Migration and the Development of an Industrial District:
Footwear Manufacturing in EI Porvenir, Trujillo-Peru

Waltraud Rosner
Geographical Institute
Salzburg University
Hellbrunnerstrasse 34 5020
Salzburg, Austria

ABSTRACT
Unequal socio-economic development and strong administrative centralization are two of the principal reasons that explain migration to coastal cities in Peru. Though various studies show migrants to be dependent on industry, the present analysis demonstrates how migrants can themselves establish industries that become important sectors in the cities in which they live. The case of Trujillo is presented, where strong immigrant flows from the Andes since the 1960s have produced what is now known as the "industrial district," formed of small-scale manufacturers who have made Trujillo the capital of the Peruvian footware industry.

INTRODUCTION
Peruvian migration from the sierra to the coast has, for an extended period, been generated by unequal regional development, exacerbated by the centralization of investment in coastal cities. It results from the conjunction of several geographic, economic, social and political factors manifested in what Bernex (1985, 16) has termed the litoralization, urbanization and metropolitanization of the Andean population. Although the latest national census shows decreasing migration rates (INEI 1993), absolute figures still show an overall tendency to migrate to large coastal cities.

As in many other Latin American countries, migration within Peru indicates that the movement of people from small towns to medium and large cities is essentially a search for employment or other economic reasons (Arambuni, 1982; Baehr, 1976b, 36; Ponce, 1983, 49-54). The majority of migrants move as independent members of the labor force to find work in formal industries that exist within urban centers (Quijano 1975: 119, Harris-Todaro 1970, Todaro 1981,239). Nevertheless, there are cases in which migrants create their own industries and become an important economic component within these cities (Hart, 1973, 88; Schmitz, 1989; Spaeth, 1993; Malmberg, 1988, 219). To examine this process I chose to study a case in the city of Trujillo in La Libertad department of northern Peru. In Trujillo, the in-migration that has taken place since the 1960s has contributed to the creation of what is locally called the "industrial district" composed of small and mid-sized manufacturers of footwear within EI Porvenir district. This process has made Trujillo the capital of Peru's footwear industry. The data presented here were collected during fieldwork in 1994-95.

THE GEOGRAPHICAL CONTEXT
La Libertad department is located in northern Peru, some 570 kilometers from the capital city of Lima. While its flat coastal section (some 38%) encompassing from south to north, the valleys of [end p. 107]


[end p. 108]

Chao, Vim, Moche, Chicama, and Jequetepeque provides good access, its eastern Andean zone (62%) of broken relief poses major difficulties for transportation (Bernex 1989,31) (Figure 1). Most of the populated centers of the Andean sub-region are separated from the coast by a north-south band of semi-desert, the only exception being in the province of Pacasmayo where the upper Jequetepeque unites the coast and Andes with its densely populated valley well-equipped with roads.

The most important economic activities are located in irrigated valleys on the coast (principally sugar and asparagus) and in the main settlements. The interior Andean zones, characterized by traditional agricultural practices, have been marginalized, exhibiting the highest levels of poverty and lack of basic services (Figure 2). This persistent centralization of economic activities and services in the macrocephalic regional capital of Trujillo with a population of 589,314 inhabitants (20 times the size of the second largest city of Chepen with 32,248 inhabitants) has provided a strong magnet for urbanward migrants.

MIGRATION TO TRUJILLO
The flow of migrants to Trujillo accelerated in the 1960s (Muñóz, 1983, 157) due to several reasons: the growth of industry in the city; problematic agricultural conditions affected by periodic droughts (Henríquez, 1980, 29; Minka 1994, 31); the 1970 earthquake in Ancash department, and the low quality of all levels of education throughout the region.

