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01 / 05
Icelanders Turn $12 Cod into $3,500 Worth of Products

Blog Post | Adoption of Technology

Icelanders Turn $12 Cod into $3,500 Worth of Products

The export value of Icelandic cod has increased 100 percent in the same time that the annual catch has fallen by 45 percent.

Iceland's Profitable Cod

Something odd has happened to Iceland’s fisheries. In Icelandic waters, cod numbers have hit a historic high. But rather than taking advantage of this bountiful fishing opportunity, the annual catch has decreased by 45 percent since 1981. Over the same period, the total export value of Icelandic cod products has increased by more than 100 percent. The cause of this peculiar and seemingly contradictory trend is partly explained by Iceland’s Ocean Cluster House or what is commonly referred to as the “Silicon Valley of White Fish.”

Overlooking Reykjavik’s harbor, Ocean Cluster House is home to 120 new marine start-ups, all of which are focused on “100 percent fish utilization.” In other words, they are businesses developing ideas that use fish meat, oil, skin, bones and intestines, to draw value out of produce that would otherwise be trashed. “From one cod we can maybe get $12 for the fillet. But if we use the whole round we can get $3,500 for each cod,” explains Ocean Cluster’s founder, Thor Sigfusson. The “value-added approach challenges the notion that a fish’s primary purpose is a fillet,” he notes.

Sigfusson objects to those who believe that “fisheries around the world need more fish to catch.” Instead, he argues that fishermen must reduce waste by utilizing the 55 to 60 percent of the fish that currently remains unused. Thanks to human ingenuity “you can do more with less,” Sigfusson explains. Here are just some of the innovative ideas that are revolutionizing the Icelandic fishing industry and proving human ingenuity can add value to previously unutilized materials and processes:

  • Penzim – a gel product made with enzymes from fish intestines; softens and heals damaged skin, and eases joint pain.
  • Alda – a lemon-flavored health drink developed using marine collagen.
  • Dropi – transformed smelly cod liver medicine into a freshly squeezed luxury good Omega 3 supplement.
  • Kerecis – makes medical bandages from cod skin. Treats wounds, burns and other tissue damage – including treating diabetic foot wounds that could otherwise become infected, resulting in amputation.
  • Omega3 Pectus – Kerecis is also working on a product to be used in breast reconstruction, replacing the nylon support string, with fish skin.
  • Reykjavik Foods – making canned fished into a luxury good by adding truffles and high-end packaging.
  • Dried fish heads, and fish carcass lamps – Ocean Cluster House sells dried fish heads for $8 in their souvenir shop, serving the niche tourist market.
  • Fish jerky – the onsite store now sells this unique type of jerky.
  • Feel Iceland – a company focusing on anti-aging cosmetic products made with marine collagen and enzymes.
  • The Cherry Tree – an art and design store selling clothing and accessories made from fish skin, including bags, belts and bowties.

Ocean Cluster House has begun to spread these efficiency-enhancing practices globally and has its eyes on North American markets, where it is currently estimated that between 40 percent and 47 percent of edible seafood is wasted. Iceland now utilizes 80 percent of each cod that is caught.

Change seen in the Icelandic fishing industry is just one example of the pioneering ways that human ingenuity can create more jobs and add greater value while using fewer or previously unutilized resources. As humanity becomes more educated, interconnected and innovative, other sectors are likely to undergo similar changes, making all of our lives more prosperous.  

World Bank | Quality of Government

Côte D’Ivoire’s Land Reforms Are Unlocking Jobs and Growth

“Secure land tenure transforms dormant assets into active capital—unlocking access to credit, encouraging investment, and spurring entrepreneurship. These are the building blocks of job creation and economic growth.

When landowners have secure property rights, they invest more in their land. Existing data shows that with secure property rights, agricultural output increases by 40% on average. Efficient land rental markets also significantly boost productivity, with up to 60% productivity gains and 25% welfare improvements for tenants…

Building on a long-term partnership with the World Bank, the Government of Côte d’Ivoire has dramatically accelerated delivery of formal land records to customary landholders in rural areas by implementing legal, regulatory, and institutional reforms and digitizing the customary rural land registration process, which is led by the Rural Land Agency (Agence Foncière Rurale – AFOR).

