The Founding of TWIN and Twin Trading
By Olivier Le Brun
I joined the Greater London Council (GLC) at the end of February 1984 as a consultant to the "Third World Project", within the "Industry and Employment Branch" headed by Robin Murray, Director of Industry and Chief Economic Advisor. My contribution to this project continued a series of initiatives that I had undertaken with Robin: after first working together in Brighton, at the Institute of Development Studies (IDS) and within the Brighton Labour Process Group, from 1977 to 1979, we had collaborated on the establishment of the National Youth Service in the Seychelles from 1979 to 1982 and, from 1982 to 1984, on a joint operation in support of the GLC and the Department of Val de Marne (France), to keep alive the Eastman Kodak Company's industrial and research establishments in Europe. When Robin contacted me for this GLC project, I was working as a consultant, engaged both in advising local authorities in France and in supporting development projects in Africa, particularly Mozambique. I did not hesitate for a second: here was an ideal opportunity to link the North and the South on the basis of the many professional contacts I had been able to develop in Africa, Asia and Latin America over almost 20 years.
In the context of massive de-industrialisation orchestrated by Margaret Thatcher, the GLC was implementing a totally innovative industrial strategy based on production — an alternative to the Keynesian idea of boosting demand. Robin Murray's "London Industrial Strategy" included helping struggling companies to rethink their product lines with a focus on socially useful products. Central to the implementation of this strategy was the Greater London Enterprise Board (GLEB), founded in 1982, which had set up 5 technology networks with workshops where engineers, skilled workers and designers worked to improve existing products and create prototypes of new socially useful ones, in close cooperation with universities and polytechnics. On this basis, the GLEB invested in companies with funding from the GLC, its pension fund and from the financial markets. It was a major programme of industrial regeneration and job creation. The GLC had been approached by several Third World organisations, governments and local authorities to undertake economic and commercial cooperation projects.
As soon as I arrived in London, I explored the different ways in which a partnership between the GLC and the Third World might be approached.
The Thatcherite recession had led to a wholesale scrapping of industrial equipment across London. In 1982, there were 97,000 fewer machine tools in Greater London and the rest of the South East than in 1976. This discarded equipment was condemned as obsolete. However, it was often still relatively new and its purchase price had been somewhat higher than its scrap value. The idea was to identify equipment that met the needs of other countries, refurbish it, if necessary, in GLC workshops or GLEB-supported companies, and convey it to the recipient countries in exchange for products that were useful for Greater London.
The GLEB invested in many companies that were able to find markets in the Third World. For example, within the GLEB Energy Technology Network, the company RPA had developed a wind- and pedal-powered generator for Europe's remote islands. It was clear that it could be adapted for poorer countries, and that a range of equipment could be tested, and technicians trained for technology transfer. But the Third World countries were short of cash. Barter had become an established practice in international finance. It was in the GLC's power to set up an adapted exchange system.
The procurement departments of the GLC and the boroughs had considerable purchasing power. They could, for example, contribute to the purchase of food products. London was home to more than 100 ethnic minorities, whose staple foodstuffs were controlled by multinationals. With their language skills and contacts in their countries of origin, these minorities were able to help develop trade in this area.
Another route was that of fair trade, of which the basic idea was to establish a direct link between small producers in the Third World and consumers in the "First" World and thus to dispense with the whole chain of intermediaries. In this way, the income of small producers could be maximised. This approach was supported by the extensive network of social economy organisations in London.
A major problem was that of continuity. Indeed, there was a risk that political changes in local communities could jeopardise the business operations on which people’s living standards depended. The challenge for this "Third World Project" was to put in place a sustainable operational structure.
As soon as I arrived in London, I was welcomed by Ken Livingstone, the leader of the GLC, who was very enthusiastic about the idea that the link between jobs and needs — which was central to the GLC's economic strategy — could become international. He explained to me that the GLC's policy was not only in the classic tradition of the left — serving the grass roots — but was also radical in that it aimed to combat racism and all forms of discrimination against women, ethnic minorities, people with disabilities and the LGBT community. He stressed the need to carry out exemplary projects that were free from all forms of capitalist and colonial domination. After leaving that meeting, I turned around on Westminster Bridge and looked at the long sign on the façade of County Hall showing the number of unemployed people in Greater London, an astronomical figure that was rising every day as a result of Margaret Thatcher's monetarist policy. From her office in Parliament on the other side of the Thames, the First Lady was directly confronted with this verdict.
