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  • URBim | for just and inclusive cities

    Africa’s slums are growing at twice the rate of its cities. By some accounts, sub-Saharan Africa will have upwards of 332 million slum dwellers by 2015. While millions of dollars have been spent improving the conditions in Africa’s urban informal settlements and the lives of the people who live therein, overall these efforts have amounted to little more than a drop in the ocean. Join our six panelists to explore the options for stemming the growth of these sprawling settlements and improving conditions in those slums that already exist: Irene Karanja of Muungano Support Trust (SDI) (Kenya); Claudio Torres of the UN-HABITAT Participatory Slum Upgrading Unit (PSUP) (Kenya); architect, urban planner, and World Bank Municipal Development Program consultant Sara Candiracci (Mozambique); Aditya Kumar of the Community Organization Resource Centre (CORC) (SDI) (South Africa); Jhono Bennett of the University of Johannesburg (South Africa); and Marie Huchzermeyer of the University of the Witwatersrand (South Africa).

    Click on the pictures of the panelists to see each panelist’s perspective below.

    Executive Director of Muungano Support Trust, a secretariat of the Shack/Slum Dwellers International Federation (SDI) (Kenya)

    Over the last 25 years, slum dwellers from cities in Africa have successfully mobilized into collections of Federations of the Urban Poor.

    These federations have collected their own financial resources in the form of savings and data pools, creating citywide profiles and extensive slum censuses. Unknown to the world, slum federations have managed to produce a large volume of documented knowledge about themselves that has transformed how the government delivers important services to its poor citizens and how financial instruments can be innovated by financial institutions to serve the needs of the poor.

    Using data collected from the profiles and censuses, Muungano Support Trust, a local NGO working with the federation of Kenya, has provided advisory services to the Government of Kenya and the World Bank, in order to help them intervene and provide housing solutions to over 10,000 families in the Kibera and Mukuru areas of Nairobi.

    The trust has also worked with university planning schools from the local and international academia community to influence how transforming planning discourse can untrap informal human settlements from the snares of historically rigid city planning standards.

    The private sector has grand opportunities to turn urban poor communities into important players within the city. Financial resources from the poor are beginning to challenge and put pressure on the private sector to innovate solutions. Federations have interventions that are facilitating this to happen.

    Data collected by communities with the support and technical capacity of organizations such as Muungano Support Trust, shows that there is a missing link that government interventions are not able to fill and development assistance is failing to cover.

    Insecurity of tenure remains one of the biggest challenges to improving the lives of slum dwellers in Nairobi. The government needs to release land for human settlement, whether it be public, private, or contested. If this does not happen, development aid will continue to subsidize the costs required for technical services to innovate various kinds of solutions for what are essentially locked scenarios!

    Irene Karanja is the founding Executive Director of Muungano Support Trust (MuST), a secretariat of the Slum/Shack Dwellers Federation in Kenya. She is a specialist in participatory research, community organizing and capacity building for the urban poor. For over six years, she has transformed the use of participatory techniques for data collection into a major instrument for planning the upgrading of slums. She has organized a strong constituency of slum dwellers to assume leadership of these settlements through savings groups, housing cooperatives and women’s associations.

    Architect, UN-HABITAT Participatory Slum Upgrading Programme (PSUP) (Kenya)

    African countries represent the majority of the least developed countries (LCD). Taking into account the fact that in most of these countries, the urban population growth is expanding at a faster pace than the national one, it is important to make three considerations in answering the question: “What will it take to make slum upgrading work in African urban centres?”

    Governments should be prepared to ‘give away’. National and local governments should weigh out the costs and risks of perpetuating the status quo and should fulfill the right of adequate housing for all at a pace that copes with the increase in poor urban households. They should prioritise, for example, the free provision of land for the urban poor, in the understanding that there will be no real estate profit and that no particular individual will benefit — a challenging task in a context where African post-independence elites have generally improved their own lives with little regard to equity and social justice.

    Strategies for the provision of adequate housing for the urban poor should go beyond market logic. In trying to come up with housing strategies that appeal to investors, the focus has shifted from the upgrading of the slum dwellers’ living conditions to the beautification of particularly degraded areas. This unchaining of a series of transaction costs results in a gentrification process that relocates the problem without giving it a solution. Slum upgrading strategies should strictly be conceived through a human rights approach.

    Adequate housing strategies should trigger self-relief dynamics in overcoming poverty. The problem of urban poverty is too big to miss the opportunity to engage concerned communities in devising its solution. The Latin-American slum upgrading experience has demonstrated that giving the right initial impulse to poor urban communities actually encourages a progressive and proactive self-upgrading attitude in slum residents, reducing the need for government funds to improve the living conditions of the urban poor. A strong involvement of the community can also help to reduce the risk of benefiting the wrong people, a common shortfall in superficially planned slum upgrading interventions.

    Claudio Torres is an architect with 10 years experience in the field of slum upgrading and housing in an African context. His work has taken him from the slums of Nairobi to settlements in Somaliland and South Sudan where he has worked as an architect, monitoring and evaluation expert, project manager, and construction expert. Torres has worked extensively in Nairobi’s Mathare valley slum with the Italian NGO COOPI, helping to set up an office in the field from which he coordinated a series of different programs. He is currently a consultant for the Participatory Slum Upgrading Program (PSUP), a division of UN-Habitat.

    Architect, Urban Planner and Consultant, World Bank Municipal Development Program (Mozambique)

    Urbanization in Africa is growing and national governments and local authorities are faced with the challenge of guiding cities’ growth while dealing with other constraints, including limited financial resources; weak institutional, management, and technical capacities; lack of proper urban policies and financial mechanisms to mobilize and regulate investments.

    To strengthen the ability of African cities to generate wealth, prosperity, and economic and human development, national governments and local authorities need to define a clear vision for the future of their cities and their informal settlements.

    Cities must be seen and treated as complex organisms whose elements are interconnected. Informal settlements should be seen as an integral part of this organism, and not as a “sick body” to be fought. They constitute a precious resource for the city and its population and must be included in the urban grid.

    Each and every stakeholder, whether it be the national government, local authorities, civil society, the community, the private sector, or the donor community, have a role to play and must be partners in the development and implementation of this vision for the city. In particular, the active participation of the local community is essential in finding lasting solutions, and to guarantee ownership and sustainability, social cohesion, and integration.

    The implementation of comprehensive and integrated improvement plans in informal areas would be ideal; however, it takes a long time and requires considerable financial resources. Considering the constraints in local financial and institutional capabilities, it is preferable to adopt an incremental approach, whereby small-scale interventions are first envisioned and planned in an extensive development plan, and then are carried out gradually through community participation.

    Priority must be given to the improvement and provision of infrastructure, basic services, accessibility, safety, and the creation of economic opportunities. Concurrently, special attention should be given to outdoor public spaces, where a vital part of the community’s social, cultural, and economic activities is conducted. Improving these spaces would improve the framework of daily life and bring dignity, beauty, and utility to informal and poor areas with minimal resources.

    Sara Candiracci is an architect and urban planner with 10 years experience in the design, management, and implementation of several urban planning and slum upgrading projects in Latin America and Africa with different organizations including UN-Habitat, the Inter-American Development Bank, and various NGOs. She is now working at the Municipality of Maputo, Mozambique, as Urban Planning Advisor for the World Bank Municipal Development Program. She is also conducting her PhD research on the potential use of urban cultural heritage in urban regeneration and planning, considering Maputo as case of study.

    Deputy Director, Community Organisation Resource Centre (CORC), an affiliate of Shack/Slum Dwellers International (South Africa)

    Over the last 20 years, the South African government has been hailed as having the most progressive housing and poverty policy environments in the continent. Besides making welfare grants available to previously marginalized communities, it has made provisions to provide housing to any citizen earning under R3,500 ($350)/month.

    Although more than 2.3 million subsidized homes have been built across the country, the impacts of the housing policy have fallen short. Informal settlements have gone up by 900 percent (from 300 to 2,700) while there are an estimated 2.1 million people on the waiting list for state-subsidized housing.

    Realizing the constraints of the housing program, the State has rapidly shifted its emphasis to informal settlement upgrading. New regulatory frameworks like Outcome 8 have been developed to allow for provision of basic services and tenure rights.

    While the aims of Outcome 8 and its aligned policies have been well defined, in my view there are still gaps in addressing the bigger issues. Firstly, how incremental informal settlement upgrading is implemented must be defined: are we trying to address tenure rights or basic services, land or housing, dependency on the state or self-reliance through livelihoods? Secondly, there is the manner in which informal settlement upgrading is being rolled out. Currently it doesn’t account for strong community, civil society, and NGO participation, nor does it address the broader issue of project finance, outsourcing, and party politics.