This has enabled a five-fold increase in the number of land certificates delivered in just five years compared to the previous 20 years.”

From World Bank.

UNICEF | Child Labor

100 Million Fewer Children Are in Child Labour Today than in 2000

“While the elimination of child labour remains an unfinished task, the latest global estimates bring some welcome news. After a concerning rise in child labour captured by the global estimates for 2020, a feared further deterioration in the wake of the COVID-19 pandemic has not materialized, and the world has succeeded in returning to a path of progress. There are over 100 million fewer children in child labour today than in 2000, even as the child population increased by 230 million over the same period.”

From UNICEF.

Blog Post | Manufacturing

Grim Old Days: Virginia Postrel’s Fabric of Civilization

Beneath today’s abundance of clothing lies a long and brutal history.

Summary: Virginia Postrel’s book weaves a sweeping history of textiles as both drivers of innovation and toil. From ancient women spinning for months to make a single garment to brutal sumptuary laws and dye trades steeped in labor and odor, it is revealed how fabric shaped the foundations of human society.


Virginia Postrel’s The Fabric of Civilization: How Textiles Made the World is the riveting story of how humanity’s quest for thread, cloth, and clothing built modern civilization, by motivating achievements from the Neolithic Revolution to the Industrial Revolution and more. While much of the book contains inspiring tales of innovation, artistry, and entrepreneurship, the parts of the book about the preindustrial era also reveal some dark and disturbing facts about the past.

In the preindustrial era, clothing was often painstakingly produced at home. Postrel estimates that, in Roman times, it took a woman about 909 hours—or 114 days, almost 4 months—to spin enough wool into yarn for a single toga. With the later invention of the spinning wheel, the time needed to produce yarn for a similarly sized garment dropped to around 440 hours, or 50 days. Even in the 18th century, on the eve of industrialization, Yorkshire wool spinners using the most advanced treadle spinning wheels of the time would have needed 14 days to produce enough yarn for a single pair of trousers. Today, by contrast, spinning is almost entirely automated, with a single worker overseeing machines that are able to produce 75,000 pounds of yarn a year—enough to knit 18 million T-shirts.

Most preindustrial women devoted enormous amounts of time to producing thread, which they learned how to make during childhood. It is not an exaggeration to say, as Postrel does, “Most preindustrial women spent their lives spinning.” This was true across much of the world. Consider Mesoamerica:

At only four years old, an Aztec girl was introduced to spinning tools. By age six, she was making her first yarn. If she slacked off or spun poorly, her mother punished her by pricking her wrists with thorns, beating her with a stick, or forcing her to inhale chili smoke.

These girls often multitasked while spinning: “preindustrial spinners could work while minding children or tending flocks, gossiping or shopping, or waiting for a pot to boil.” The near-constant nature of the task meant that prior to the Industrial Revolution, “industry’s visual representation was a woman spinning thread: diligent, productive, and absolutely essential” to the functioning of society, and from antiquity onward cloth-making was viewed as a key feminine virtue. Ancient Greek pottery portrays spinning “as both the signature activity of the good housewife and something prostitutes do between clients,” showing that women of different social classes were bound to spend much of their lives engaged in this task.

Women of every background worked day and night, but still, their efforts were never enough. “Throughout most of human history, producing enough yarn to make cloth was so time-consuming that this essential raw material was always in short supply.”

Having sufficient spun yarn or thread was only the beginning; it still had to be transformed into cloth. “It took three days of steady work to weave a single bolt of silk, about thirteen yards long, enough to outfit two women in blouses and trousers,” although silk-weavers themselves could rarely afford to wear silk. According to Postrel, a Chinese poem from the year 1145, paired with a painting of a modestly dressed, barefoot peasant weaving silk, suggests that “the couple in damask silk . . . should think of the one who wears coarse hemp.”