Robin put me in touch with some people who would be vital for the "Third World Project", and who were also emblematic figures of the London left, very committed to the London Industrial Strategy: the economist Michael Barratt Brown, founder and former Principal of Northern College; the engineer Mike Cooley, trade union leader who piloted the Lucas Aerospace Company's Alternative Plan, theorist of socially useful products and human-centred systems, and the banker Vella Pillay, a key activist, alongside Oliver Tambo, President of the ANC, in the anti-apartheid struggle. These three people played a decisive role in relations between London and the Third World.
In this context of economic crisis, Michael Barratt Brown insisted on the establishment of a new framework for trade and technology. Taking up the proposal of the Norwegian professor Ragnar Frisch and the Philippine economist Manuel Andres Goseco, he proposed the creation of an "International Trade Clearing Centre" which would help its subscribers develop trade between London and the Third World by acting as a conduit for useful information in both directions (on product supply and demand, stakeholders, sources of credit, etc.). This was an idea that was later to be fleshed out so as to give practical benefit to the social economy, through the publication by TWIN (Third World Information Network) of "THE NETWORK, a newsletter for the equal exchange of information on trade and technology".
Mike Cooley, Director of Technology at the GLEB, made every effort to ensure that Third World partners benefited from the GLEB's technology networks. Vella Pillay, in his position as Chief Economic Advisor at the Bank of China, was very helpful in designing appropriate financing arrangements for trade transactions between the GLC and its Third World partners. In particular, he helped Twin Trading to finalise a barter contract with Nicaragua in 1986 for the supply of rocking chairs in exchange for computers.
I focused at once on the implementation of concrete partnership projects with governments, regions, local communities and liberation movements. Here are some that were developed during the first 10 weeks of the Third World Project in early 1984: (1)
Vietnam
A delegation from Vietnam, after visiting the GLC and the GLEB, expressed their interest in obtaining tea-making machines in London. T.C. Martin Machinery Ltd, a company supported by the GLEB, developed a prototype and sent the Vietnamese delegation 2 quotations covering their C.T.C. Sliding Arm Tea Processor, and a Helix Milling and Annular Grooving Machine for sharpening the regiment rollers utilised on the Processor.
An agreement was also set up for a technological cooperation between Vietnam and the GLC/GLEB/RPA/IT POWER to develop and produce an appropriate wind-powered generator and a pedal-powered generator in Vietnam. This project was to include the following components: production by RPA in the LEEN (London Energy and Employment Network) of one prototype of each machine; testing the two generators in Vietnam; developing appropriate prototypes on the basis of the requests of the Vietnamese; production of a first order in London, of say 100 or 200; training of two Vietnamese engineers in London and the progressive transfer of the production process to Vietnam. A prototype of each machine was later sent to Vietnam through TWIN Trading Ltd.
Cabo Verde
The aim of the project was to give skilled workers who were using old machine tools, mainly lathes, the opportunity to come and work for a few weeks in GLEB Networks on good second-hand machines that they would be able to adapt to the needs of their plant. The EEC agreed to finance the workers' travel expenses and their training in London. Malta offered a switch deal: to pay the GLEB the cost of the machines in exchange for tuna fish from Cabo Verde.
Peru
We discussed two projects with the Lima Metropolitan Council:
a) An audio-visual communication project: a supply of audio-visual equipment, including second hand photocopiers, and training in this field in exchange for alpaca sweaters or tourist facilities.
b) Municipal and people's production: Lima was interested in having some technical assistance to improve its municipal enterprises, develop new forms of production and set up an organisational framework in order to implement an economic strategy.
Eritrea
Audio-visual equipment for the film production unit of the Department of Information of the Eritrean People's Liberation Front. We successfully advertised a list of equipment requested in two professional newspapers.
