Hla Day (Yangon)

Products in the retail shop in Kalaw

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City Market- Market place

Bogyoke market

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6.7.2 Annex: Yangon - other handicraft production Flame Tree They produce Bags, Kids wear, cushion since 2016. They they print their own cotton fabric in India and they send is back to Yangon either by ship or by someone who is coming to Yangon. They also order woven fabric in Mandalay, Mon, Kayin, Mrauk-U, Loikaw and Shan State. They use all kinds of traditional fabric for raw material. They sell to Hla Day & Pomelo (Yangon), Inle Princess Hotel (Shan State), Inthar Heritage House (Shan State). Their average monthly sales are around 2,000,000 Ks, for 35 staff. They are registered as a Company doing social business.

FXB Handicrafts Myanmar They have vocational training center for women and men. Women do embroidery, sewing and weaving, while men do metal work, wrought iron and wood working. They mentioned that their only recycled product is Shan handmade paper which they collect from Shan state – (although this is mulberry paper and not recycled). They produce 1 new product each year. They make accessories, fabric toys, fabric, curtains, candles, recycle paper cards and bookmarks, cushions, floor mats, table mats and napkins, table runners, handmade textiles, metal lamps, candle holders, wood toys and cabinet.

Pann Nann Ein Established at the end of November 2012, they are registered at township YCDC. They started with making handmade wedding invitation cards and later had their own showroom at YMCA (in January 2017) and they sell at Hla Day, Pomelo and Karaweik Garden, Inle heritage and Yangon International Airport. Raw materials are ordered from Amarapura, they weave the textile there. Sometimes they buy from Yangon Market like Thein Gyi Market or Mingalar Market, the only thing recycled they use are the magnets which they buy downtown.

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6.7.1 Annex: Mandalay – product pictures of traditional handicraft and retail outlet

Traditional handicrafts in Mandalay

1 Car tires reused as waste bin in Mandalay PICTURE FROM: Myanmar Waste Scoping Mission Report, Commissioned by the ministry of Foreign Affairs, Scoping Mission on Integrated Solid Waste Management (ISWM) to Myanmar, June 2017

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6.8 Annex: Thailand –description of recycled handicrafts and retail outlets 6.8.1 Annex: ThaiCraft ThaiCraft The Art of Self-Reliance - ThaiCraft is a social enterprise with the vision of being the leading provider of top quality crafted products from Thailand by enabling skilled artisan groups to access development and improve their lives through sustainable markets, a fair income and with a respect for ethical principles. • ThaiCraft promotes self-reliance for village artisans in Thailand, providing them with training in quality control and product design as well as access to local and overseas markets. • ThaiCraft provides access to local markets for producers, through: • Monthly ThaiCraft Fair - > 25 years and more than 50 producers participate • Promoting producers events in their brochures, for example they announce different producer fairs in Korean and Japanese language. • They operate a heritage craft shop (www.heritagecraft.org) next to the palace in Bangkok • They export producers products under the ThaiCraft brand The Monthly ThaiCraft Fair has been going for more than 25 years already. • It features around 50 producers who sell their own products under ThaiCraft label • ThaiCraft provides for the venue in return for a % on the sales. • Producers man their own table • The ThaiCraft market follows different themes, throughout the year, to keep customers interested and to be able to change producers. The fair takes place in a Ballroom of a hotel and is well promoted. ThaiCraft also exports a range of products from the producers they work with. They practice fair trade principles in their buying and selling.

The pictures are a combination of own pictures and pictures from the internet pages of the respective businesses, for reference only

The ThaiCraft brochure and the ThaiCraft shop

The ThaiCraft Fair

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6.8.1 Annex: BOPE BOPE products (Not explored but great potential) With the use of open source technology from 'Precious Plastic' two organisations in Chiang Mai (Thailand) but also in and Siem Reap (Cambodia) have developed machines that cut, shred and melt plastic into new products, that are useful (and not only decorative). ➔ Precious Plastic – has created 4 open source tools, made from basic materials available everywhere and on the internet they come with "building" instructions. ➔ The precious plastic machines are being build and used in different parts of South East Asia. Anyone can obtain the free (Open source) technical specs to develop plastic moulding/pressing etc. machines on the internet. Growing communities of people interested in recycling and making products are using the specs and building their own machines in different countries around the world. Two such projects are BOPE in Thailand and NAGA in Siem Reap. https://preciousplastic.com/en/machines.html

