The urban poor in the Global South lack access to banking and financial services, and women are disproportionately affected. They are less likely than men to hold a bank account, to take out a loan, or to borrow money. This is a detriment to development, since women are more likely to spend extra funds on their family, thereby improving food, education, and health. This series of articles profiles approaches to bridging the financial inclusion gender gap in São Paulo, Mexico City, Nairobi, Bangalore, and Dhaka. Read on to learn more, and then join the discussion below.
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Catalina Gomez, Coordenadora da Rede em São Paulo
Segundo a Confederação Nacional da Indústria, mais de um terço da população brasileira acima de 16 anos (mais de 50 milhões) não possui conta bancária nem acesso a serviços financeiros de empréstimo e poupança. A maioria daquela população afetada tem baixa renda e pouca escolaridade. Tereza Campello, a Ministra de Desenvolvimento Social tem explicado varias vezes que “ao contrário do que se pensava, os desafios da inclusão financeira não são de distância, de acesso a rede, ou de falta de correspondentes bancários. Na realidade, a população está desinformada com relação ao seus direitos”. Campello também explicou que “muitas pessoas acham que para abrir uma conta corrente é preciso um depósito mínimo, evidenciando seu desconhecimento sobre a rede bancaria”.
Tendo em conta a situação descrita pela Ministra, uma das principais prioridades do governo brasileiro durante vários anos, tem sido a redução de barreiras de informação e o desenho de produtos financeiros adequados para a população de baixa renda. Um dos principais mecanismos de promoção da inclusão financeira, especialmente para mulheres, tem sido Bolsa Família, o programa de transferências que beneficia a 13 milhões de famílias. O programa transfere mensalmente dinheiro para todas as famílias dependendo de seu nível de pobreza e número de crianças. O 93 por cento dos beneficiários direitos são mulheres, o que contribui no seu posicionamento e influencia dentro do núcleo familiar.
“Bolsa” tem uma contribuição importante na primeira etapa da inclusão financeira ao abrir uma conta bancaria e entregar um cartão para cada família. Com o cartão, os beneficiários podem retirar o dinheiro transferido mensalmente pelo programa. Para muitos beneficiários, especialmente mulheres, esta é a primeira vez que tem aceso a uma conta bancaria, contribuindo a seu conhecimento básico do sistema bancario. Infelizmente, muitos beneficiários ainda retiram a totalidade de sua transferência a cada mês e não utilizam a conta como uma verdadeira conta corrente ou de poupança.
Uma pesquisa recente sobre inclusão financeira dos beneficiários de Bolsa Família aplicada nas áreas de maior concentração de benefiarios, incluindo São Paulo e Rio de Janeiro, achou que a grande maioria dos beneficiários ainda não compreendem adequadamente as regras e procedimentos do sistema bancário precisando de maiores informações e educação sobre a matéria. A pesquisa também reportou que 65 por cento dos beneficiários têm celulares e embora o celular seja utilizado para encaminhar atualizações sobre o programa, ainda poderia ser utilizado para administrar o dinheiro e fazer pagamentos de serviços.
Caixa, o Banco de apoio na execução do Bolsa Família esta desenvolvendo uma serie de pilotos nas cidades mencionadas com vídeos educativos sobre planejamento financeiro para multheres e suas famílias e para a operação de pequenas empresas. Também está expandindo a educação financeira das crianças para que elas estejam sensibilizadas sobre a importância da poupança e da administração responsável do dinheiro.
Foto: Ministry of Social Development
Catalina Gomez, São Paulo Community Manager
The Brazilian National Industry Federation estimates that more than a third of the country’s population over the age of 16 (around 50 million people) doesn’t have a bank account and has no access to credit and saving services. The most affected are low-income populations, who have low levels of literacy and education. Tereza Campello, the Social Development Minister, has explained on various occasions that “against all odds, financial inclusion challenges are less related to distance, access to banking services, and lack of bank branches in remote areas, and much more related to the lack of adequate information about people’s rights.” Campello also added that “many low-income populations don’t have adequate information, as they think that opening a bank account requires a complex bureaucratic process and a minimum deposit. They feel that they cannot meet minimum requirements.”
