JRCA Vol. 21, No. 1 (2020), pp.79-114 79 How Local Handicrafts Enter the Global Tourism Market: A Case Study on a Carpet Business in Rural Uzbekistan Fumoto Sono University of Tsukuba Abstract This paper clarifies a part of the process of the commoditization of Uzbek handicrafts for the global tourism market, focusing on one family’s carpet business in rural Uzbekistan. The family began selling carpets to foreign tourists in 1998 and has been successful in the business. This paper analyzes the factors leading to their success based on the author’s participant observation and reveals two major factors. First, they developed their business by building relationships with tour guides and conducting product development. Second, others in the settlement were hesitant to enter the carpet business because of the business’s association with poverty. The commoditization of traditional handicrafts does not exclude the local value of those handicrafts but instead is directly influenced by the local value. Key words: Handicrafts, Commoditization, Market economy, Global tourism market, Entrepreneurship, Uzbekistan, Post-Soviet era 80 How Local Handicrafts Enter the Global Tourism Market Fumoto Sono 81 Acknowledgements USD). Compared with others in the settlement, Sharif’s family was I would like to express my gratitude to editors and anonymous earning an incredible amount of income at the time that this study referees of JRCA. I would also like to thank editage for English was conducted. Why was Sharif’s family so successful in the carpet proofreading. This paper was supported by KAKENHI Grant business? Number 18KK0022 and 18K18242. To examine this question, I clarify a part of the process of the commoditization of handicrafts for the global tourism market, Uzbek carpet seller, Sharif, and his family have been making a analyzing the factors of their success by focusing on not only their living from their carpet business for foreign tourists since 1998. Their knack for entrepreneurship but also the local values surrounding the house is located between Samarkand, the most famous tourist city in carpets. Sharif’s family’s case demonstrates that the commoditization Uzbekistan, and Shahrisabz, the United Nations Educational, of carpets is determined by the global tourism market and through a Scientific, and Cultural Organization (UNESCO) World Heritage variety of interlocking factors such as local consumption patterns. Site. Their business began when a tourist passed by their house and bought a carpet from Sharif. This event was just a coincidental The Situation of Handicrafts in Independent accident; ever since then, however, Sharif has been encouraging Uzbekistan and the Approach of This Paper tourists to buy his carpets. Sharif’s family has succeeded in the carpet business by building relationships with guides who bring tourists to The Handicraft Industry under the Handicraft Promotion Policy their business, conducting product development for foreign tourists, and Individual Economic Activity in the Post-Soviet Era and providing amenities for tourists such as tea services and toilet The Uzbek government promoted the market economy through facilities. I stayed with Sharif’s family in their home from May 2010 perestroika, which was spearheaded by Gorbachev in the mid-1980s to May 2011 for my field research, and during that time, specifically and after the collapse of the Soviet Union in 1991. The collapse of the peak tourism season, they were earning around 4,600,000 som the division of labor between the Soviet republics caused economic (2,000 USD)1 a month from their carpet business. Uzbekistan’s stagnation, including the destabilization of material supply and average monthly salary at that time was about 345,000 som (150 product demand and a decline in domestic production and exports. The transition to the new market economy caused a level of 1 In 2010 and 2011, there was an official exchange rate and an unofficial confusion that shook the foundation of daily life in Uzbekistan, such exchange rate of Uzbek som to the US dollar. The official exchange rate was as unemployment resulting from the privatization of state-run around 1,600 som to the US dollar. The unofficial exchange rate was higher than the official exchange rate. The exchange rate in this paper is the unofficial enterprises, the decline of social welfare, and inflation of goods exchange rate because it is what people used in their daily lives. The figure used required for everyday life, transforming individuals’ economic activity. was 2,300 som to the US dollar, the average of the unofficial exchange rate People became migrant workers in Kazakhstan, Russia, or Korea. The from April 2010 to October 2011. In September 2017, the two exchange rates were unified to the current official exchange rate. salary and job opportunities for migrant workers depended on the 80 Fumoto Sono 81 USD). Compared with others in the settlement, Sharif’s family was earning an incredible amount of income at the time that this study was conducted. Why was Sharif’s family so successful in the carpet business? To examine this question, I clarify