Utilising the Internet to Improve Peasant Artisan Incomes: Evidence from Mexico

This paper examines whether the Internet can be used to improve peasant artisan incomes by connecting producers directly with global markets. The paper surveys previous research which suggests that Business to Business artisan portals within most Developing Economies have failed to deliver expected benefits. This paper identifies some of the significant obstacles to successful implementation and presents an institutional framework that provides for rational incentives. Drawing upon new institutional economics, we propose that the Internet can be the catalyst for positive change in artisan incomes. To illustrate the argument, we examine institutions within the Mexican handicraft market and highlight current challenges. The proposal presented involves readily available technology for both artisan and small retail stores to exploit their comparative advantage, leading to a sustainable model for artisan economic development.