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BOPE machinery and products

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6.9 Annex: Cambodia - description of recycled handicrafts and retail outlets Businesses making handicraft products from recycled material in Phnom Penh Na SMarteria Friends Funky Junk Recycled Angkor recycled me Fou A well known worldwide Friends' is an Funkyjunk reminds Angkor Recycled nde brand, established in 2006, International organisation people of the number of was found in 2007, d the main raw material used working with street plastic bags take off the they work with 20 is fishing net, it is an children. They provide street by mentioning tailors, of which upcycling production – vocational training, this on their labels. some with a where new fishing net (a outreach programs and a disability. cheap material) is being huge number of other used to produce bags. training activities. In Cambodia they are best known for their 3 training restaurants – where youth get trained. All restaurants are operated as a social business with on the job training for the students. Pro SMarteria uses other Accessories, t-shirts, The products are being duct recycled products (crochet home décor sold in retail outlets in s pieces of plastic bags and Cambodia and recycled leather) that they Singapore and feature in stitch to the fining net as a number of boutique decorative parts, but the hotels as well. In main products are upcycled particular the laundry fishing nets. basket and the stool are products that could easily be used in smaller hotels. Mat Smarteria uses waste Friends n Stuff' is the The biggest challenges The company has erial products as much as handicraft brand, where for the business are, to overwhelmed the s possible, the main raw by mostly recycled gather the plastic bags market with material is fishing nets but materials like newspaper, as they have to go "recycled fish also upcycled PU leather rugby balls, tires, cutlery, further and further to fodder' and cement and plastic bags, and they food packaging, find them (they collect " bags. This is an line each bag with upcycled magazines are used as themselves) and to run example of where it fabrics from factories. The well as 'end of roll fabric' the production process is unclear whether fishing net continues to be like kroma, sarong, in a smooth and these are all the key raw material of our cotton, vinyl, to produce efficient manner. The recycled materials company since our funky products that are production is in the or end of the line beginning. In Cambodia it is sold, locally and are country side and far bags, or just plain used for many different exported as well. Using away from where the 'new' bags. It is purposes: to dry rice, to recycled materials marketing team is doubtful that all keep animals safe in their increases awareness and based, the distance bags can have the stables, to sift sand in reduces litter. All does not facilitate same pictures on construction sites. materials are locally smooth operations. the front of the bag, sourced and producers when working with are trained to source their distressed recycled

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materials themselves and bags. However the pay attention to quality, staff and other price and supplier retailers were relationships adamant that the raw materials for the bags and purses were recycled bags,

Staf Over 80% of the current The producers are Funky Junk Recycled has Some staff have f employees are women and homebased and undergo their own team to disabilities they ensure that staff has a training that supports collect, clean and the same opportunities to marginalized families, produce the recycled grow and develop within particularly parents, to plastic products, their roles. They offer free keep their kids at school. ensuring that indeed childcare on site to all their raw materials from the staff. Staff also receives street are collected, no benefits such as English shortcuts are taken, and lessons, double maternity indeed the production and family support leave, of the products is health insurance, savings reducing litter in the accounts, and training to streets and develop their skills and neighbourhood. careers. . We http://smateria.com/mater https://friendsnstuff.org/ http://www.funkyjunkre https://www.angkor bsit ial-and-process/ pages/the-materials cycled.com/catalogue/4 recycled.org/contact e 592006982 /

