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I prefer to be able to make my own choices, not have people lie to be and then do whatever they feel is cheaper. They have to pay to properly recycle, but can just sell the old shoes. This is fraud, pure and simple. They asked for the donations of shoes under false pretenses. (There's a chance it was whatever firm they paid - but then they're just willfully incompetent.)
While the exporter isn't doing anything illegal in Indonesia, the Indonesian importer certainly is (according to the explanation in the article). Abetting criminal activities in a neighbouring friendly country is rarely desirable.
While the used clothing sector provides employment to hundreds of thousands of people in less developed countries, it also damages their local textile manufacturing industry. Prices for locally produced clothes have to include both manufacturing and logistics costs, whereas the imported used clothes from Western countries are donated and can be profitably sold at much lower prices, covering only logistics.
Economies grow prosperous when there are more opportunities for economic exchange.
But having a strong textile manufacturing industry promotes the development of other adjacent industries (e.g. dyes, chemicals) that would not be able to stand on their own initially, and can output products that are useful to more than just textile manufacturing. It easier to develop a new industry if the country already has other industries that can support its growth.
In a sense, it is like a tax on clothes, paid by the consumers, funding textile-adjacent industries, but directed by private actors rather than the government. If it pays off, other things become cheaper and potentially offset the increased cost of clothes.
If this issue was isolated to shoes, and those were technically unavailable for local manufacture, then you'd probably be right. But these practices destroy all industry, leaving the people without any manufacturing base or value creation outside of cultural artifacts, and tends to keep the poor countries poor.
You haven't proposed a viable alternative. Should developed countries voluntarily stop exporting used clothing? Would that actually make people in poor countries better off?
I was explaining the problem and now not solving it is my fault.
> Should developed countries voluntarily stop exporting used clothing? Would that actually make people in poor countries better off?
Yeah, that's what the developing country said in this instance. They passed their own laws to prevent import.
And the charity promised to use the shoes for an experiment in recycling which would have brought knowledge benefits at least even if not producing a superior product. They clearly defrauded their donors regardless of Indonesian trade policies.