Read through Section, using your knowledge of system dynamics and complex systems, explain the situation in Kerala including who/what the factors are which led to this situation and explain how they are interconnected. How does one affect another? What impact will changing one element have on another and how will this affect the outcome? This should be a qualitative assessment. (Overall, we found that although globalization has had profound positive impacts around the world, the coir industry in Kerala has virtually remained unchanged for women coir workers in terms of both wages and work conditions. Based on the results of the field work, the women workers in both the small village factory (Vaikom) and the home-based cottage industry (Kadakkarappally) make meager wages, have no health care benefits, have no bank accounts or savings, and work long hours, both at their jobs and for their families, such as preparing meals and washing clothes. Only one of the three workers interviewed from the small village factory (Vaikom) had electricity in her home, but did not use it to cook with. Some of the workers had electricity in the home-based cottage in- dustry (Kadakkarappally). The women in the home-based cottage industry (Kadakkarappally) also stated that they work outside, without even a roof to cover their heads. The women also noted that they had few other work opportunities. For example, one woman noted that she used to be a tailor, but changed to the coir industry because there was not enough work. The wages that the workers earn in the small village factory (Vaikom) are generally just enough to pay for their daily expenses. For example, it was noted that the women workers in the small village factory (Vaikom) earn about 50 Rs ($1.04) per day. The amount is enough for food and daily living. In the home-based cottage industry (Kadakkarappally), the wages are even less, around 20 Rs ($0.42) per day. The workers also noted that it is much more expensive to eat now than it was years ago, indicating that wages have not kept pace with the cost of living. The other stakeholders interviewed (manufacturers, exporters, government officials, agen- cies, engineers, and researchers) believe that wages and conditions need to be improved for women coir workers. For example, the state government official stated that the spinning sector is not being given due consideration and the people receive meager wages. The official noted that three people used to share 150 Rs ($3.12); now, three people share 75-80 Rs ($1.56-$1.67). If workers do make more than 6,000 Rs ($125) in annual income, they must pay tax. In comparison, the best quality product sells for more than $100 per square foot (approximately 4,000 Rs), indicating the disparity between the final price of the product versus what women producers earn. The stakeholders (manufacturers, exporters, government officials, agencies, engineers, and researchers) also discussed several global trends that they believe negatively affect the coir industry and its workers. These trends, which were synthesized from data collected during the interviews, in- clude: (1) decreases in wages due to global competition; (2) the inability to compete due to the lack of technology; and (3) the appearance of middlemen that create layers of inefficiencies in the global chain. The stakeholders also believe that there is a great deal of potential in the global and national coir market and went on to present ideas for how they thought conditions could be improved for the key stakeholders of the coir industry in Kerala, the women coir workers. 4.3.1 Global Competition The majority of the stakeholders interviewed noted both global and national competition as key fac- tors that were hurting women coir workers. The large-scale manufacturer expressed concern regard- ing competition from other countries, in particular Sri Lanka, which he believes produces "much better fiber" at a cheaper price. He (the large-scale manufacturer) believes that Kerala's production prices must decrease to remain competitive. He also noted that high shipping and handling fees are hurting the export of coir products from Kerala. For example, the freight charges of coir mattresses are around 90% of their total value. The state government official noted that the coir industry is also seeing competition from other low-priced natural fibers, such as sea grass from China, and believes that it is only a matter of time before China takes over the carpet industry. The exporter noted that fiber and labor prices are cheaper in the neighboring state of Tamil Nadu, and because of this, many exporters are exploiting the labor in Tamil Nadu. Some exporters are even sending workers to other countries to manufacture products in developed countries at Kerala's wage rates. The state government official believes that Kerala needs to produce cheaper as well as more expensive, higher-quality products to attract users on both sides of the spectrum. The state gov- ernment official believes that the industry will be driven by market interest in either handmade products with general details or machine-made products with technical details. The agency official interviewed believes that a marketing strategy is needed, with the main objective being to cater to international market demand. It is also believed, by both the agency and the state government of- ficial, that the coir-producing countries need to join together to strengthen the industry. 4.3.2 Technology The stakeholders noted that the lack of technology was hurting women workers and their ability to compete in the global market. The large-scale manufacturer stated that Sri Lanka has been using mechanized fiber spinning for more than 40 years; whereas, the coir industry in Kerala has tradition- ally been a labor-oriented industry because of the large numbers of women workers willing to work for very low wages. The state government official noted that because women are already working for very low wages, any increases in their wages would affect the price of the product, making them un- able to compete in the global market. Therefore, they believe that technology must be implemented to increase the quality and quantity of coir fiber, yarn, and products produced. The stakeholders also noted that technology is needed to produce higher quality, standardized products to remain competitive in the global market. Coir yarn and products are currently manufactured using different processes, for different lengths of time, with different manual and mechanical techniques, and with different types of coir fiber, depending on the age and species of coconut available. The stakeholders also acknowledged the difficulties in implementing technologies in small- scale and cottage industries. The large-scale manufacturer noted how implementing technology is not as simple as simply providing the equipment; there is a need to consider other needs, such as electricity and maintenance. The state government official noted that small-scale industries could not afford to invest in current technologies. The cooperative representative also noted that space is needed to house large machines and space for storing raw materials and finished products. For example, in his coir mattress factory, he (the cooperative representative) needs to store coir for 45 days to get the necessary curling effect. Based on the interviews with the women workers, there also seems to be a great amount of resistance to technology with the women workers. The small-scale workers noted that they prefer to work by hand. They are concerned that with machines, their work, money, and wages will decrease and fear that machines can replace them. The cottage industry workers also noted that they do not want technology; they only want more wages. The women workers did have ideas for improving the work, but were afraid to share their ideas with us for fear of losing their jobs or being replaced by a machine. Overall, they are not happy with technology and do not want machines to replace them! 4.3.3 Middlemen The stakeholders also noted that women workers are being hurt because of middlemen, which are creating layers of inefficiencies between the informal and formal economy. The central government official stated, "traditional industries like coir...they are not getting better wages because there are so many interventions in between." He also stated that if product prices increase, the "price increase needs to go down to the bottom, this is the production center." The exporter, who is often one of those "interventions" stated that, "I think it is the people who are producing in this chain who do not really get anything new, additional money." Although he acknowledges problems in the indus- try, he believes that, "the middleman is very important, but doesn't do any work.")