Given the situation described by the Minister, Brazil’s priority in recent years has been to reduce information barriers and to design financial products and services that are appropriate for low-income populations. One of the key mechanisms to support financial inclusion, especially for women, has been the Bolsa Família program — the cash transfer that benefits more than 13 million low-income families. The program transfers monthly stipends to each family depending on their poverty level and their number of children. In 93 percent of cases, women are the main recipients of these transfer, emboldening their voices and boosting their empowerment within the household.
“Bolsa” contributes to the first stages of financial inclusion, as it provides a bank account and a card for each beneficiary family. With this card, beneficiaries can withdraw the cash that has been granted by the program. This is many women’s first time owning a bank account and a card; this initiative provides them with basic knowledge about the banking system and its operation. Unfortunately, most beneficiaries withdraw the full amount from their monthly deposit and don’t use their accounts as proper checking or saving accounts. Some families save the cash at home, while others spend it as soon as they withdraw it.
A recent study of financial inclusion among Bolsa Família beneficiaries found that beneficiaries still don’t fully understand the rules and procedures of banking, demonstrating the need for better information regarding basic banking concepts and practices. The report also highlights that 65 percent of Bolsa Família beneficiaries have mobile phones, and although the phones are currently used to contact beneficiaries about program updates, they should also be used to allow easier resource management of their bank accounts, including to pay bills.
Caixa, the bank that supports the implementation of Bolsa Família, is currently piloting educational campaigns. These include videos with accessible information on financial planning targeted to women and their families, and for the operation of small businesses. It is also extending educational campaigns to children in order to engage them early about the basic concepts of saving and adequate personal finance.
Photo credit: Ministry of Social Development
María Fernanda Carvallo, Gestor Comunitario de Mexico D.F.
En el 2013 el Banco Mundial realizó un estudio junto con Global Findex (el Índice Global de Inclusión Financiera) confirmando grandes brechas de género en el tema de inclusión financiera. De acuerdo al Banco Mundial, las mujeres son 15 por ciento menos propensas de tener una cuenta bancaria, (la cifra es mayor en mujeres en condiciones de pobreza), lo que hace que este grupo sea muy vulnerable ante el tema. Este estudio demuestra que la inclusión financiera va más allá de la apertura de cuentas bancarias, como el acceso a sistemas de préstamo y ahorro, o el pertenecer a sistemas financieros formales que abren las puertas al ingreso proveniente de otras fuentes. Asli Demirguc-Kunt, Directora de Investigación del Banco Mundial afirma que “[s]in una cuenta, a las mujeres les cuesta más ahorrar formalmente y recibir subsidios gubernamentales o remesas de familiares que viven en el extranjero.” Las mujeres son el sustento de los hogares, por lo que la falta de inclusión financiera refleja poca independencia económica y dificultad al obtener ingresos por cuenta propia.
En el estudio del Especial de Inclusión Financiera de Nextbillion y Ashoka Changemakers, CrediMUJER de Perú afirma que la inclusión financiera está relacionada con el reconocimiento de los derechos de las mujeres, el refuerzo de su autoestima, autonomía económica y control de su vida.
En este contexto, Alcance Financiera brinda servicios crediticios a la mujer generadora de ingresos en condiciones de pobreza y vulnerabilidad—a través del apoyo a la actividad productiva se genera transformación en el contexto de las mujeres. El pago de los créditos es realizado a través de la generación de ingresos de la actividad productiva apoyada.