    The process of upgrading is about learning and letting go, about making space for communities to innovate with the state, about creating a city-wide network/movement that can change the spatial patterns of the city and strengthen citizenship.

    Aditya Kumar is the technical coordinator and deputy director for the Community Organization Resource Centre (CORC), affiliated to Shack/Slum Dwellers International, currently working with informal settlement and backyarder dwellers of South Africa. His previous experience has included post-war reconstruction of Palestinian refugee camps (Lebanon), post-earthquake disaster housing reconstruction (India), affordable and social housing and large urban development projects (Los Angeles and Boston). His work has fostered multi-stakeholder partnerships between local communities, CBOs, government bodies, academic institutions, and International NGOs, with a key focus on strengthening community-driven design, planning, and implementation. The reconstruction of Palestinian refugee camps has also been shortlisted for the Aga Khan Award for Architecture.

    Architect and Lecturer and Researcher, University of Johannesburg

    The National Development Plan’s Outcome 8 agreement is behind the South African government’s current shift towards in situ housing upgrading as a means of redevelopment. This goal of upgrading 400,000 informal settlements has been developed under the mandate of the National Upgrade Support Program.

    Large-scale construction consortiums are working alongside the government, in collaboration with various planning, architectural, and non-governmental entities on the current Reconstruction & Development Program.

    While these initiatives are creating an institutional framework to begin addressing the needs of informal settlement residents in South Africa, there is little focus across the board on training effective practitioners who can play crucial intermediary roles not only in informal settlement upgrading but also in the nation’s spatial redevelopment.

    From my experience in this field, it seems that there are a disproportionately small number of practitioners who have the understanding, experience, or empathy required to engage with the dynamics of informal settlement communities and the complexity of working within the social, economic, and political intricacy that exists between grassroots entities and government structures.

    A major factor for this condition is related to the lack of opportunities for spatial design practitioners (engineers, architects, planners, etc), to be exposed to these complex environments. As a result, many ‘professionals’, as well as many government officials, often display dangerously simplistic views on how to ‘fix’ the problems at hand.

    From my work and experience in academia and the NGO sector, I believe that empathetic spatial design practitioners hold the key position to engage effectively at the ‘community’ level while addressing the larger spatial inequalities of post-apartheid South Africa.

    My aim lies in understanding and sharing contextually appropriate training, practice, and precedents through critical engagement with South Africa’s residents of poor and unsafe living conditions in order to further develop this ‘additional role’ for socio-technical spatial design practice.

    Jhono Bennett is an architect who works at the University of Johannesburg as a part-time lecturer and Independent researcher, while managing the operations of 1:1 — Agency of Engagement, a non-profit entity which he co-founded to provide a design-based collaborative service between grassroots organizations, professionals, academia, and government.

    Masters Program in Housing at the School of Architecture and Planning at the University of the Witwatersrand (South Africa)

    Internationally, there has been unprecedented focus on ‘slums’ in the new millennium. In southern African cities, informal settlements are certainly a concern, although in Anglophone countries the legacy of British colonial planning has to some extent kept these settlements out of middle-class sight. Where informal settlements have intruded into visible locations, as for instance in Lusophone Luanda, recent efforts have been made to remove these to the city periphery. In South Africa, a somewhat reverse government discourse targeted ‘visible’ informal settlements for ‘in situ upgrading’. This approach was adopted by the high profile N2 Gateway Project in Cape Town, which originally targeted all informal settlements that lined the motorway from the airport to the historical city centre for upgrading. In the years that followed, this project morphed into the Luandan approach — the removal of visible informal settlements. In the Cape Town case, removal was to a controlled decanting camp on the far side of the airport. Yet the public was told that the commitment remained to ‘in situ upgrading’. The term was simply given a new meaning, namely for the state to demolish and then build new housing to modern standard for a different clientele.

    With this juxtaposition of informal settlement treatment in Angola and South Africa, I’d like to provoke debate on the core meaning of ‘informal settlement upgrading’ as well as the political uses associated to the meaning. For me, the essence of in situ upgrading is the recognition of two important points. One is that the unevenly developing economies in southern Africa, in the absence of radical change, will not facilitate the replacement of all informal settlements with planned and fully serviced residential developments for the households currently in these settlements. This recognition prevents ‘wishing away’ the reality of urban informality. The other is that informal settlements result out of determination, initiative (often collective), creativity, and complex decisions by poor households. These must be respected and supported where possible.

    Marie Huchzermeyer convenes and teaches in the masters programme in Housing at the School of Architecture and Planning at the University of the Witwatersrand. This base has allowed her to provide support to rights-based struggles from within informal settlement for ‘real’ in situ upgrading. Her recent work includes a 2011 book “Cities With ‘Slums’: From Informal Settlement Eradication to a Right to the City in Africa,” and a comparison with Brazil in a 2004 book, “Unlawful Occupation: Informal Settlements and Urban Policy in South Africa and Brazil.”

  • URBim | for just and inclusive cities

    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.

    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

  • URBim | for just and inclusive cities

    As 2013 draws to a close, it is a good opportunity to reflect on what we have learned from cities in the URB.im network during the last year. Some of our community managers discuss the benefits of increased citizen participation in the planning and implementation of urban initiatives. Others highlight the effectiveness of programs that build the capacity of youth and women to be agents for poverty alleviation. Many discuss how to ensure that the benefits of economic growth and urban improvement extend to the most marginalized residents. Continue reading to learn more about our lessons learned and join the discussion to share your own.

    Carlin Carr, Mumbai Community Manager

    This time last year, a horrific event took place in India. A young girl and her male friend took a late-night bus ride in Delhi after a movie; it ended up being the girl’s last. In the bus, she was gang raped and so brutally assaulted that even an emergency medical flight to Singapore couldn’t save her. The incident sparked national and international outrage; protestors poured into the streets of India’s major cities to force more stringent laws to protect women against violence.

    Months later, a female photojournalist out on an assignment in an abandoned mill area in the center of Mumbai endured a similarly brutal assault and gang rape. As it turns out, the men had done this to ragpicker women in the area before, but few women, especially the poor, feel comfortable stepping forward. Mumbai has always been touted as a safe city for women, but incidents like these have rattled this sense of security.

    While legal frameworks, training for police officers, and educating men are all key areas in reducing violence against women, urban planning also has a large role to play. For women to feel safe in India’s urban environments, city planners need to ensure that appropriate infrastructure is in place to help women feel safer and more secure in — and to feel that they are a part of — urban India. Here are five key areas to address:

    • Transport: Women-only train cars have been a great addition in Mumbai; in Bangalore, sections of the buses also are reserved solely for women. These measures reserve safe spaces for women and signal that women are encouraged to travel in the city.
    • Lighting: Dark streets create an unwelcoming environment for women, and the lack of lighting also jeopardizes their safety. Streetlights are needed not only throughout main roads and thoroughfares, but also in informal settlements, where darkness hovers once the sun goes down.
    • Activity: Despite the antagonistic relationship that many Indian cities have toward street vendors, their presence brings a vitality that increases women’s security. Delhi proposed an initiative last year to create vending areas near metro entrances. Initiatives of this type, particularly around transport stations, will go a long way in creating a city that is not only vibrant, but also safe.
    • Passageways: Although crossing roads in Mumbai is risky, the underground passageways that allow walkers to traverse busy intersections are much scarier, especially for women. Some in the city seem much friendlier than others, with good lighting and security officers posted, but many others are dark and dank.
    • Sanitation: We recently reported on the abysmal toilet situation in Mumbai, where there is only one toilet seat for every 1,800 women. Even when there are toilets available, women and young girls often have to walk great distances or choose a dark and secluded area in order to have some measure of privacy. Providing proper sanitation preserves people’s dignity, but it also will go a long way toward reducing the risk of violence against women during this necessary act.

    Many of these measures are low-hanging fruit in the larger urban planning needs of the city. They are economically feasible and don’t require large infrastructure overhauls. Brighter, more vibrant and welcoming cities will benefit the entire citizenry and go a long way toward making women feel comfortable engaging in their urban environment.

    Photo credit: erin

    Katy Fentress, Nairobi Community Manager

    On the 12th of December, Kenya celebrated Jamhuri (Independence) Day. The event came at the end of a year that played host to a roller coaster of emotions for all those who have a part of themselves invested in this country.