The redistribution of this liberteña population toward the coast in the 1960s produced the rapid annual growth of the city of Trujillo (6.81 % between 1961-1972) (Figure 3). In 1973 Trujillo already had 29 pueblos jóvenes (shantytowns) and, according to the 1970 census, it was the second city after Lima in number of shantytowns (Henríquez, 1980, 30). [end p. 109]

Although met ropolitan Trujillo's growth rate decreased in the period 1981-1993 (from 4.16 to 3.21 %; INEI 1993), it was still above the national average (2.2%). As a result, the population increased 46.1 percent (185,997) during that period (INEI 1993). In addition to its rapid demographic growth, Trujillo has also experienced an accelerated physical expansion. This has resulted in the incorporation of large parts of the agricultural Moche valley within the urban area. To the north of the city, urbanization has extended over uncultivated land of no economic use. The first barriadas or shantytowns (later known as pueblos jóvenes or asentamientos humanos) began to develop along the La Mochica canal and towards Cerro Cabras as neighborhoods without any kind of planning built by the settlers themselves. A shantytown-belt was formed along the Panamericana Norte and the Penetración a la Sierra de La Libertad highways. This belt includes the districts El Porvenir, Florencia de Mora and La Esperanza. Altogether, the population of these three districts totals 219,865, some 37 percent of the total population of metropolitan Trujillo. One of the distinctive characteristics of these districts is that they are inhabited by migrants from the same localities who share common cultural and economic characteristics. Altamirano (1992, 389) has argued that this is crucial in the creation and organization of survival strategies, as well as in the maintenance of regional identities within large urban settlements.

EL PORVENIR'S MIGRANTS
El Porvenir is the oldest shantytown in the province of Trujillo, dating from 1934 when four families settled along La Mochica canal that unites the Laredo sugar hacienda with the city of Trujillo. The disputes over land which took place at first unified the families, leading to future communal cooperation geared toward improving their quality of life. In 1961 El Porvenir became an officially recognized barriada and an urban district four years later on 8 January 1965. On 13 May 1976, under the administration of Morales Bermúdez, it declared itself a pueblo joven. For a long time El Porvenir has witnessed land invasions both by migrants from the sierra as well as from settlers (many of whom are also migrants) moving out of the slum zones of the city proper.

MIGRANT FOOTWEAR MANUFACTURERS OF EL PORVENIR
More than half of the migrant workers surveyed (53%) came from the province of Otuzco, especially from the capital district of Otuzco (19.6%), and from the districts of Usquil (7.8%), Salpo (7.8%) and Moche (5.9%). They also originated in more distant provinces (Table 1).

Migration appears to be significantly influenced by communal ties and kinship, since the majority of Andean families followed the footsteps of previous generations of migrants. Most migrants have family and friends at the destination who provide invaluable [end p. 110] information regarding employment opportunities and economic conditions (Ponce 1983, 50; Altamirano 1980). In general, the migrant establishes contact with a known group of people who facilitate adjustment. Of the migrants surveyed, 47.1 percent said that upon arrival in Trujillo they had originally lived with siblings or a family member; 35.3 percent lived in an independent house with parents due mainly to the migrant's age at the time; and 11.8 percent had lived with parents in a rented house. Nevertheless, these variations were closely related to the age of the migrants, and who accompanied them. Thus, of the 25.5 percent that migrated to Trujillo by themselves, 92.3 percent first lived with siblings or other family members and only 7.7 percent lived independently.

ORIGINS OF THE FOOTWEAR INDUSTRY IN EL PORVENIR
Footwear production in EI Porvenir began with two cobblers and later with some small-scale manufacturers who worked under contract for the large industrial concerns in Trujillo. The income of the latter was directly related to their abilities and increased in proportion to production. However, no written records exist of early footwear manufacturers because of their status as informal artisans. The first large factory, "Flor de Oro," was built in 1960. Most of its workers lived in Trujillo's shantytowns including EI Porvenir (INDES 1992). The experience earned at the factory by the workers contributed to the development of their technical and organizational skills within the network of producers that began to flourish.

Urbanward migration from the 1960s incorporated thousands of farmers to urban life. Used to wearing ojotas (rubber-soled sandals), farmers began to wear leather shoes as part of the acculturation process. At the same time, the demand for school shoes increased as children were required to wear them in the many official parades (Minka 1994, 34). Given the increasing national demand for footwear of all types, shoe-tanning factories, which obtained their leather supplies from nearby agricultural valleys, began to be established in Trujillo. In EI Porvenir, the first tanning factory appeared in 1981 (Rebaza), and it was so well-received by shoe manufacturers, that it rapidly grew to serve as the supplier to both local shops and to large stores in Trujillo.