Alcance Financiera y Pro Mujer son organizaciones subsidiarias del programa de educación financiera de la organización Freedom from Hunger (Libre de Hambre). El programa Credit with Education (Crédito con Educación) integra el acceso a las microfinanzas, combinado con enseñanzas educativas para las mujeres. El programa está basado en créditos comunitarios, incentivando a que las mujeres se unan en un grupo para recibir préstamos y así garantizar conjuntamente el pago. (En las reuniones de los grupos se depositan los pagos y los ahorros.) Además, se comparten aprendizajes y conocimientos a través de sesiones dinámicas y lúdicas sobre: mejores prácticas de negocios, diversificación de actividades emprendedoras, contabilidad básica, finanzas del hogar y estrategias de ahorro y préstamos.
Un caso de éxito, se encuentra al norte de la Ciudad de México, en el que Pro Mujer y Credit with Education apoyaron a una pequeña tienda de abarrotes de la Señora Yolanda. La “tiendita” abastece al vecindario y a comunidades cercanas, por lo que la Señora Yolanda descubrió que mientras más productos tiene en inventario, más ganancias se generan y más gente se atrae. Un primer crédito de $167 dólares ($2.150 pesos) lo obtuvo de Pro Mujer para abastecer el inventario de la tienda; al pagar el crédito obtuvo $287 dólares ($3.700 pesos) más para incrementarlo. Como parte del crédito, la Señora Yolanda se incorporó al programa Credit with Education en el que ha logrado pagar los préstamos y ahorrar para la inversión en la educación de sus hijos.
El propósito de estos programas es de incentivar a que las mujeres progresen. Esto requiere que las mujeres tomen decisiones financieras. Por otro lado, requiere que reflexionen acerca de las estrategias de crédito, de las circunstancias que las ameritan, y en las formas de ahorro y sus ventajas.
Foto: Pro Mujer México
María Fernanda Carvallo, Mexico City Community Manager
In 2013, the World Bank conducted a study along with Global Findex (the Global Financial Inclusion Database) confirming the existence of large gender gaps with regard to financial inclusion. According to the World Bank, women are 15 percent less likely to have a bank account (the figure is higher for women living in poverty), making women as a whole more vulnerable to financial exclusion. This study demonstrates that financial inclusion is far more than just opening a bank account. It includes having access to borrowing and lending systems, and being a member of formal financial systems, allowing access to other sources of income. Asli Demirguc-Kunt, Investigative Director at the World Bank, stated that “without a bank account, women have a difficult time saving and receiving government subsidies or remittances from family members living abroad.” Women are the foundation of the home, so the lack of financial inclusion leads to a lack of economic independence.
In a Nextbillion and Ashoka Changemakers study, “Financial Inclusion Special,” CrediMUJER of Peru states that financial inclusion is essential to the recognition of women’s rights, the strengthening of their self-esteem and economic autonomy, and their control over their own lives.
In this context of financial exclusion, Alcance Financiera provides credit services to poor and vulnerable women who are income earners. Women launch income-generating activities that transform their lives and help them repay their credit payments.
Alcance Financiera and Pro Mujer are subsidiary organizations of the financial education program at Freedom from Hunger. The Credit with Education program combines the access to microfinance with educational modules for women. The program is based on community credits, creating incentives for women to join a group in order to receive loans, and thus jointly to guarantee that payments are made. Payments and savings are collected at group meetings. In addition, knowledge and information is shared through dynamic and creative sessions on proper business practices, diversification of entrepreneurial activities, basic accounting, household finances, and saving and lending strategies.
A financial inclusion success story can be found north of Mexico City, where Pro Mujer and Credit with Education supported a small grocery store owned by Mrs. Yolanda. The tiendita (small store) supplies the entire neighborhood and nearby communities with groceries. Mrs. Yolanda learned that by having a fully-stocked inventory, more people shopped at her store, and more profits were generated. She was able to obtain a loan of $167 dollars ($2,150 pesos) from Pro Mujer to restock her store’s inventory. Upon paying off her loan, she obtained an additional $287 dollars ($3,700 pesos) to help her with future costs. As part of the credit terms, Mrs. Yolanda joined the Credit with Education program, where she received help in paying off her loans and information on how to save for the future education of her children.
The goal of these programs is to encourage women to transform their lives. This requires the women to make financial decisions; it requires them to reflect on their financial circumstances and where they stand, on credit strategies, and on saving methods and their benefits.