Subdued colors often defined the clothing of the masses. “‘Any weed can be a dye,’ fifteenth-century Florentine dyers used to say. But that’s only if you want yellows, browns, or grays—the colors yielded by the flavonoids and tannins common in shrubs and trees.” Other dye colors were harder to produce.

In antiquity, Tyrian purple was a dye derived from crushed sea snails, and the notoriously laborious and foul-smelling production process made it expensive. As a result, it became a status symbol, despite the repulsive stench that clung to the fabric it colored. In fact, according to Postrel, the poet Martial included “a fleece twice drenched in Tyrian dye” in a list of offensive odors, with a joke that a wealthy woman wore the reeking color to conceal her own body odor. The fetor became a status symbol. “Even the purple’s notorious stench conveyed prestige, because it proved the shade was the real thing, not an imitation fashioned from cheaper plant dyes.” The color itself was not purple, despite the name, but a dark hue similar to the color of dried blood. Later, during the Renaissance, Italian dyers yielded a bright red from crushed cochineal insects imported from the Americas, as well as other colors that were created by using acidic bran water that was said to smell “like vomit.”

Numerous laws strictly regulated what people were allowed to wear. Italian city-states issued more than 300 sumptuary laws between 1300 and 1500, motivated in part by revenue-hungry governments’ appetite for fines. For example, in the early 1320s, Florence forbade women from owning more than four outfits that were considered presentable enough to wear outside. Postrel quotes the Florentine sumptuary law official Franco Sacchetti as writing that women often ignored the rules and argued with officials until the latter gave up on enforcement; he ends his exasperated account with the saying, “What woman wants the Lord wants, and what the Lord wants comes to pass.” But enough fines were collected to motivate officials to enact ever more restrictions.

In Ming Dynasty China, punishment for dressing above one’s station could include corporal punishment or penal servitude. Yet, as in Florence, and seemingly nearly everywhere that sumptuary laws were imposed, such regulations were routinely flouted, with violators willing to risk punishment or fines. In France in 1726, the authorities harshened the penalty for trafficking certain restricted cotton fabrics, which were made illegal in 1686, to include the death penalty. The French law was not a traditional sumptuary law, but an economic protectionist measure intended to insulate the domestic cloth industry from foreign competition. Postrel quotes the French economist André Morellet lamenting the barbarity of this rule, writing in 1758,

Is it not strange that an otherwise respectable order of citizens solicits terrible punishments such as death and the galleys against Frenchmen, and does so for reasons of commercial interest? Will our descendants be able to believe that our nation was truly as enlightened and civilized as we now like to say when they read that in the middle of the eighteenth century a man in France was hanged for buying [banned cloth] to sell in Grenoble for 58 [coins]?

Despite such disproportionate punishments, the textile-smuggling trade continued.

Postrel’s book exposes the brutal realities woven into the history of textiles; stories not just of uplifting innovation, but of relentless toil, repression, and suffering. Her book fosters a deeper appreciation for the wide range of fabrics and clothes that we now take for granted, and it underscores the human resilience that made such abundance and choice possible.

Curiosities | Trade

The Real Story of the “China Shock”

“The total number of jobs remained largely stable in the U.S.—and even slightly increased—as people adapted to competition from Chinese trade. Trade-exposed places recovered after 2010, primarily by adding young-adult workers, foreign-born immigrants, women and the college-educated to service-sector jobs.

Lost in the alarm over jobs is that trade with China delivered substantial benefits to the U.S. economy. Most obvious are the lower prices Americans pay for everything from clothing and electronics to furniture. One study found that a 1 percentage point increase in imports from China led to about a 1.9% drop in consumer prices in the U.S. For every factory job lost to Chinese competition, American consumers in aggregate gained an estimated $411,000 in consumer welfare. This so-called Walmart effect disproportionately helped middle- and lower-income families, who spend a bigger share of their budget on the kinds of cheap goods China excels at producing.

U.S. businesses also reaped advantages. Manufacturers who use imported parts or materials benefited from cheaper inputs, making them more competitive globally. An American appliance company, for example, could buy low-cost Chinese components to lower its production costs, keep its product prices down and potentially hire more workers.”

From Wall Street Journal.