    Nairobi’s 2013 was a year that witnessed impressive progress in terms of infrastructure development, but in which the government made no significant progress on providing services to the city’s numerous slum dwellers. It was a year in which Nairobians came together in great shows of unity, but also saw neighborhoods turn against each other; a year of victories and pride, but also one of great loss and shame. 2013 was the year in which it became clear to what extent corruption puts everyone’s security at risk and the year that the term “Silicon savannah” began to gain serious traction in the business world.

    Politics, technology, infrastructure development, and finance ruled the discussion board in 2013 and laid important cornerstones for future discussions on how the country will develop and evolve.

    In politics, Kenyans collectively held their breath for three months in the run-up to the elections. Come Election Day in Nairobi and the rest of the country, people eager to be counted queued for hours in the sun and dust in long peaceful lines. As radios and TV channels preached the mantra of non-violence — occasionally at the expense of the truth — the #KOT (Kenyans on Twitter) hashtag acquired prominence, and people flocked to social media to vent grievances or poke fun at the international press.

    Nairobi Governor Evans Kidero was voted in on a slew of electoral promises — amongst which, to improve service delivery to the capital, improve the living standards of slum dwellers, and address the problem of Dandora, the city’s overflowing dumpsite. Ten months after elections, the promises are yet to be met: Kidero has held meetings with representatives of Nairobi’s different slums, where he reiterated his commitment to increasing employment opportunities for youth; his wife has made public donations to various slum orphanages; and the Dandora question is under discussion.

    Yet lack of communication between the lands ministry, the Governor’s office, and interested stakeholders resulted in Nubian settlers from Kibera slum not being issued title deeds they had been promised, and the lighting, security, and city-wide cleanup residents believed would take place failed to materialize.

    In infrastructure development, despite a few hiccups, work on Nairobi’s southern and eastern bypasses continued to move forward, as did the construction of Nairobi’s new international airline terminal, which was launched in December despite the chaos that followed the burning of the arrivals terminal in August this year. The Nairobi light commuter rail network opened a new station, the Safaricom Kasarani stadium was brought to completion, and Machakos county (part of the city’s larger metropolitan area) unveiled its ambitious development plan and how it intends to create Machowood, Kenya’s first dedicated film production studios.

    Progresses in technology were routinely feted, the term “Silicon Savannah” became increasingly popular amongst technological investors eager to branch into the burgeoning African market, and Microsoft and IBM moved their African headquarters to Nairobi. Yet people’s trust in technology took a strong blow after the hyped-up IEBC e-voting machines routinely broke down over the election, prompting pollsters to return to a more traditional and easy-to-tamper-with ballot system.

    Finance went from strength to strength as the Kenyan stock market continued to rise throughout the year and the government began to recognize that the most sustainable form of development was the one that came from the grassroots. As a result, efforts were stepped up to invest in youth and women’s savings groups through the newly introduced Uwezo Fund.

    Photo 3: Javi Moreno. Photo 4: Damiano Lotteria.

    Olatawura Ladipo-Ajayi, Lagos Community Manager

    Lagos is the most populous city state in Nigeria, home to over five percent of the nation’s 166 million residents, and ever growing. To manage this large group of people and to create an environment that is not only safe and accommodating but also filled with opportunities for improved living and continuous growth, the state government and various civil society organisations have spent 2013 working on a number of ingenious projects to achieve these goals.

    Makoko’s slum clearance, part of the city’s effort to make the city safer and more modernized, illustrates the importance of considering the social impact of urban planning and growth projects. The economic and social effects of this slum clearance on the communities are grave: residents become displaced, lose their shelter, sense of safety, and livelihood. Other initiatives in Makoko have been more successful: the innovative floating school project plans to make education more accessible to slum residents.

    While some projects face strategic planning and implementation flaws, many of them are not only well-intentioned but also successful. Some of these projects include the Youth Empowerment and ICT Center, the Vocational Training Skills Acquisition Center, and the Real Women’s Foundation empowerment program. These programs focus on providing marginalized populations with skills and opportunities to alleviate poverty and to contribute productively to society. While the city and the ICT center’s programs such as the Urban Youth Empowerment Program focus on youth, the Real Women’s Foundation “peace villa” rehabilitates women and also provides life-skills training. Both programs encourage entrepreneurship and employment, an efficient way of alleviating poverty, and have recorded great success.

    Lagos has a magnitude of opportunity to improve the lot of its marginalized urban residents. While progress is being made in various aspects, such as transportation, health care awareness, and employment creation, it is important that urban planners and officials consider the impact of rapid progress on every class of its citizens, so as to avoid situations like those that arose with the slum clearance in Makoko. The urban future is very bright for Lagos; we have learned that, with adequate planning and proper social impact assessment, it is possible to create development solutions that do not leave certain groups of the society in the dark. With this in mind, Lagos can continue to make strides towards being a just and inclusive city in 2014.

    Photo credit: Roy Luck

    María Fernanda Carvallo, Gestor Comunitario de Mexico D.F.

    A lo largo del 2013 comentamos sobre diversas estrategias de inclusión y de superación de la pobreza en la Ciudad de México. Si bien las soluciones son variadas e innovadoras, un factor central en la solución de estos problemas es el involucramiento de la participación de la población que vive las situaciones de conflicto; puesto que desde un enfoque de participación para el desarrollo, ellos son los expertos que priorizan e identifican las necesidades y áreas de oportunidad de su desarrollo.

    Por ejemplo, el mapeo comunitario en Nezahualcóyotl, facilitado por la Universidad de las Américas, identificó las variables de vulnerabilidad de la población; al igual que los pobladores de San Andrés Totoltepec en Tlalpan, impulsado por la Organización Fomento Solidario de la Vivienda (FOSOVI). Los habitantes de ambas localidades realizaron un diagnóstico comunitario para visualizar las carencias sociales que debían de satisfacer, así como los recursos disponibles para obtener soluciones. En este sentido, se da evidencia de que la misma población que se encuentra en situaciones de vulnerabilidad, puede generar sus propias soluciones y así ser una comunidad que desarrolla estrategias de vida. El factor elemental en estos modelos de desarrollo local ha sido la intervención de actores externos, como las organizaciones de la sociedad civil, que habilitan mecanismos que cohesionan el capital social de las personas y empoderan para que la población descubra su capacidad.

    Hoy en día, la agenda de desarrollo rompe con el paradigma de los enfoques de políticas públicas desde arriba, para focalizar los esfuerzos en metodologías que permitan vincular a los diversos actores que juegan un rol activo en la promoción del bienestar. En este sentido, Enrique Betancourt, urbanista de la Ciudad de México, nos compartió en una entrevista, que uno de los grandes retos para esta ciudad es un paquete de acciones coordinadas — estrategias que integren el equipamiento e infraestructura con programas sociales y con un fuerte componente de participación ciudadana. Así mismo, la inclusión de la población marginada, como una tarea de planeación urbana, está relacionada con garantizar a las personas el derecho a la ciudad. Es decir el tutelaje de que todos accedan a los beneficios de vivir en comunidad, lo cual impulsa cambios de manera más rápida y eficiente. De acuerdo a Betancourt, es necesario borrar las barreras institucionales, sociales, y físicas que promueven que hasta ahora se dividan los ciudadanos de primera y segunda clase. Para lo anterior, es necesaria una sinergia de actores y del fortalecimiento de la capacidad de las organizaciones sociales para ofrecer la atención de servicios de manera descentralizada y abarcando a la población que aún no ha podido ejercer su derecho.

    Una Ciudad debe de erigirse sobre la inclusión y participación de sus pobladores; de tal manera, para el 2014 debemos tener en la mira que la planeación urbana debe de ser un acuerdo pactado entre los ciudadanos y las autoridades sobre el papel que la Ciudad de México desempeñará, a fin de que la ciudadanía sea participativa en el cumplimiento de esa visión.

    Foto: FOSOVI

    María Fernanda Carvallo, Mexico City Community Manager

    Throughout 2013 we discussed various inclusion and poverty reduction strategies in Mexico City. While the solutions discussed are varied and innovative, a key factor is the involvement of the population through active participation. By participating in the development of their community, citizens share their expert knowledge, which prioritizes and identifies needs, as well as areas of opportunity and development.