Photo: Pro Mujer México
Katy Fentress, Nairobi Community Manager
In Kenyan communities that have little of the collateral needed to access credit, a common approach is to set up savings and investment associations known as “Chamas.”
A Chama is an informal group, often composed of women, that follows a system by which everyone contributes money on a regular basis and in turn gets disbursed a fixed amount. The method evolved from the tradition of rural women grouping together and pooling their labor to work on each other’s farms.
Over the past decades, Chamas have increased in popularity: women have embraced them not only to send their children to school, undertake household maintenance, and weather them through major events and crises, but also as engines with which to forward their entrepreneurial skills and invest in income-generating activities.
As women’s priorities have changed, so have Chamas, which in time have evolved into recognized credit-worthy institutions. Major banks like Rafiki Microfinance, K-Rep, Barclays, Kenya Commercial Bank, and Bank of Africa have all begun to recognize the potential of Chamas and to create lending schemes focused on their needs.
Smaller credit institutions that provide financial mentoring, tailor-made solutions, and a more grassroots approach to lending are also getting in on the game. In Nairobi, for example, a company called Creative Capital Solutions (CCS) has since 2006 been providing cash-flow solutions to female-run Micro, Small, and Medium Enterprises (MSMEs) and Chamas.
“We initially used to also target men’s groups,” says Sadiq Dewani, the CCS Operations Director. “Unfortunately, men would all too often use the money for other purposes or turn out to be serial borrowers. We realized that women were more reliable earners and generally had around 60 percent to 70 percent returns on their investments, so we decided to cater our credit solutions specifically around their needs.”
The objective of CCS is to offer fast, flexible and, above all, manageable solutions to women’s Chamas. “We aim to provide alternative, niche solutions for women who cannot find working capital from banks that have stringent requirements, rely on collateral, and do not offer flexible options catered around the groups’ needs,” explains Dewany, who says that although major banks do lend to Chamas, the system can be complicated and groups can easily get disheartened by all the bureaucracy. “With our approach we initially focus on providing a two-week financial training program; following this, we undertake individual group background checks in order to assess their ability to pay back loans, and if they are then accepted, we formalize the group and enable it to borrow from us.”
Similarly to unsecured micro-finance loans, Chama lending usually has high interest rates. CCS has devised a methodology by which if groups pay back loans faster, they can reduce the amount they have to pay. According to Dewany, the system is working, and the fact that their repayment rates stand at around 85 percent is proof of this.
CCS has over the years helped women’s Chamas set up irrigation schemes, flour mills, bakeries, tailors, hairdressers, and tea shops. In Nairobi, they currently work with 12 different women’s Chamas situated in different corners of the city. Their loans go from as low as 30,000Ksh- ($350) to as high as 300,000Ksh- ($3,500). They are currently in the process of mutating into an established Microfinance lending institution.
“We are exploring options for increasing the level of training we undertake with individual groups,” concludes Dewani. “Although this might prove costly for us, we feel that the better trained our members are, the more they can make out of their money and, eventually, the more returns we will see.”
Carlin Carr, Bangalore Community Manager
The poor live in precarious circumstances on a daily basis. Unexpected illnesses or job losses that would put a strain on any family often leave the poor on the brink. With no access to the formal banking system, microloans have not only served to help in emergency situations, but have actually helped these families to build up savings and gain access to important, life-saving products. The loans, mainly to women, have expanded in purpose and scope since Grameen launched its rural banking system in the 1990s. Today, microfinance institutions such as Samasta in Bangalore have used the women’s groups that form the basis of lending to focus loans on other important intervention areas, including insurance, home gas connections, and water purifiers.
Samasta started in Bangalore in 2008 and in just the first two years reached nearly 77,000 clients with a 99.97 percent repayment rate. Originally focusing on India’s southern states, the institution’s goal is to expand north and reach 1.8 million people by the end of this year. The bank’s focus is to “bridge the gap between ambition and achievement for the working poor across India, by providing financial and non-financial services in a sustainable, long-term relationship to enable them to achieve a better quality of life.” Samasta has had to expand its range of products in order to keep its clients as long-term customers.