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Businesses making handicraft products from recycled material in Phnom Penh Na Tonle Lotus Silk Waterlily Mekong Quilts me Fou Vannary San founded Waterlily, produces Mekong Quilts is a nde Lotus in 2003 with one funky accessories and social enterprise d sewing machine and one bags, by using buttons, creating tailor. Lotus Silk makes zippers, sustainable ethical hand-crafted fabric, focusing on employment for accessories (and some upcycling, funkiness, under-privileged garments). They focus on design and uniqueness! women in remote preserving traditional skills and rural regions and knowledge and giving of Vietnam and long term, fair incomes to Cambodia. The disadvantaged women and organisation communities. started in Vietnam and then slowly moved to Cambodia. Pro Tonle is an ethical, Fashion clothing and Waterlily has been at They produce a duc environment friendly brand, accessories the forefront of range of different ts which uses waste fabric and upcycled fashion in products ranging while finishing their Cambodia for a from quilts to products also innovating to long-time. It is a small papier-mâché bring their own processes production unit and due letters with down to zero waste. Their to the uniqueness of the magnets and process uses scrap waste materials used they papier-mâché sourced from mass clothing produce in smaller vases and pots. manufacturers in quantities. They have Cambodia. They try to use professionalized every thread to create the paper mache, handmade clothing and making it into a accessories. The have strong building worked tirelessly to develop material. a closed loop in the production to bring down their waste to nothing. Mat Tonle uses the smallest They use 'old' or ‘waste’ erial scraps of fabric to sew into fabrics and garments, and s their garments, or hand sew refashioning them into a them into yarn or when it is new, better quality too small it is used in product, upcycling the raw recycled office paper materials. Lotus Silk making (for Tonle's hang upcycles materials in the tags. production of their Retro inspired clothing, and in their collection of bags; upcycling reduces waste and gives new life to something that was

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already existing and once loved, creating authentic and unique items. Staf There are now employ 10 The organisation f tailors and work with 5 employs over 340 rural communities. women from various communities and the profits made go directly towards community development initiatives such as scholarships and health programs. We https://tonle.com/ http://lotus-silk.com/ https://www.yourphno http://www.meko bsit mpenh.com/water-lily/ ngplus.org/en/ e

6.9.1 Annex: Cambodia – product pictures of recycled handicraft products

Business in Cambodia

SMarteria

Friends and stuff

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Funkyjunk Recycled The motto of the founders, 'plastic bags do not go away, so we did something about it!'

Angkor Recycled

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Tonle- fashion brand

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Lotus Silk

Waterlily

Mekong Quilts

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6.9.1 Annex: Cambodia – description of Sales facilitation of (recycled) handicraft products

'Christmas Fair' organized by "Women International Group"(WIG). The first handicraft fair in Cambodia, organized by "Women International Group"(WIG). The Fair started as a once a year activity, where around 70 producer vendors were selling a variety of handicrafts, jewelry, books, toys, soft furnishings, house accessories, home-made products and much more, just before Christmas, the "western time" of giving presents to each other. The fair had several additional activities organized to entice shoppers, such as: winning of raffle prizes, food and fun for kids, Santa Claus, etc. The admission fee ($3 US Free for children up to 12 years old) proceeds would go through the WIG to sponsor projects supporting vulnerable women and children in Cambodia. The venue was donated. It became a yearly well known and anticipated event for both shoppers and vendors. Different organisations used to work with producers beforehand to assist with developing new products for the fair, as producers tend to be stagnant. Now several fairs and bazars have opened up in Phnom Penh and Siem Reap, showcasing Cambodian made products. For example "Street 240" – a well-known area for handicrafts in Phnom Penh, organizes their own "Street 240" fairs, for Christmas, Khmer new year etc, under their own brand

'Christmas Fair' organized by "Women International Group"(WIG) and subsequently different parts of the city such as Street 240 would organize their own fairs.

Craftnetwork Cambodia (CNC) – Export facilitation centre Was set up by IFC GBI and Traidcraft (fair trade), in Cambodia as a project to facilitate export of Cambodian handicrafts and aiming to increase the capacity of producers, the quality of the products, increasing the sales and ultimately (if useful) register as a company. The project did register eventually as a company but had to close due to unsustainable overhead costs.

Positive impact: about 15 handicraft producers, linked to the CNC, underwent a lot of capacity development and increased sales and marketability of products. Year on Year sales through CNC increased and even wholesale sales to Marks & Spencer (UK) and Macy (USA) were established.