At the end of the 1980s most footwear factories had to close their doors due to the economic crisis and the strong competition they faced from informal producers. The closure of "Flor de Oro" forced its owners to compensate its workers with machinery, tools and cash. Subsequently these same workers eventually set up their own small workshops (Vega 1989,55).

Today, the footwear industry in Trujillo consists of a conglomerate of approximately 4,600 small workshops. EI Porvenir district includes 52% (897) of these units (Minka 1994, 166). I estimate that one or two members of every household in El Porvenir are involved in this sector of the economy. Trujillo district is a far second with 22.4 percent of the factories, followed by the districts of Florencia de Mora and La Esperanza with 12.9 and 9.4 percent respectively (Minka 1994). The increasing number of industrial workshops led to the emergence of complementary industries such as workshops where sheepskins are processed (approximately 120), commercial stores (80), and manufacturers of cardboard boxes, shoe-lasts, and wooden heels, etc. Some of the factors that explain the growth of the footwear industry in EI Porvenir include: a surplus of cheap labor; simplicity of production techniques and low levels of investment required; increasing unemployment in the formal sector; existing social networks among migrant families, and the spatial concentration of footwear manufacturers in the district. [end p. 111]

SPATIAL ORGANIZATION AND CONCENTRATION OF FOOTWEAR MANUFACTURERS
During periods of recession, companies in the formal sector often fail and unemployment rises. However, in the case of footwear manufacturing in EI Porvenir, its geographic concentration and sectoral flexibility have not only allowed it to survive in times of crisis but have also allowed it to flourish and gain market share in terms of total footwear production. Its spatial concentration gives it an advantage in the supply of raw materials and services for production, training and management aid. Financial resources and, in general, information needed for success have been consistently available. EI Porvenir fits well Becattini's (1990, 132) definition of an industrial district as a "socio-territorial system of manufacturers sustained by a complex and interrelated network of economies and external dis-economies of associated costs, that share a cultural and historical past, and that involves interpersonal relations as much as relations among producers."

Machucuay (1990, 163) has argued that " ... the clustering of prosperous micro-enterprises in urban areas constitutes, in practice, entrepreneurial poles which, inevitably, attract the attention of those with entrepreneurial skills just as light bulbs attract moths .... such clustering represents spaces that promote, mold and intensify managerial skills." According to the research consortium CIEPD-MINKA, there are 897 small-scale shoe manufacturers in EI Porvenir (Table 2).

Until 1979, when El Porvenir first obtained electricity, its absence limited production to simple tools and manual equipment. Soon afterwards an extensive commercial network emerged for a variety of raw materials and products. These commercial establishments emerged along the two main roads, Avenidas Sánchez Carrión and Pumacahua (Figure 4). The manufacturers' advantage in El Porvenir is precisely due to the fact that almost half of Trujillo's commercial shops and footwear distributors are located in that district (Minka, 1994, 101). Their concentration along two roads allows bargaining to occur among buyers, and has further stimulated an influx of manufacturers to this zone.

THE FOOTWEAR INDUSTRY'S IMPACT ON THE URBAN FABRIC
An examination of the distribution of the construction materials, as well as the number of stories of the district's housing units reflects the impact of the manufacturing industry on the quality of housing in El Porvenir (Figure 5). In lower El Porvenir, especially along its main two roads, one finds a significant number of blocks of houses where the predominant construction material is brick and houses are of two or more stories. This is explained by the large concentration of economic activity in the area and the abundance of leather and other shops. The latter benefit from a market system in which the small industrialists buy merchandise on credit at very high interest rates. Nevertheless, it is interesting to note such advanced type of housing along the hills of El Presidio (to the east) and the Cerro Las Animas (to the west) in La Merced II sector, given the fact that in most marginal districts, the most common housing is of one story in precarious condition. A direct relation exists between the presence of better housing along the hillslopes and the incidence of small footwear manufacturers in this area. The fact that two-story houses are built next to adobe houses shows a capacity to generate surplus used in something other than satisfying basic needs. Results from Minka's research (1994,101) corroborates this finding.