Some of the new products Samasta has added include:
- Micro Health Insurance: The United Samasta Micro Health Insurance policy protects members and their families from burdensome costs due to unexpected medical emergencies.
- LPG (Liquid Petroleum Gas) Loan: The LPG loan helps clients to move away from collecting firewood or accessing kerosene, both of which are highly polluting and dangerous to their health.
- Water Purifier Loan: Not only can lack of access to safe drinking water be dangerous, the ongoing health impacts due to water-borne illnesses can take a large financial toll on families. This loan helps families access new safe-water technologies and products for their home.
One client — 49-year-old Victoria, a grandmother — was selling fruit on the roadside. Her first micro loan with Samasta helped her to set up a fruit stall at the market, thereby increasing her income. Once she repaid her first loan, Victoria took out a second loan to invest in her granddaughter’s education. Samasta’s loans have empowered women such as Victoria to take control of her family’s health and well-being in a variety of ways, from education to household improvements to healthcare.
No longer subject to rogue moneylenders, Victoria and thousands of others are taking incremental steps to improve their daily lives and expand opportunities for their own families as well as for the next generation. The growing importance of MFIs in the lives of the poor has moved the institutional role from one of expanding income opportunities to expanding opportunities to improve the overall quality of life. This is the new MFI in India.
Photo credit: McKay Savage
অনুবাদকঃ ফারজানা নওশিন এবং নুসরাত ইয়াসমিন
বাংলাদেশের আর্থসামাজিক উন্নতির জন্য মহিলাদের অর্থনীতিতে অংশগ্রহণ প্রধান চাবিকাঠি। শহরাঞ্চলের মহিলারা বিশেষত যারা ঢাকায় বাস করেন, তারা প্রতিনিয়ত বিভিন্ন জটিল সমস্যার মুখোমুখি হন যেমন নারী সহিংসতা, অপুষ্টি এবং গর্ভকালীন শারীরিক জতিলতা; এসকল সমস্যার অন্যতম কারণ নারীদের অনেকসময়ই পরিবারের অর্থনৈতিক সিদ্ধান্ত নেয়া থেকে বঞ্চিত করা হয়। মহিলারা ঘরের সকল কাজ করে এবং ঘরের বাইরেও তাদের কাজের সুযোগ ও চাহিদা বেড়ে যাচ্ছে; কিন্তু এসকল কাজের বিনিময়ে তাদের উপযুক্ত মজুরি দেয়া হচ্ছে না। সুতরাং, বাংলাদেশ এবং অন্যান্য উন্নয়নশীল দেশের অর্থনৈতিক বৃদ্ধি নিশ্চিত করার জন্য অর্থনীতিতে মহিলাদের অংশগ্রহন অত্যন্ত প্রয়োজনীয় এবং তাদের অংশগ্রহণের জন্য যথাশীঘ্র প্রয়োজনীয় আইন তৈরি করা উচিত।
ঢাকার বস্তিতে বসবাসরত মহিলারা সাধারণত অর্থনৈতিক ব্যাবস্থার ব্যাবহার সঠিক ভাবে করতে পারেন না; অপরুন্তু ডোনার এবং এন জি ও এর কাছ থেকে যে পরিমান অর্থ আসে তা এই বস্তির মহিলারা পান না, কারণ ডোনার এবং এন জি ও এসব বস্তি মূল্যায়ন করে না। এসব মহিলারা কোন ধনশম্পত্তিও পান না এবং তারের কোন ভুমি অধিকারও থাকে নাহ। বস্তুত, খাদ্য এবং কৃষি জরিপ অনুযায়ী বাংলাদেশে কেবল ২% মহিলা ভুমির মালিক, যা প্রতিবেশী দেশগুলোর তুলনায় অত্যন্ত কম। মহিলারা পার্লামেন্টে এবং অন্যান্য কর্মক্ষেত্রে এখন কাজ করলেও ভূমিমালিকাধীন নারীর সংখ্যা এখনো অনেক কম, যা অর্থনৈতিক নিরাপত্তা রক্ষায় অত্যন্ত গুরুত্বপূর্ণ।