    One good example is the community mapping in Nezahualcóyotl, facilitated by the University of the Americas: the initiative successfully identified the population’s vulnerability, as with the population of San Andrés Totoltepec in Tlalpan, led by the Organización Fomento Solidario de la Vivienda (FOSOVI). The inhabitants of both towns conducted a community assessment in order to show the social gaps that needed closing, as well as the resources available to meet the possible solutions. This shows that citizens living in vulnerable situations can in fact generate their own solutions and thus be a community that develops livelihoods. The essential factor in these models of local development is the involvement of external actors such as civil society organizations, which help to unite residents’ social capital and empower them to discover their own potential.

    Today, the development agenda shatters the paradigm of top-down public policy approaches in order to focus on methodologies that allow the linking of various stakeholders who play an active role in promoting wellness. Enrique Betancourt, an urban expert from Mexico City, said during an interview that one of the great challenges that the city faces is a package of coordinated actions: strategies that integrate supplies, infrastructure, and social programs with a strong component of citizen participation. Moreover, the inclusion of marginalized populations is related to guaranteeing residents the right to the city. This means that all citizens must have access to the benefits of living in a community, which in turn drives changes to happen more quickly and efficiently. According to Betancourt, it is necessary to remove the institutional, social, and physical barriers that promote divisions between first- and second-class citizens. For this, it is necessary to have a synergy of actors and to strengthen the capacity of organizations that provide decentralized social care services.

    A city should be established on the principles of inclusion and participation. Therefore, in 2014 we must look to urban planning to reach an agreement between citizens and authorities on the path that Mexico City will take, so that the entire population participates in the fulfillment of this vision.

    Photo: FOSOVI

  • URBim | for just and inclusive cities

    Para muitos empreendedores dar início a uma microempresa é um grande desafio. É ainda um desafio maior para aqueles microempresários de baixa renda, os quais geralmente não tem como receber crédito do sistema bancário tradicional pela ausência de garantes, e quando conseguir, os juros do crédito estão acima da media. Leia mais ou discutir.

    For many entrepreneurs around the globe, starting a new business is a great challenge. Launching a new business is even harder for micro-entrepreneurs from low-income communities: they generally lack access to credit because they have no guarantors. When they do manage to get credit, the interest rate is often much higher than usual, limiting the possibilities to launch a business and to live off it. Read more or join the discussion.

    Submitted by Catalina Gomez — Mon, 05/13/2013 – 00:00

    Grameen Bank is one of the most successful experiments in extending credit to Bangladesh’s poor. Many have used microfinance to pull themselves out of poverty. The beginnings of Grameen Bank can be traced back to 1976, when Professor Muhammad Yunus, the head of the Rural Economics Program at the University of Chittagong, launched a research project to examine the possibility of designing a credit delivery system to provide banking services for the rural poor. This research project grew, and as of 2011, Grameen Bank’s 23,144 employees serve 8.349 million borrowers (97 percent of which are women) in 81,379 villages, covering more than 97 percent of the total villages in Bangladesh. Read more or join the discussion.

    Submitted by Editor — Mon, 05/13/2013 – 00:00

    أثبت التمويل الأصغر المعروف ب’microfinance’ أنه من الأدوات الأكثر فعالية لتشجيع الفقراء على النمو الاقتصادي. من إحدى أهداف ما بعد الثورة في مصر هو النمو الذي يشمل جميع فقات الشعب، و قد يخلق التمويل الأصغر النمو الشامل الذي يؤدي إلى زيادة فرص العمل وإنتشار العدالة الإجتماعية. هناك حاليا أكثر من ٤٠٠ مؤسسة للتمويل الصغير في مصر، مما يجعل التمويل الأصغر من الخدمات الرئيسية التي تساعد الفقراء.

    Submitted by Howaida Kamel — Mon, 05/13/2013 – 00:00

    Mobile phone usage is growing and new service models emerging. Some hold great expectations for how the growing ubiquity of mobile phones will solve many problems related to poverty in the developing world. Positive impacts cited include disaster relief, banking for the poor, disease management, literacy, commute flows, as well as government accountability and delivery of services. A recently published book, The Great Indian Phone Book, examines what might prove to be the most disruptive communications device in history. In this early stage of the mobile phone revolution, new opportunities for micro enterprise are growing. Read more.

    Submitted by Tracey Grose — Wed, 05/01/2013 – 09:53

    The Indian nation is determined to meet its goal on financial inclusion. How financially inclusive is the city of Mumbai?

    As the financial capital of the country, Mumbai, with a population of 18.8 million, has more than 1,600 bank branches. But when it comes to the poor and informal sector workforce, let’s see how it fares.

    Submitted by Rakhi Mehra — Tue, 03/12/2013 – 05:42

  • URBim | for just and inclusive cities

    Catalina Gomez, Rio de Janeiro Community Manager

    Rio de Janeiro tem boa cobertura de serviços de água, com só 1,5 por cento dos domicílios cariocas (32,908) sem serviço adequado. A cidade também tem avançado na ampliação da cobertura da rede de esgoto na passada década. Segundo Rio Como Vamos, no ano 2000, cerca de 21 por cento dos domicílios do Rio (387,367) não tenham conexão de esgoto. Em 2010, o indicador de famílias sem esgoto desceu para 5 por cento (109,258 domicílios).

    Dando uma olhada no mapa de cobertura destes serviços, é interessante conferir que as áreas centrais são aquelas com melhor cobertura, pois historicamente o centro da cidade tem apresentado melhor cobertura de redes de água e esgoto, e entre mais afastado da centralidade é mais difícil conseguir boas conexões. Na Zona Sul do Rio este fenômeno é evidente. Por exemplo, os bairros Lagoa e Barra de Tijuca, conhecidas áreas nobres da cidade, extensas e localizadas a distancia do Centro, são caracterizadas por não ter boa cobertura. Caso contrario acontece com bairros de baixa renda, tais como Maré e o Complexo do Alemão, localizados na Zona Norte e pertos do centro que apresentam boas conexões de água.

    As melhorias no acesso aos serviços de água e esgoto nos bairros carentes da cidade podem ser atribuídas aos programas públicos de melhoria de bairros, como Favela Bairro, que tem quase 20 anos, e sua extensão mais recente Morar Carioca. Estes programas têm como principal objetivo melhorar as condições de vida dos moradores dos bairros mais pobres da cidade e na realidade tem expandido bastante os serviços urbanos básicos. Alguns deles como Cidade de Deus têm sido beneficiados com importantes investimentos e atualmente apresentam boa cobertura de água e esgoto. Outros bairros como Rocinha, também tem recebido amplio investimento mais ainda reporta ter baixa cobertura de agua e esgoto principalmente pela sua topografia e sua alta densidade populacional que dificultam beneficiar a todos seus moradores.

    A falta de um bom serviço de esgoto em lugares como Rocinha, não só tem prejudicado a seus moradores, mais também a todos os usuários das praias da zona, tais como São Conrado, uma praia maravilhosa que recebe o esgoto sem tratamento da Rocinha. É preciso ação imediata para evitar complicações de saúde dos usuários e maior polução da praia e do oceano.

    Neste tema, o maior desafio da cidade é continuar a expansão dos programas de urbanização de bairros de baixa renda para melhorar a cobertura das redes de água e esgoto na cidade principalmente nas áreas mais carentes das Zonas Sul e Oeste. Muitas destas zonas são áreas de expansão da cidade que atualmente recebem grandes projetos relacionados aos próximos eventos esportivos. Maior investimento de serviços urbanos básicos nas áreas afetadas ajudará para que no futuro a cidade consiga a universalização de agua e esgoto.

    Catalina Gomez, Rio de Janeiro Community Manager

    Rio de Janeiro has fairly good water service coverage, with only 1,5 percent of the city’s 32,908 households lacking proper service. The city has also made important improvements regarding sewer coverage in the past decade. According to Rio Como Vamos, in 2000 21 percent of the city’s households didn’t have sewer services, while ten years later, only five percent did not.

    When looking at the map of covered areas, it is interesting to note that the best water and sewerage coverage isn’t necessarily found in the better-off areas, but in the neighborhoods closest to the city center. The center benefits from the best service provision, and the further away a neighborhood is from the center, the worse its service provision is. This is particularly evident in Rio’s southern area. Lagoa and Barra de Tijuca for example, are two upscale neighborhoods in the south of Rio far from the city center. These areas have worse water services than low-income neighborhoods such like Mare and Complexo do Alemão, which are located in Rio’s northern area, close to the city center.