However the business model was flawed from the beginning in that the project worked with consultants (expensive and non-committed to the survival of the enterprise) and while moving from project to business the consultants were too expensive and working capital to fund such overhead was not available for a long time Challenges in producer assistance were:

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• Trade-offs between the intensity of the social impact and the ability to become financially self-sustaining -> especially for handicraft and how to support organisations with this. • The top areas for operational assistance that are generally needed include; improving the quality of the good or service (E.g., product design, market research), efficiency of production and operational processes, internal processes such as IT, and Enterprise Resource Planning systems and how to support organisations with this as this needs organizational development and adjustments and organisations are generally not ready to this, also because many do not have executive directors that have the right mandate. • Lack of working capital is the biggest challenge to grow and expand. The most effective financing interventions integrate grants to fund core operational improvement technical assistance with working capital to finance growth and new initiatives. Again these adjustments require organizational development and mandate sitting with the right people to develop plans and take the responsibility based on the business case. The management of producer organisations are rarely business savvy, they are rather social savvy.

The tensions between social objectives and optimizing the business side of the organisation has its trade-offs – within this sector regularly in favor of the social side, neglecting the efficiency of the business side. As mentioned before the other trade of is that changes would need to be done through organizational development exercises whereby an outsider might sit within the organisations for a while and works at organizational level, which is a challenge for these organisations, they are generally not ready for that when the 'project' is available and active.

Anchor Wat Park Recycled tires used in Anchor Wat Park, these are also used by the Mandalay Cleansing Department (however a lot of the waste lies next to it (and difficult to handle for the workers)).

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6.10 Annex: business canvas on a composting pilot Sixty percent of the waste collected comprises of organic matter, which is almost not recycled by anyone and therefore ending in the landfill, producing huge amounts of methane (by decaying organic matter) which is a huge fire hazard. It might therefore be opportune to develop a pilot scheme to test whether composting could be an option. A pilot could focus on one long street with restaurants, households and hotels that produce enough organic matter. Activities would need to focus heavily on 'community mobilisation and awareness raising', but the right equipment for a team of collectors and a space to produce the compost would also need to be considered. Potential markets for the compost from the pilot scheme could be governments public parks and works as an easy start while a pilot would be focussing on awareness raising, getting the quality of the compost up to speed and setting up processes to gather the organic matter. As the activity matures other, more commercial, markets could be trialled during the pilot. For composting produced from recycled 'green' material the business canvas could look like this.

Figure 8 Business Canvas - compost

The value proposition for compost is a product that enhances the soil and hence supports the growth of plants at an affordable price in an easily accessible location. • The unfulfilled need of farmers (as a customer) is for fertiliser at an affordable price while reducing the chemicals. Areas where the compost would need to be made available are: in Mandalay region, all the way to the Dryzone, where farmers are dealing with depleted land. Farmers do not want to

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have to go out of their way to buy the compost, so rural distribution networks of fertiliser and related products could need to be linked up to. • The unfulfilled need for government public works departments involved in gardening is for chemical free (due to public areas), not too expensive compost to create lush gardens and parks. The pilot would start with the government departments to test the reception of the compost. • As this is a pilot, it could be started with low cost investment into the collection carts and the compost production area. Some where on government land as a start to develop the model. There are many low cost examples to be found on the internet, whereby a community collection system and even community compost making process is followed, decentralised. • Workers could be trained in compost making by NEED organic training (Hmawbi township) or from Yezin (University) or from Mandalay State Agricultural Institute (SAIs) in Patheingyi. The initial business model would be to distribute among government departments and only eventually test commercial viability for which a more refined business plan could be developed. • As with the handicraft business ideas, there is a need for some capital investment as well as working capital. If a pilot could start with support from the MCDC in terms of staffing, land and cart, then the investment would be minimal. The main investment would be in collecting tools and an enclosure to keep the composting active, see below.

Figure 9 Community Composting - examples of tools

Composting - The Network for Environmental and Economic Development (NEED) is an NGO from Chaing Mai that has established an organic farming training school in Hmawbi Township and are able to provide composting training through their Eco Village Farm School.

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6.11 Annex: policies on women economic development and environment

There are several policies consisting of both supporting women and economic development as well as environmental awareness raising, namely:

• National Strategic Plan for the Advancement of Women (2013-2022) has 12 Action areas: among others: Women and Livelihoods & Women and the Economy,

In 1996 the Myanmar National Committee for Women Affairs was formed (MNCWA) under the Ministry of Social Welfare, Relief and Resettlement (MSWRR). The Union Minister, of the MSWRR, Chairs the MNCWA. The Ministry (The Department of Social Welfare in particular) and The MNCWA, together, developed the National Strategic Plan for the Advancement of Women 2013-2022 (NSPAW)

National Strategic Plan for the Advancement of Women (2013-2022) has 12 Action areas: Women and Livelihoods, Women, Education and Training, Women and Health, Violence against Women, Women and Emergencies, Women and the Economy, Women and Decision-Making, Institutional Mechanisms for the Advancement of Women, Women and Human Rights, Women and the Media, Women and the Environment, and the Girl Child.

