Reducing Poverty In Bali by Improving Local Industries

Much of the promise for lifting Bali's residents out of poverty lies in enhancing Bali's key industries. One such industry is the well-developed handicraft industry, which produces everything from handmade wood and stone carvings, furniture, paintings, clothing, ceramics and pottery and jewelry.

In Bali, art is everywhere, bursting from thousands of art shops, stores and galleries. The Balinese are dedicated to art -- making beautiful things is ingrained into their society.

The Balinese handicraft industry is an engine of productivity, divided into art for religions purposes, art for tourists and art for export to every corner of the world.

Until recently, the handicraft industry was one of the most robust export industries in Bali, but it now faces competitive pressures from other Asian countries. In particular, the Chinese manufacturing/cheap export juggernaut has lowered prices for handmade products throughout the world to the extent industries everywhere compete against China's low wage structure at abysmal low price points.

Because handicraft production draws from the natural skills and inclinations of the Balinese culture, it holds the promise of reducing Bali's diminishing standard of living for the average Balinese citizen.

The challenge is transforming the handicraft industry into a one that operates with modern business practices, thus helping it avoid the low price/commodity trap, while at the same time maintaining its heart and soul – the very competitive advantage, which sets it apart from other countries.