    The fact that many low-income neighborhoods have good access to water and sewerage services can be attributed to public urban upgrading programs such as Favela Bairro, which has been existed for close to 20 years, and the recently launched Morar Carioca. These programs aim at improving the living conditions of the city’s poorest and have been quite effective in expanding basic urban services, including water and sewerage systems. Investments in some neighborhoods, like the well-known City of God (Cidade de Deus), have successfully resulted in good service coverage. However, investments in some other neighborhoods, like Rocinha, have been less successful in providing water and sewerage coverage, because of the area’s hilly topography and high population density.

    The lack of sewerage service in places like Rocinha affects not only the residents of this neighborhood, but also the visitors of nearby beaches, which receive part of the off running sewage. Beautiful beaches like São Conrado are therefore extremely affected by the lack of adequate sewage treatment and disposal, needing immediate action to avoid greater ocean contamination.

    The city’s main challenge is therefore to expand its water and sewerage services through urban upgrading programs in low-income neighborhoods, mostly in Rio’s southern and western areas. Some of these zones are also the city’s main expansion areas, where several constructions related to the upcoming mega events are taking place. Greater investment in basic urban services is necessary to achieve universal access to water and sewerage service in upcoming years.

  • URBim | for just and inclusive cities

    Africa’s slums are growing at twice the rate of its cities. By some accounts, sub-Saharan Africa will have upwards of 332 million slum dwellers by 2015. While millions of dollars have been spent improving the conditions in Africa’s urban informal settlements and the lives of the people who live therein, overall these efforts have amounted to little more than a drop in the ocean. Join our six panelists to explore the options for stemming the growth of these sprawling settlements and improving conditions in those slums that already exist: Irene Karanja of Muungano Support Trust (SDI) (Kenya); Claudio Torres of the UN-HABITAT Participatory Slum Upgrading Unit (PSUP) (Kenya); architect, urban planner, and World Bank Municipal Development Program consultant Sara Candiracci (Mozambique); Aditya Kumar of the Community Organization Resource Centre (CORC) (SDI) (South Africa); Jhono Bennett of the University of Johannesburg (South Africa); and Marie Huchzermeyer of the University of the Witwatersrand (South Africa).

    Click on the pictures of the panelists to see each panelist’s perspective below.

    Executive Director of Muungano Support Trust, a secretariat of the Shack/Slum Dwellers International Federation (SDI) (Kenya)

    Over the last 25 years, slum dwellers from cities in Africa have successfully mobilized into collections of Federations of the Urban Poor.

    These federations have collected their own financial resources in the form of savings and data pools, creating citywide profiles and extensive slum censuses. Unknown to the world, slum federations have managed to produce a large volume of documented knowledge about themselves that has transformed how the government delivers important services to its poor citizens and how financial instruments can be innovated by financial institutions to serve the needs of the poor.

    Using data collected from the profiles and censuses, Muungano Support Trust, a local NGO working with the federation of Kenya, has provided advisory services to the Government of Kenya and the World Bank, in order to help them intervene and provide housing solutions to over 10,000 families in the Kibera and Mukuru areas of Nairobi.

    The trust has also worked with university planning schools from the local and international academia community to influence how transforming planning discourse can untrap informal human settlements from the snares of historically rigid city planning standards.

    The private sector has grand opportunities to turn urban poor communities into important players within the city. Financial resources from the poor are beginning to challenge and put pressure on the private sector to innovate solutions. Federations have interventions that are facilitating this to happen.

    Data collected by communities with the support and technical capacity of organizations such as Muungano Support Trust, shows that there is a missing link that government interventions are not able to fill and development assistance is failing to cover.

    Insecurity of tenure remains one of the biggest challenges to improving the lives of slum dwellers in Nairobi. The government needs to release land for human settlement, whether it be public, private, or contested. If this does not happen, development aid will continue to subsidize the costs required for technical services to innovate various kinds of solutions for what are essentially locked scenarios!

    Irene Karanja is the founding Executive Director of Muungano Support Trust (MuST), a secretariat of the Slum/Shack Dwellers Federation in Kenya. She is a specialist in participatory research, community organizing and capacity building for the urban poor. For over six years, she has transformed the use of participatory techniques for data collection into a major instrument for planning the upgrading of slums. She has organized a strong constituency of slum dwellers to assume leadership of these settlements through savings groups, housing cooperatives and women’s associations.

    Architect, UN-HABITAT Participatory Slum Upgrading Programme (PSUP) (Kenya)

    African countries represent the majority of the least developed countries (LCD). Taking into account the fact that in most of these countries, the urban population growth is expanding at a faster pace than the national one, it is important to make three considerations in answering the question: “What will it take to make slum upgrading work in African urban centres?”

    Governments should be prepared to ‘give away’. National and local governments should weigh out the costs and risks of perpetuating the status quo and should fulfill the right of adequate housing for all at a pace that copes with the increase in poor urban households. They should prioritise, for example, the free provision of land for the urban poor, in the understanding that there will be no real estate profit and that no particular individual will benefit — a challenging task in a context where African post-independence elites have generally improved their own lives with little regard to equity and social justice.

    Strategies for the provision of adequate housing for the urban poor should go beyond market logic. In trying to come up with housing strategies that appeal to investors, the focus has shifted from the upgrading of the slum dwellers’ living conditions to the beautification of particularly degraded areas. This unchaining of a series of transaction costs results in a gentrification process that relocates the problem without giving it a solution. Slum upgrading strategies should strictly be conceived through a human rights approach.

    Adequate housing strategies should trigger self-relief dynamics in overcoming poverty. The problem of urban poverty is too big to miss the opportunity to engage concerned communities in devising its solution. The Latin-American slum upgrading experience has demonstrated that giving the right initial impulse to poor urban communities actually encourages a progressive and proactive self-upgrading attitude in slum residents, reducing the need for government funds to improve the living conditions of the urban poor. A strong involvement of the community can also help to reduce the risk of benefiting the wrong people, a common shortfall in superficially planned slum upgrading interventions.

    Claudio Torres is an architect with 10 years experience in the field of slum upgrading and housing in an African context. His work has taken him from the slums of Nairobi to settlements in Somaliland and South Sudan where he has worked as an architect, monitoring and evaluation expert, project manager, and construction expert. Torres has worked extensively in Nairobi’s Mathare valley slum with the Italian NGO COOPI, helping to set up an office in the field from which he coordinated a series of different programs. He is currently a consultant for the Participatory Slum Upgrading Program (PSUP), a division of UN-Habitat.

    Architect, Urban Planner and Consultant, World Bank Municipal Development Program (Mozambique)

    Urbanization in Africa is growing and national governments and local authorities are faced with the challenge of guiding cities’ growth while dealing with other constraints, including limited financial resources; weak institutional, management, and technical capacities; lack of proper urban policies and financial mechanisms to mobilize and regulate investments.

    To strengthen the ability of African cities to generate wealth, prosperity, and economic and human development, national governments and local authorities need to define a clear vision for the future of their cities and their informal settlements.

    Cities must be seen and treated as complex organisms whose elements are interconnected. Informal settlements should be seen as an integral part of this organism, and not as a “sick body” to be fought. They constitute a precious resource for the city and its population and must be included in the urban grid.

    Each and every stakeholder, whether it be the national government, local authorities, civil society, the community, the private sector, or the donor community, have a role to play and must be partners in the development and implementation of this vision for the city. In particular, the active participation of the local community is essential in finding lasting solutions, and to guarantee ownership and sustainability, social cohesion, and integration.

    The implementation of comprehensive and integrated improvement plans in informal areas would be ideal; however, it takes a long time and requires considerable financial resources. Considering the constraints in local financial and institutional capabilities, it is preferable to adopt an incremental approach, whereby small-scale interventions are first envisioned and planned in an extensive development plan, and then are carried out gradually through community participation.

    Priority must be given to the improvement and provision of infrastructure, basic services, accessibility, safety, and the creation of economic opportunities. Concurrently, special attention should be given to outdoor public spaces, where a vital part of the community’s social, cultural, and economic activities is conducted. Improving these spaces would improve the framework of daily life and bring dignity, beauty, and utility to informal and poor areas with minimal resources.

    Sara Candiracci is an architect and urban planner with 10 years experience in the design, management, and implementation of several urban planning and slum upgrading projects in Latin America and Africa with different organizations including UN-Habitat, the Inter-American Development Bank, and various NGOs. She is now working at the Municipality of Maputo, Mozambique, as Urban Planning Advisor for the World Bank Municipal Development Program. She is also conducting her PhD research on the potential use of urban cultural heritage in urban regeneration and planning, considering Maputo as case of study.