The key objective under Women and the Economy is to strengthen systems, structures and practices to ensure fairness and equal rights for women in relation to employment, credit, resources, assets and economic benefits, with Research & Surveys, awareness raising and Implementation of practical initiatives that forward these objectives by Government and Non-Government.

• Laws / Acts, MCDC Law 2015, Jan 12, and MCDC Environmental Conservation and Cleansing bylaws 2015, May 14, and The City of Mandalay development law 2002

For the Myanmar National Environmental Policy (from 1994) to be implemented, several laws and rules needed to be developed31. This is the sequence of Laws and rules that came out: 1994 Myanmar National Environmental Policy 1997 Myanmar National Agenda - 21 2009 Myanmar National Sustainable Development Strategy 2012 Myanmar National Environmental Conservation Law 2014 Environmental Conservation Rules

Several laws are relevant for waste management and recycling in Mandalay, such as32: 2002 The city of Mandalay Development Law

31 QUICK STUDY ON WASTE MANAGEMENT IN MYANMAR CURRENT SITUATION AND KEY CHALLENGES, Dickella Gamaralalage Jagath Premakumara, Senior Researcher and Matthew Hengesbaugh, Policy Researcher of the Institute for Global Environmental Strategies (IGES), Japan with the support of the Environmental Quality Management Co. Ltd., Myanmar as a basic information for the First National/ City Workshops for Developing the National/ City Waste Management Strategies, 13-17 June 2016, Myanmar under the project activities of the IGES Centre Collaborating with UNEP on Environmental Technologies (CCET), Draft JUNE 1, 2016 32 Idem

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2015 MCDC Law 2015 MCDC Environmental Conservation and Cleansing bylaws

The MCDC has been implementing awareness raising activities on the environmental laws with waste handlers, schools, factories and with other owners of establishments33. MCDC has for example also banned the use of plastic bags in 2009 (although this is not noticeable as there is hardly any enforcement of this law) 34.

Both the environmental policies and the women & economic empowerment policies focus on awareness raising. Handicraft produced by women from recycled materials fits perfectly in these policies which would be empowering women and raising awareness on the treasures found on the street. Developing marketable products from cans, bags and bottles is about bringing awareness to the people about the value of the waste, the need to recycle and diminishing the dirty image of waste.

6.11.1 Annex: vision for Myanmar- from the tourism master plan The vision for tourism in Myanmar, as set out in the Responsible Tourism Policy is: “We intend to use tourism to make Myanmar a better place to live in—to provide more employment and greater business opportunities for all our people, to contribute to the conservation of our natural and cultural heritage and to share with us our rich cultural diversity. We warmly welcome those who appreciate and enjoy our heritage, our way of life, and who travel with respect.”35

33 QUICK STUDY ON WASTE MANAGEMENT IN MYANMAR CURRENT SITUATION AND KEY CHALLENGES, Dickella Gamaralalage Jagath Premakumara, Senior Researcher and Matthew Hengesbaugh, Policy Researcher of the Institute for Global Environmental Strategies (IGES), Japan with the support of the Environmental Quality Management Co. Ltd., Myanmar as a basic information for the First National/ City Workshops for Developing the National/ City Waste Management Strategies, 13-17 June 2016, Myanmar under the project activities of the IGES Centre Collaborating with UNEP on Environmental Technologies (CCET), Draft JUNE 1, 2016 34 Waste Management in Myanmar, Current Status, Key Challenges and Recommendations for National and City Waste Management Strategies, 2017, IGES Centre Collaborating with UNEP on Environmental Technologies (CCET) 35 Myanmar, Tourism Master Plan 2013 – 2020, 2013 Ministry of Hotels and Tourism, The Republic of the Union of Myanmar

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