THE HOUSEHOLD: HOME AND WORKSHOP
Almost all the workshops surveyed function [end p. 112]


[end p. 113]


[end . p. 114]

within a househols.While the capital that they have available allows large manufacturers to chose their location in urban areas with adequate infrastructure, small entrepreneurs do not enjoy such a choice. As a result, the household itself becomes capital, a resource for the entrepreneur (Machacuay 1990, 174). The infrastructure of the household allows them to reduce production costs. More often than not they benefit from domestic as opposed to commercial electrical rates; they may even obtain electricity illegally. Also, cultural patterns brought from the rural areas permeate the household-workshop. It is common to have a reduced family living space, the remainder used for a workshop and a backyard in which small animals can be raised.

The small factories in EI Porvenir emerged from certain modes of organization by migrant families that share a common and fundamental characteristic: they are family economic units. Such cultural patterns of integrating members of the family into the work process is a characteristic which is preserved in urban life and becomes the social and organizational base for the promotion of urban productive activities. This study demonstrated that of the family-owned footware workshops, some 80 percent employed at least one member of their own family. Women's participation in production and marketing is very significant since they are able to combine work at home and in the industry. Some 80 percent of the workshops employed at least one woman (mean 1.7). The importance offemale labor is also to be noted in several of the specialized finishing processes involved in the footware products such as stitching and dyeing.

In the informal sector, jobs are often based on interpersonal relations of loyalty and trust that originate in the family. Knorringa (1992) points out that "such channels of informal communication allow the exchange of information to strengthen, hence promoting an industrial environment." As a result, techniques and skills are passed on from generation to generation with a multiplier effect which converts extended families into "occupational training schools." In this survey answers to questions regarding the place of learning attests to that fact. Almost 53 percent of workers in the industry reported that they learned their skills from a relative or friend, 20 percent were following a family tradition and 35.5 percent had learned in another workshop in EI Porvenir.

One of the key characteristics of Peruvian rural families is that they do not disintegrate upon arrival in the city. Family members tend to live near each other, certainly in the same district. The tendency to live within family groupings contributes to the footwear industry since members of the extended families can complement their activities by sharing equipment and learning from each other.

The division of labor among members of the nuclear family, the contracted workers and the sub-contractor workshops, is based upon the specialization patterns of production within the district. The initial and final steps of the production process (cutting the leather and the finishing process) are usually carried out by members of the same family (women generally providing the final touches).

The concept of "job culture" attributed to migrants has been the subject of several anthropological and economic studies (Adams 1991; Valdivia 1991,92-94; Franco 1991, 108). Its origins are tied to the Andean migrants' former culture. Franco (1991: 108), for example, writes about "productive familism" when he states that:

in general, the existence of a psychological-cultural chemistry stands out, referring to the trust in their own capacity, in calculated risk, in the organization of resources based on set goals, in the opening of opportunities, and in its efficient utilization. In other words, the set of characteristics that were fundamental forty years ago when they decided to migrate from their land of origin.

Even though migrants initially lack the training and techniques for the elaboration of their industrial products, to the extent that they are foreign to their Andean cultural matrix, they show great resourcefulness in their constant search for progress and their bold will to learn anew. It is evident that small footwear manufacturing in the district of El Porvenir is characterized by specific cultural and spatial attributes: workers of Andean migrant origins; family ties and social solidarity; a specific work ethos, and the clustering of production in a significantly distinctive urban environment. [end p. 115]

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RESUMEN
La desigualdad del desarrollo socio-económico y la centralización administrativa son dos de las fuerzas principales que producen migraciones a las ciudades costeñas del Perú. Existen varios estudios que muestran a los migrantes como trabajadores dependientes en la industria. Sin embargo, en esta investigación se ha mostrado que existen otras casos don de los migrantes forman sus propias industrias y mediante ello se convierten en un sector económico importante de las ciudades donde se establecen. Para demostrar este proceso se ha escogido la ciudad de Trujillo, Perú, donde fuertes oleadas de migrantes andinos, después de la década del 1960, han contribuido al nacimiento de lo que hoy se conoce como "distrito industrial." Este está formado por pequeños zapateros quienes han hecho de Trujillo la capital nacional de la industria del calzado. [end p. 117]