    Deputy Director, Community Organisation Resource Centre (CORC), an affiliate of Shack/Slum Dwellers International (South Africa)

    Over the last 20 years, the South African government has been hailed as having the most progressive housing and poverty policy environments in the continent. Besides making welfare grants available to previously marginalized communities, it has made provisions to provide housing to any citizen earning under R3,500 ($350)/month.

    Although more than 2.3 million subsidized homes have been built across the country, the impacts of the housing policy have fallen short. Informal settlements have gone up by 900 percent (from 300 to 2,700) while there are an estimated 2.1 million people on the waiting list for state-subsidized housing.

    Realizing the constraints of the housing program, the State has rapidly shifted its emphasis to informal settlement upgrading. New regulatory frameworks like Outcome 8 have been developed to allow for provision of basic services and tenure rights.

    While the aims of Outcome 8 and its aligned policies have been well defined, in my view there are still gaps in addressing the bigger issues. Firstly, how incremental informal settlement upgrading is implemented must be defined: are we trying to address tenure rights or basic services, land or housing, dependency on the state or self-reliance through livelihoods? Secondly, there is the manner in which informal settlement upgrading is being rolled out. Currently it doesn’t account for strong community, civil society, and NGO participation, nor does it address the broader issue of project finance, outsourcing, and party politics.

    The process of upgrading is about learning and letting go, about making space for communities to innovate with the state, about creating a city-wide network/movement that can change the spatial patterns of the city and strengthen citizenship.

    Aditya Kumar is the technical coordinator and deputy director for the Community Organization Resource Centre (CORC), affiliated to Shack/Slum Dwellers International, currently working with informal settlement and backyarder dwellers of South Africa. His previous experience has included post-war reconstruction of Palestinian refugee camps (Lebanon), post-earthquake disaster housing reconstruction (India), affordable and social housing and large urban development projects (Los Angeles and Boston). His work has fostered multi-stakeholder partnerships between local communities, CBOs, government bodies, academic institutions, and International NGOs, with a key focus on strengthening community-driven design, planning, and implementation. The reconstruction of Palestinian refugee camps has also been shortlisted for the Aga Khan Award for Architecture.

    Architect and Lecturer and Researcher, University of Johannesburg

    The National Development Plan’s Outcome 8 agreement is behind the South African government’s current shift towards in situ housing upgrading as a means of redevelopment. This goal of upgrading 400,000 informal settlements has been developed under the mandate of the National Upgrade Support Program.

    Large-scale construction consortiums are working alongside the government, in collaboration with various planning, architectural, and non-governmental entities on the current Reconstruction & Development Program.

    While these initiatives are creating an institutional framework to begin addressing the needs of informal settlement residents in South Africa, there is little focus across the board on training effective practitioners who can play crucial intermediary roles not only in informal settlement upgrading but also in the nation’s spatial redevelopment.

    From my experience in this field, it seems that there are a disproportionately small number of practitioners who have the understanding, experience, or empathy required to engage with the dynamics of informal settlement communities and the complexity of working within the social, economic, and political intricacy that exists between grassroots entities and government structures.

    A major factor for this condition is related to the lack of opportunities for spatial design practitioners (engineers, architects, planners, etc), to be exposed to these complex environments. As a result, many ‘professionals’, as well as many government officials, often display dangerously simplistic views on how to ‘fix’ the problems at hand.

    From my work and experience in academia and the NGO sector, I believe that empathetic spatial design practitioners hold the key position to engage effectively at the ‘community’ level while addressing the larger spatial inequalities of post-apartheid South Africa.

    My aim lies in understanding and sharing contextually appropriate training, practice, and precedents through critical engagement with South Africa’s residents of poor and unsafe living conditions in order to further develop this ‘additional role’ for socio-technical spatial design practice.

    Jhono Bennett is an architect who works at the University of Johannesburg as a part-time lecturer and Independent researcher, while managing the operations of 1:1 — Agency of Engagement, a non-profit entity which he co-founded to provide a design-based collaborative service between grassroots organizations, professionals, academia, and government.

    Masters Program in Housing at the School of Architecture and Planning at the University of the Witwatersrand (South Africa)

    Internationally, there has been unprecedented focus on ‘slums’ in the new millennium. In southern African cities, informal settlements are certainly a concern, although in Anglophone countries the legacy of British colonial planning has to some extent kept these settlements out of middle-class sight. Where informal settlements have intruded into visible locations, as for instance in Lusophone Luanda, recent efforts have been made to remove these to the city periphery. In South Africa, a somewhat reverse government discourse targeted ‘visible’ informal settlements for ‘in situ upgrading’. This approach was adopted by the high profile N2 Gateway Project in Cape Town, which originally targeted all informal settlements that lined the motorway from the airport to the historical city centre for upgrading. In the years that followed, this project morphed into the Luandan approach — the removal of visible informal settlements. In the Cape Town case, removal was to a controlled decanting camp on the far side of the airport. Yet the public was told that the commitment remained to ‘in situ upgrading’. The term was simply given a new meaning, namely for the state to demolish and then build new housing to modern standard for a different clientele.

    With this juxtaposition of informal settlement treatment in Angola and South Africa, I’d like to provoke debate on the core meaning of ‘informal settlement upgrading’ as well as the political uses associated to the meaning. For me, the essence of in situ upgrading is the recognition of two important points. One is that the unevenly developing economies in southern Africa, in the absence of radical change, will not facilitate the replacement of all informal settlements with planned and fully serviced residential developments for the households currently in these settlements. This recognition prevents ‘wishing away’ the reality of urban informality. The other is that informal settlements result out of determination, initiative (often collective), creativity, and complex decisions by poor households. These must be respected and supported where possible.

    Marie Huchzermeyer convenes and teaches in the masters programme in Housing at the School of Architecture and Planning at the University of the Witwatersrand. This base has allowed her to provide support to rights-based struggles from within informal settlement for ‘real’ in situ upgrading. Her recent work includes a 2011 book “Cities With ‘Slums’: From Informal Settlement Eradication to a Right to the City in Africa,” and a comparison with Brazil in a 2004 book, “Unlawful Occupation: Informal Settlements and Urban Policy in South Africa and Brazil.”

  • URBim | for just and inclusive cities

    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.

    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

  • URBim | for just and inclusive cities

    Africa’s slums are growing at twice the rate of its cities. By some accounts, sub-Saharan Africa will have upwards of 332 million slum dwellers by 2015. While millions of dollars have been spent improving the conditions in Africa’s urban informal settlements and the lives of the people who live therein, overall these efforts have amounted to little more than a drop in the ocean. Join our six panelists to explore the options for stemming the growth of these sprawling settlements and improving conditions in those slums that already exist: Irene Karanja of Muungano Support Trust (SDI) (Kenya); Claudio Torres of the UN-HABITAT Participatory Slum Upgrading Unit (PSUP) (Kenya); architect, urban planner, and World Bank Municipal Development Program consultant Sara Candiracci (Mozambique); Aditya Kumar of the Community Organization Resource Centre (CORC) (SDI) (South Africa); Jhono Bennett of the University of Johannesburg (South Africa); and Marie Huchzermeyer of the University of the Witwatersrand (South Africa).

    Click on the pictures of the panelists to see each panelist’s perspective below.

    Executive Director of Muungano Support Trust, a secretariat of the Shack/Slum Dwellers International Federation (SDI) (Kenya)

    Over the last 25 years, slum dwellers from cities in Africa have successfully mobilized into collections of Federations of the Urban Poor.

    These federations have collected their own financial resources in the form of savings and data pools, creating citywide profiles and extensive slum censuses. Unknown to the world, slum federations have managed to produce a large volume of documented knowledge about themselves that has transformed how the government delivers important services to its poor citizens and how financial instruments can be innovated by financial institutions to serve the needs of the poor.

    Using data collected from the profiles and censuses, Muungano Support Trust, a local NGO working with the federation of Kenya, has provided advisory services to the Government of Kenya and the World Bank, in order to help them intervene and provide housing solutions to over 10,000 families in the Kibera and Mukuru areas of Nairobi.

    The trust has also worked with university planning schools from the local and international academia community to influence how transforming planning discourse can untrap informal human settlements from the snares of historically rigid city planning standards.

    The private sector has grand opportunities to turn urban poor communities into important players within the city. Financial resources from the poor are beginning to challenge and put pressure on the private sector to innovate solutions. Federations have interventions that are facilitating this to happen.

    Data collected by communities with the support and technical capacity of organizations such as Muungano Support Trust, shows that there is a missing link that government interventions are not able to fill and development assistance is failing to cover.