a part of the process of the commoditization of handicrafts for the global tourism market, analyzing the factors of their success by focusing on not only their knack for entrepreneurship but also the local values surrounding the carpets. Sharif’s family’s case demonstrates that the commoditization of carpets is determined by the global tourism market and through a variety of interlocking factors such as local consumption patterns. The Situation of Handicrafts in Independent Uzbekistan and the Approach of This Paper The Handicraft Industry under the Handicraft Promotion Policy and Individual Economic Activity in the Post-Soviet Era The Uzbek government promoted the market economy through perestroika, which was spearheaded by Gorbachev in the mid-1980s and after the collapse of the Soviet Union in 1991. The collapse of the division of labor between the Soviet republics caused economic stagnation, including the destabilization of material supply and product demand and a decline in domestic production and exports. The transition to the new market economy caused a level of confusion that shook the foundation of daily life in Uzbekistan, such as unemployment resulting from the privatization of state-run enterprises, the decline of social welfare, and inflation of goods required for everyday life, transforming individuals’ economic activity. People became migrant workers in Kazakhstan, Russia, or Korea. The salary and job opportunities for migrant workers depended on the 82 How Local Handicrafts Enter the Global Tourism Market Fumoto Sono 83 economic situation in the host countries (Hasanov 2018: 6).2 The economy system (Jalilov, Annayev, and Mukhammedov 2018). Uzbek government encouraged and relied on entrepreneurs because However, Goto (2018), who researched entrepreneurship in the anyone could start a small enterprise with a small amount of capital, Sakha Republic in Siberia, has claimed that previous studies on and these enterprises solved the domestic unemployment problem entrepreneurship in the Post-Soviet area focused only on the role of and responded to market trends (Jalilov, Annayev, and entrepreneurs in the transition to a market economy in terms of their Mukhammedov 2018: 4). As a result of the legislated tax incentives talent or capital. Goto, by contrast, has insisted that their activities for entrepreneurs and small enterprises and the simplified registration are not only based on a market economy but also influenced by the procedure, the GDP of entrepreneurs and small enterprises harsh natural environment of Siberia, seasonal limitations on constituted 30 percent of the total GDP in 2000 and rose to 56.9 commodities, and the conflict between residents and resource percent in 2016 (The State Committee of Republic of Uzbekistan on companies. What we can understand from his research is that the Statistics 2017). entrepreneur is not a person who accurately understands the demands The post-independence handicraft industry in Uzbekistan was of the market economy, but one who finds his or her profits restricted supported by individuals and small enterprises with a background in by many local factors. However, amid many restrictions, post-Soviet businesses, including bankrupted state-run factories, entrepreneurs find a way to increase business and earn profits. promotion policies for entrepreneurs and small enterprises, the revival Subsequently, this paper analyzes how Sharif’s family transformed a of traditional culture, and the development of tourism. Previous local carpet into a coveted souvenir in the global handicrafts market, studies demonstrated that the commoditization of handicrafts for focusing on not only Sharif’s family’s knack for business but also the foreign tourists began after Uzbekistan’s independence and that some characteristics of carpets in the local society. artisans began to enter the global handicrafts market at that time (Kikuta 2005ab, 2013; Imahori 2006ab, 2008, 2018). The Approach of This Paper: The Discussion of Commoditization Studies on entrepreneurship in other post-Soviet republics noted in Material Culture Studies that individual economic activities that had been ignored under the The question of how a local handicraft transforms into a souvenir socialist regime became a critical engine for economic growth in the sold on the global tourism market is an important question for post-Soviet era (Berkowitz and DeJong 2005). Additionally, in tourism research. While the commoditization of handicrafts might Uzbekistan, individual economic activities are regarded as important cause the loss of local meaning and functionality, this has a variety of actors for solving economic stagnation and developing a market results: new designs and forms reflect the preferences of foreign tourists; old designs are revived; there is an increase in counterfeit copies that decreases the value of the original products; and 2 Many migrant workers were forced to return home because of the depression development opportunities for marginal areas are created (Swanson of the Russian economy due to the slump in oil prices after the collapse of Lehman in 2008.