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The Pepe Market 

by Catherine Laine
August 23rd, 2006

I have to say again that people are dressed really well. I have always noticed that folks in developing countries work their darndest to look good/presentable/nice when they go out. This fact makes some view backpackers, with their staunch hold of grunge chic, as somewhat rude. Anyway, the 3rd or 4th woman has walked by with a gorgeously trendy dress and I’m wondering where all this lovely gear is coming from. Amy S. later tells me that it is due to the ‘Pepe’ market, a market for second hand clothing. The stuff is far nicer than a lot of the things you see in Goodwill or Salvation Army. I noticed this in Guatemala as well where I scored quite a few J Crew and Eileen Fisher sweaters for $1.50 each.

A lot of the clothes come from people who are donating to charities. Apparently only a fraction goes to local charity organizations and a good deal ends up in places like Haiti, Senegal, etc. While they are not free, the consumers are getting very nice clothes at severely reduced prices. The buyers aren’t the destitute but they are still very poor by the standards of developed nations. It’s a fabulous idea. You can get old Levi’s with their connotations of cool and durability for 3% or less of the original price!

Some however say that the market for second-hand clothing hurts/decimates the local textile industry. This is a tough one and it makes one look at some the arguments for and against free trade as there are many parallels. High quality clothing that some consumers may prefer, are being imported at artificially low prices. The real cost was subsidized by previous owners: the wholesalers got them for next to nothing. This importation is negatively affecting local industry. Does the government protect the industry that is unable to compete/has an inferior product? Or does it let consumers buy what they want and find some other way to help to industry cope? Is the answer industry dependent? For example, should the way that you treat Levis, computers or Toyotas be different from cotton, sugar cane or milk? Basically do some sectors need more protection that others? How do you balance the sometimes competing interests of the consumer and the overall industry?

I’m going to totally cop out and fail to respond to any of these questions and just say that getting an $80 sweater for the price of 2 candy bars is very nice. Walking down the streets of Haiti seeing most of the general public, who have enough problems already, gleaming is their crisp and affordable gear is nicer.

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