    Insecurity of tenure remains one of the biggest challenges to improving the lives of slum dwellers in Nairobi. The government needs to release land for human settlement, whether it be public, private, or contested. If this does not happen, development aid will continue to subsidize the costs required for technical services to innovate various kinds of solutions for what are essentially locked scenarios!

    Irene Karanja is the founding Executive Director of Muungano Support Trust (MuST), a secretariat of the Slum/Shack Dwellers Federation in Kenya. She is a specialist in participatory research, community organizing and capacity building for the urban poor. For over six years, she has transformed the use of participatory techniques for data collection into a major instrument for planning the upgrading of slums. She has organized a strong constituency of slum dwellers to assume leadership of these settlements through savings groups, housing cooperatives and women’s associations.

    Architect, UN-HABITAT Participatory Slum Upgrading Programme (PSUP) (Kenya)

    African countries represent the majority of the least developed countries (LCD). Taking into account the fact that in most of these countries, the urban population growth is expanding at a faster pace than the national one, it is important to make three considerations in answering the question: “What will it take to make slum upgrading work in African urban centres?”

    Governments should be prepared to ‘give away’. National and local governments should weigh out the costs and risks of perpetuating the status quo and should fulfill the right of adequate housing for all at a pace that copes with the increase in poor urban households. They should prioritise, for example, the free provision of land for the urban poor, in the understanding that there will be no real estate profit and that no particular individual will benefit — a challenging task in a context where African post-independence elites have generally improved their own lives with little regard to equity and social justice.

    Strategies for the provision of adequate housing for the urban poor should go beyond market logic. In trying to come up with housing strategies that appeal to investors, the focus has shifted from the upgrading of the slum dwellers’ living conditions to the beautification of particularly degraded areas. This unchaining of a series of transaction costs results in a gentrification process that relocates the problem without giving it a solution. Slum upgrading strategies should strictly be conceived through a human rights approach.

    Adequate housing strategies should trigger self-relief dynamics in overcoming poverty. The problem of urban poverty is too big to miss the opportunity to engage concerned communities in devising its solution. The Latin-American slum upgrading experience has demonstrated that giving the right initial impulse to poor urban communities actually encourages a progressive and proactive self-upgrading attitude in slum residents, reducing the need for government funds to improve the living conditions of the urban poor. A strong involvement of the community can also help to reduce the risk of benefiting the wrong people, a common shortfall in superficially planned slum upgrading interventions.

    Claudio Torres is an architect with 10 years experience in the field of slum upgrading and housing in an African context. His work has taken him from the slums of Nairobi to settlements in Somaliland and South Sudan where he has worked as an architect, monitoring and evaluation expert, project manager, and construction expert. Torres has worked extensively in Nairobi’s Mathare valley slum with the Italian NGO COOPI, helping to set up an office in the field from which he coordinated a series of different programs. He is currently a consultant for the Participatory Slum Upgrading Program (PSUP), a division of UN-Habitat.

    Architect, Urban Planner and Consultant, World Bank Municipal Development Program (Mozambique)

    Urbanization in Africa is growing and national governments and local authorities are faced with the challenge of guiding cities’ growth while dealing with other constraints, including limited financial resources; weak institutional, management, and technical capacities; lack of proper urban policies and financial mechanisms to mobilize and regulate investments.

    To strengthen the ability of African cities to generate wealth, prosperity, and economic and human development, national governments and local authorities need to define a clear vision for the future of their cities and their informal settlements.

    Cities must be seen and treated as complex organisms whose elements are interconnected. Informal settlements should be seen as an integral part of this organism, and not as a “sick body” to be fought. They constitute a precious resource for the city and its population and must be included in the urban grid.

    Each and every stakeholder, whether it be the national government, local authorities, civil society, the community, the private sector, or the donor community, have a role to play and must be partners in the development and implementation of this vision for the city. In particular, the active participation of the local community is essential in finding lasting solutions, and to guarantee ownership and sustainability, social cohesion, and integration.

    The implementation of comprehensive and integrated improvement plans in informal areas would be ideal; however, it takes a long time and requires considerable financial resources. Considering the constraints in local financial and institutional capabilities, it is preferable to adopt an incremental approach, whereby small-scale interventions are first envisioned and planned in an extensive development plan, and then are carried out gradually through community participation.

    Priority must be given to the improvement and provision of infrastructure, basic services, accessibility, safety, and the creation of economic opportunities. Concurrently, special attention should be given to outdoor public spaces, where a vital part of the community’s social, cultural, and economic activities is conducted. Improving these spaces would improve the framework of daily life and bring dignity, beauty, and utility to informal and poor areas with minimal resources.

    Sara Candiracci is an architect and urban planner with 10 years experience in the design, management, and implementation of several urban planning and slum upgrading projects in Latin America and Africa with different organizations including UN-Habitat, the Inter-American Development Bank, and various NGOs. She is now working at the Municipality of Maputo, Mozambique, as Urban Planning Advisor for the World Bank Municipal Development Program. She is also conducting her PhD research on the potential use of urban cultural heritage in urban regeneration and planning, considering Maputo as case of study.

    Deputy Director, Community Organisation Resource Centre (CORC), an affiliate of Shack/Slum Dwellers International (South Africa)

    Over the last 20 years, the South African government has been hailed as having the most progressive housing and poverty policy environments in the continent. Besides making welfare grants available to previously marginalized communities, it has made provisions to provide housing to any citizen earning under R3,500 ($350)/month.

    Although more than 2.3 million subsidized homes have been built across the country, the impacts of the housing policy have fallen short. Informal settlements have gone up by 900 percent (from 300 to 2,700) while there are an estimated 2.1 million people on the waiting list for state-subsidized housing.

    Realizing the constraints of the housing program, the State has rapidly shifted its emphasis to informal settlement upgrading. New regulatory frameworks like Outcome 8 have been developed to allow for provision of basic services and tenure rights.

    While the aims of Outcome 8 and its aligned policies have been well defined, in my view there are still gaps in addressing the bigger issues. Firstly, how incremental informal settlement upgrading is implemented must be defined: are we trying to address tenure rights or basic services, land or housing, dependency on the state or self-reliance through livelihoods? Secondly, there is the manner in which informal settlement upgrading is being rolled out. Currently it doesn’t account for strong community, civil society, and NGO participation, nor does it address the broader issue of project finance, outsourcing, and party politics.

    The process of upgrading is about learning and letting go, about making space for communities to innovate with the state, about creating a city-wide network/movement that can change the spatial patterns of the city and strengthen citizenship.

    Aditya Kumar is the technical coordinator and deputy director for the Community Organization Resource Centre (CORC), affiliated to Shack/Slum Dwellers International, currently working with informal settlement and backyarder dwellers of South Africa. His previous experience has included post-war reconstruction of Palestinian refugee camps (Lebanon), post-earthquake disaster housing reconstruction (India), affordable and social housing and large urban development projects (Los Angeles and Boston). His work has fostered multi-stakeholder partnerships between local communities, CBOs, government bodies, academic institutions, and International NGOs, with a key focus on strengthening community-driven design, planning, and implementation. The reconstruction of Palestinian refugee camps has also been shortlisted for the Aga Khan Award for Architecture.

    Architect and Lecturer and Researcher, University of Johannesburg

    The National Development Plan’s Outcome 8 agreement is behind the South African government’s current shift towards in situ housing upgrading as a means of redevelopment. This goal of upgrading 400,000 informal settlements has been developed under the mandate of the National Upgrade Support Program.

    Large-scale construction consortiums are working alongside the government, in collaboration with various planning, architectural, and non-governmental entities on the current Reconstruction & Development Program.

    While these initiatives are creating an institutional framework to begin addressing the needs of informal settlement residents in South Africa, there is little focus across the board on training effective practitioners who can play crucial intermediary roles not only in informal settlement upgrading but also in the nation’s spatial redevelopment.

    From my experience in this field, it seems that there are a disproportionately small number of practitioners who have the understanding, experience, or empathy required to engage with the dynamics of informal settlement communities and the complexity of working within the social, economic, and political intricacy that exists between grassroots entities and government structures.

    A major factor for this condition is related to the lack of opportunities for spatial design practitioners (engineers, architects, planners, etc), to be exposed to these complex environments. As a result, many ‘professionals’, as well as many government officials, often display dangerously simplistic views on how to ‘fix’ the problems at hand.

    From my work and experience in academia and the NGO sector, I believe that empathetic spatial design practitioners hold the key position to engage effectively at the ‘community’ level while addressing the larger spatial inequalities of post-apartheid South Africa.