During the first 10 weeks of the Third World Project, I limited my contacts to a strict minimum, in order to concentrate on a few countries and projects. My main concern was to avoid creating expectations that we might not be able to fulfil. Nevertheless, during this short time, the GLC was approached, formally or informally, by at least 20 Third World organisations. This shows clearly that there was a need for an agency which could set up relationships that were free of the drawbacks of existing arrangements. Such an agency needed to inspire a deep trust in its technical capability and supportive attitude.
An interesting model was Stichting Ideele Import (SII) based in Amsterdam, an alternative trading organisation which was at the same time professional and political. It undertook the following activities:
Importing food products from the following countries: Vietnam, Angola, Mozambique, Guinea Bissau, Cabo Verde, Tanzania, Zimbabwe, Algeria, Nicaragua and Portugal.
Processing this food in Holland when necessary.
Packing and labelling. In many cases the products had to be unpacked and repacked to comply with European standards.
Exporting machines and equipment to their partners in developing countries for development projects financed by international, governmental and non-governmental aid agencies.
Providing technicians to set up this equipment in these countries.
At a GLC Festival in the spring of 1984, the Third World Project sold hundreds of wine bottles provided by Stichting Ideele Import from a Portuguese cooperative. Robin and I stood there with only one corkscrew in front of a queue of several hundred people. A flavour of future fair trade projects.
After 10 weeks, I wrote a report (1) suggesting that the GLC could create an independent organisation which should progressively undertake the activities of Stichting Ideele Import and in addition:
Import from progressive economic organisations in Europe and in other Third World countries (cooperatives, alternative projects, etc.).
Provide alternative consultancy services. Third World countries, regions and progressive organisations were in desperate need of technical expertise.
Organise new forms of technology transfer, for example through planned agreements on the lines of the one we were organising with Vietnam for the wind-powered generator.
Publish on subscription a catalogue and newsletter with offers of goods and our services for exchange.
This agency was to be part of a network comprising progressive forces of the Third World, London and other progressive Councils and institutions of the UK and Europe. The best way to set up this network was to organise an international conference in London.
In December 1984, Robin Murray, in his capacity as Director of Industry and Chief Economic Advisor, invited representatives of governments and progressive forces of 20 Third World countries and of Councils and institutions of the UK and Europe to attend a 5-day Third World Trade and Technology Conference at County Hall, from 18-23 February, 1985, concerned with new developments in trading and technology transfer, with special reference to the real needs of the Third World.
As part of this Programme, the Council established in London two non-profit making companies limited by guarantee. The first company, TWIN Trading Ltd, was to provide a service of information, promotion, consultancy, marketing, trading, technology exchange and development, training and project development to cooperate with enterprises and organisations in Third World countries and in Europe on mutually advantageous schemes. The second, Third World Information Network (TWIN), had charitable status. This company was to undertake research, compile, publish and distribute information and hold conferences in the fields of trade and technology exchange, with the aim of encouraging new forms of cooperation of equal benefit to all parties between Third World and European organisations.
Michael Ward, Deputy Leader of the GLC and Chairperson of the Industry and Employment Committee, played a key role in setting up Twin Trading and TWIN, for which the GLC provided funding for a four-year period.
Early in 1985, the following staff were appointed for the two companies: Olivier Le Brun, director; Richard Day, technology officer; John Rimmer, trading officer, and Bindi Shah, resource and network officer. The members of the Council of Management of Twin Trading Ltd were: Michael Barratt Brown (chairperson); Mike Cooley; Olivier Le Brun; Vella Pillay; Peter Robbins; Bindi Shah and Margaret Ling (company secretary).
The Conference closed at the Royal Festival Hall with a concert for equal trading with the eight-piece Senegalese band XALAM. With their extraordinarily powerful fusion of African Jazz, XALAM's drums announced to the world the birth of TWINS.
During the conference, several projects were developed, and a network of organisations was set up around the world. After the abolition of the GLC by Thatcher in 1986, TWIN and Twin Trading continued their activities for 23 years, until 2019.
July 2020
REFERENCES
(1) Report from Olivier Le Brun on “Contacts with Third World Organisations and their Interest in Trade and Technology Links with London”, Paper 4, Part I, GLC, Economic Policy Group, Pack N°.6, 1985
(2) Olivier Le Brun, “TWIN and Twin Trading: First Year’s Experience: Problems and Prospects”, 1986