মহিলাদের ভুমিঅধিকার তাদেরকে অর্থনৈতিক ভাবে সবল করে তুলবে এবং তাদেরকে আত্মবিশ্বাসী করে তুলবে কর্মস্থলে সহকর্মীদের সাথে কাধে কাধ মিলিয়ে কাজ করার। বাংলাদেশে ব্রাক এবং বাংলাদেশ ব্যাংক মহিলাদের ভূমিমালিকানা নিয়ে সক্রিয় ভাবে কাজ করছে। ঢাকার বস্তিবাসীদের এলাকায় চরম দারিদ্র্য মোকাবেলার, ব্র্যাক “দারিদ্র্য হ্রাস এর সীমানা চ্যালেঞ্জিং” তার প্রোগ্রাম শুরু করছে যা ২০০২ সালের টার্গেটিং আল্ট্রা খারাপ (TUP) এর একটি অংশ।এটির মিশন চরম দারিদ্রে বাস করা মানুষদের অর্থনৈতিক এবং সামাজিক ক্ষমতার উন্নয়ন করা। এটি প্রথমে গ্রামকেন্দ্রিক প্রোজেক্ট ছিল কিন্তু এর সাফল্যর জন্য এটি এখন শহরাঞ্চলেও কাজ করে। টি ইউ পি প্রোজেক্ট মহিলাদের উপর বেশী প্রাধান্য দেয় কারণ ব্রাক বিশ্বাস করে যেহেতু মহিলারা সবসময়ই ঘরের কাজ করে এবং কম অর্থের অধিকারী হয় তাই তাদের কথার সমাজে মূল্যায়ন পাওয়ার সম্ভাবনা বেশী।
প্রকল্প শুরু করার আগে, ঢাকার সবচেয়ে অসহায় মহিলাদের সনাক্ত করার জন্য ঢাকার জুরাইন ও মোহাম্মদপুর এলাকাই একটি জরিপ চালানো হয়। এই দুই বস্তি থেকে প্রাথমিকভাবে ১০০ পরিবারকে বাছাই করা হয়, এবং ২০১২ সালের এপ্রিলে আরও তেরটি ভিন্ন বস্তিকে এই প্রোগ্রামের অন্তর্ভুক্ত করা হয়। এই বস্তিগুলোর মধ্য থেকে টিইউপি প্রোগ্রাম এমন ৩০০ পরিবারকে নির্বাচন করে যার সদস্যরা দীর্ঘস্থায়ী ক্ষুধা, অপর্যাপ্ত আশ্রয়, এবং শহুরে ও মৌলিক সুবিধা থেকে বঞ্চিত। নির্বাচিত নারীদের সম্পদ স্থানান্তর, এন্টারপ্রাইজ উন্নয়ন ও পৃষ্ঠপোষকতার উপর প্রশিক্ষণ দেওয়া হয়। ব্র্যাকের এই প্রোগ্রামের উপর তৈরীকৃত মূল্যায়ন প্রতিবেদন থেকে দেখা যাই, মহিলাদের মধ্যে সম্পদ স্থানান্থরের পরেও সম্পদ ধারণের ক্ষেত্রে উল্লেখযোগ্য উন্নতি হয়েছে। সম্পদ স্থানান্থর, টিইউপি প্রোগ্রামের একটি গুরুত্বপূর্ণ অঙ্গ কারণ এটি মহিলাদের পশু-মালিক হতে এবং ব্যবসায় মূলধন নিয়োগের সুযোগ সৃষ্টি করে দেয়। প্রশিক্ষিত হওয়ার পর মহিলারা টিইউপি প্রোগ্রামের পৃষ্ঠপোষকতায় নিজস্ব ব্যবসা শুরু করতে পারেন।
যদিও আরবান টিইউপি প্রোগ্রাম এখনো প্রাথমিক অবস্থায় রয়েছে, এরই মধ্যে তা সুবিধাভোগীদের জীবনে ইতিবাচক প্রভাবী হিসেবে প্রমাণিত করেছে। উদাহরণস্বরূপ, এক মহিলা চা ব্যবসায়ী টিইউপি প্রোগ্রামের পৃষ্ঠপোষকতায় তার আয় স্বল্পসময়ে ১০০ টাকা থেকে ৪০০ টাকায় উন্নীত করেছে। উপরন্তু, প্রোগ্রামের স্বাস্থ্য বিভাগ মহিলাদের সুস্থ ও সক্রিয় রাখবার জন্য স্বাস্থ্য সুবিধা প্রদান করে যাচ্ছে যাতে কেউ যেন মাঝপথে কাজ ছেড়ে না দেয়। এক কথায়, ব্র্যাকের আরবান টিইউপি প্রোগ্রামের প্রশিক্ষণ ও আর্থিক ইনসেনটিভ শক্তি প্রমাণ করে, আর্থ-সামাজিক অবস্থান ও ঢাকার জমি মালিকানা সুযোগ সৃষ্টির মাধ্যমে নারীর ক্ষমতায়ন সম্ভব।
Photo credit: BRAC Communications
Syeda Ahmed and Rubina Akter, Dhaka Community Managers
Finding ways to financially include women is one of the major keys to socio-economic development in Bangladesh. While women are usually responsible for household labor and increasingly for outside work and wages, they generally do not receive equal recognition or pay for their labor. In fact, according to a Food and Agricultural survey, only two percent of the women in Bangladesh own land, which is very low compared to neighboring countries. Despite women’s notable representation in the workforce, their lack of access to land ownership is one of the fundamental barriers to financial stability. Financial inclusion is therefore a high-priority policy goal for Bangladesh in order to ensure stable and equitable economic growth.