    My aim lies in understanding and sharing contextually appropriate training, practice, and precedents through critical engagement with South Africa’s residents of poor and unsafe living conditions in order to further develop this ‘additional role’ for socio-technical spatial design practice.

    Jhono Bennett is an architect who works at the University of Johannesburg as a part-time lecturer and Independent researcher, while managing the operations of 1:1 — Agency of Engagement, a non-profit entity which he co-founded to provide a design-based collaborative service between grassroots organizations, professionals, academia, and government.

    Masters Program in Housing at the School of Architecture and Planning at the University of the Witwatersrand (South Africa)

    Internationally, there has been unprecedented focus on ‘slums’ in the new millennium. In southern African cities, informal settlements are certainly a concern, although in Anglophone countries the legacy of British colonial planning has to some extent kept these settlements out of middle-class sight. Where informal settlements have intruded into visible locations, as for instance in Lusophone Luanda, recent efforts have been made to remove these to the city periphery. In South Africa, a somewhat reverse government discourse targeted ‘visible’ informal settlements for ‘in situ upgrading’. This approach was adopted by the high profile N2 Gateway Project in Cape Town, which originally targeted all informal settlements that lined the motorway from the airport to the historical city centre for upgrading. In the years that followed, this project morphed into the Luandan approach — the removal of visible informal settlements. In the Cape Town case, removal was to a controlled decanting camp on the far side of the airport. Yet the public was told that the commitment remained to ‘in situ upgrading’. The term was simply given a new meaning, namely for the state to demolish and then build new housing to modern standard for a different clientele.

    With this juxtaposition of informal settlement treatment in Angola and South Africa, I’d like to provoke debate on the core meaning of ‘informal settlement upgrading’ as well as the political uses associated to the meaning. For me, the essence of in situ upgrading is the recognition of two important points. One is that the unevenly developing economies in southern Africa, in the absence of radical change, will not facilitate the replacement of all informal settlements with planned and fully serviced residential developments for the households currently in these settlements. This recognition prevents ‘wishing away’ the reality of urban informality. The other is that informal settlements result out of determination, initiative (often collective), creativity, and complex decisions by poor households. These must be respected and supported where possible.

    Marie Huchzermeyer convenes and teaches in the masters programme in Housing at the School of Architecture and Planning at the University of the Witwatersrand. This base has allowed her to provide support to rights-based struggles from within informal settlement for ‘real’ in situ upgrading. Her recent work includes a 2011 book “Cities With ‘Slums’: From Informal Settlement Eradication to a Right to the City in Africa,” and a comparison with Brazil in a 2004 book, “Unlawful Occupation: Informal Settlements and Urban Policy in South Africa and Brazil.”

  • URBim | for just and inclusive cities

    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.

    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

  • URBim | for just and inclusive cities

    Catalina Gomez, Coordenadora da Rede em São Paulo

    O Estado Nutricional dos residentes de São Paulo foi desenvolvido em 2010 pela Prefeitura para conhecer o estado nutricional da população e orientar as politicas públicas na matéria. Segundo o relatório, a prevalência de adultos com sobrepeso foi de 34 por cento e de obesidade 13 por cento. Este último dado representa mais de 800 mil pessoas obesas na cidade. Os mais afetados são homes casado maiores de 50 anos. O relatório não achou nenhuma relação direita entre nível socioeconômico e o sobrepeso; com referência à obesidade achou que ela é sofrida um pouco mais pelos cidadãos de menores ingressos, mais a diferencia não foi considerável.

    O relatório também destaca que em torno de 56 por cento da população apresenta insatisfação com o peso atual, sendo que a metade dos pesquisados responderam “não fazer nada para emagrecer”, por em quanto 24 por cento respondeu fazer exercícios e outro 24 por cento cuida da alimentação.

    Aquelas informações do Estado Nutricional somadas às pesquisas recentes que tem achado um aumento do sobrepeso entre crianças e adolescentes em São Paulo, evidenciam a urgência de desenvolver intervenções que promovam uma alimentação adequada e hábitos saudáveis, incluído o aumento dos exercícios físicos.

    Atualmente a Secretaria Municipal de saúde lidera vários esforços na melhora da nutrição além da casa, envolvendo as escolas e lugares de trabalho. Para atender as crianças e jovens, a Secretaria tem uma parceria com a Secretaria de Educação para garantir alimentação adequada nas escolas públicas. Como algumas escolas terceirizam os serviços, as secretarias desenvolveram guias para os fornecedores de serviços consigam garantir menus adequados e balanceados. Para aquelas escolas que tem cozinhas, elas tem apoio regular de nutricionistas que ajudam na construção dos menus e supervisam a qualidade dos alimentos y sua variedade. Em quanto aos exercícios físicos, as escolas agora oferecem mais de uma aula de educação física e promovem atividades físicas depois do horário escolar para garantir envolver as crianças e suas famílias na pratica de esportes e de atividade física periódica.

    Para melhorar o estado nutricional das pessoas que trabalham e não conseguem se alimentar em casa, a Secretaria de Saúde achou que embora existam opções de alimentação saudável, muitas vezes os mesmos clientes fazem decisões pouco saudáveis. O melhor exemplo é o consumo excessivo do sal, que tem se relacionado com enfermidades cardiovasculares. Para responder a esta situação a Secretaria desenvolveu uma serie de materiais didáticos e lançou uma campanha de “consume consente do sal”, que tem contribuído na mudança para o consumo de menores porções do sal.

    Outro mecanismo para melhorar a nutrição na cidade, são os concursos de culinária saudável que organiza a Secretaria de Saúde. Alguns dos concursos atraem públicos bem diferenciados; um dos concursos que merece destaque foi aquele de culinária hospitalar que conseguiu uma participação massiva e culminou numa publicação de receitas inovadoras. A publicação tem sido adotada por vários centros públicos de saúde e tem incentivado a outros a criar suas próprias receitas saudáveis.

    Foto: Secretaria Municipal de Saúde

    Catalina Gomez, São Paulo Community Manager

    The São Paulo Nutritional Status Report was developed in 2010 by the local government to learn about the status of nutrition and health among its residents and to inform adequate policy-making in this field. The report found that 32 percent of adults are overweight, and 13 percent are obese, meaning that there are 800,000 obese people living in São Paulo. Married men 50 years and older are most affected. Interestingly, the report found no significant relationship between income and being overweight. In the case of obesity, lower-income and less-educated populations showed slightly higher numbers than the better-off group, but the differences were not drastic.

    The report also found that around 56 per cent of the city’s residents are unhappy with their current weight. More concerning is that half of these respondents mentioned that they “don’t do anything to actively lose weight,” while 24 percent exercise and another 24 percent watch their diet.

    The findings of the Nutritional Status Report, along with more recent research, show that growing numbers of São Paulo’s children and teenagers are overweight. These numbers evidence the urgent need to develop better interventions that teach city residents about adequate nutrition and healthier lifestyles, including more frequent exercise.

    The Municipal Secretariat of Health has been leading various efforts to support the shift towards better nutrition and healthier lifestyles beyond the household, including in schools and workplaces. To target the young population, the Secretariat collaborates with the Secretariat of Education to improve the quality of food that is provided at each municipal school. Since many schools outsource food preparation, both Secretariats have issued guidelines for service providers to ensure food quality and balanced menus. Schools that have cooking facilities in-house receive regular visits from nutritionists that help plan menus and ensure both quality and variety of the meals. Exercising in public schools has grown from involving just a physical education class to more after-school activities that involve sports and physical activities with friends and family.

    When it comes to adults, the Health Secretariat realized that although many restaurants offer balanced diets, residents were making unhealthy choices like consuming excessive salt, which has been associated with cardiovascular disease. The Secretariat therefore developed a series of didactic materials and launched a massive campaign to raise awareness about “consuming salt consciously.” Although people still continue to eat salt, the campaign has been positively accepted and has contributed to a decrease in consumption.

    Another effort to promote better nutrition is the healthy recipes contests organized by the Health Secretariat. This project aims to encourage residents to share their ideas and explore the possibilities of healthy cooking. Some of the contests attract specific target audiences. One worth highlighting was the contest on healthy cooking for hospitals, which promoted balanced meals offered to patients while in treatment at public hospitals. The contest collected so many contributions that it ended up in a publication of recipes that has been adopted by various facilities and has encouraged others to develop their own healthy recipes.

    Photo credit: Municipal Secretariat of Health