BRAC and the Bangladesh Bank are helping women gain access to financial services and land ownership. Women living in Dhaka’s slums, in particular, have very limited access to financial services, as little aid comes from the government and NGOs because the slums are not officially recognized. These women do not have access to wealth and savings, and land rights are usually totally absent. To address this problem, BRAC initiated “Challenging the Frontiers of Poverty Reduction” (CFPR) in 2010, a part of the Targeting Ultra Poor (TUP) program. Its mission is to strengthen the economic and social capacities of the people who live in extreme poverty. Initially, the TUP program was rurally based, but the huge success of the project led to its expansion into urban areas. The Urban TUP program is focused on women since BRAC believes that women have less access to wealth than men, but a greater potential to influence social standards.
Before starting the project, a survey was conducted to select the areas with the most vulnerable women in Dhaka, resulting in the selection of Jurain and Mohammadpur districts. The pilot program started off with one hundred households from these two slums. By April 2012, the program had grown to include 13 different slums. Within these slums, the TUP program selects 300 families whose members are suffering from chronic hunger, inadequate shelter, and lack of access to basic facilities. The selected women were given training in assets transfer, enterprise development, and support for enterprise. According to BRAC’s impact assessment report of the program, there is a significant improvement in participating women’s holding assets. Asset transfer is a particularly important component of the TUP strategy, as it allows women to own livestock and have business inputs. After being trained, women can then start their own businesses, supported by the TUP program.
Although the Urban TUP program is fairly recent, it already has had a huge impact on its beneficiaries’ lives. For example, one woman who has a tea business supported by the TUP program increased her income from 100 ($1.25) taka to 400 ($5) taka within a short time. In addition, the health module of the program provides health facilities, helping the women remain active and reducing sick days. In all, BRAC’s Urban TUP program demonstrates the power of training and financial incentives in empowering women through socio-economic status and land ownership in Dhaka.
Photo credit: BRAC Communications