The innovative Saving for Change program is based on the mobilization of savings in small (20 to 25 members) groups. This approach differs from credit-based microfinance in that group members put their own money—sometimes as little as 25 cents a week—into a savings pool which is then loaned out to group members to cover emergency expenses or to start a small business. Saving for Change is now helping half a million people (primarily women, and a few men in Cambodia) with a safe and convenient place to save money, and as a source of small loans.
“This is a population that has been scarcely touched by microfinance institutions and banks,” says Jeff Ashe, the director of Oxfam America’s Community Finance program. Ashe helped introduce the Saving for Change model to Oxfam America in 2005 after carrying out an evaluation of similar programs in Nepal, India, and Zimbabwe.
With support from a grant from the Bill & Melinda Gates Foundation, Oxfam is studying participation in Saving for Change and how this program is helping people provide some financial stability and improve their lives. Early results from studies in Mali are showing that participation in a Saving for Change group provides a valuable buffer against shock – if a household member gets sick, money is available to cover medical costs that might otherwise tip a very poor family into destitution.
“Knowing that their family can fall back on a loan from Saving for Change to deal with an emergency helps reduce stress,” says Janina Matuszeski, research coordinator for Oxfam America’s Community Finance Program. She says that this financial confidence “helps a woman get her head up and say, ‘what’s next?’ and take some control over her financial future.”
Saving for Change is currently operating in Mali, Senegal, El Salvador, Guatemala, and Cambodia. In total, the members in these groups are currently saving more than $9 million. The money these groups save (plus the interest on loans) is distributed to the group members every year when they need it the most, usually just before the harvest when families need food and have back-to-school expenses.
“Saving for Change groups are now starting to be used as platforms to introduce ecological agriculture and business and leadership training,” Ashe says. “We also want to build on initiatives that the women have taken on themselves such as the formation of girls groups and the purchase of grain to tide the members over the ‘hungry season.’”
Saving for Change is continuing to attract members, form new groups, and study the effects of the program on group members. “The objective is to develop a mass-scale and replicable model for building village economies at a modest cost per villager,” says Ashe. “We’ll study the outcomes, and then disseminate this model broadly.”
]]>The film screening was part of an effort led by Oxfam and its partners in Chalatenango to help the women participants in Saving for Change groups to improve their entrepreneurial skills and ability to manage small businesses, as well as small-scale agricultural activities and ability to advocate for better policies to address major economic issues related to agriculture and food.
Other activities during the week included cultural acts, such as theater and folklore dances, organized by the women themselves. This is a remarkable accomplishment. For the first time, women felt empowered enough to organize community activities by themselves and for themselves. It’s an example of how teaching women to save and manage their own funds in a Saving for Change group also builds self-esteem.
The documentary, titled Vamos al Grano, described the food price crisis in 2009. The women in the audience noted that the prices in Latin America have not dropped much since then. “The price of a 20 pound sack of beans has gone up to $30, $35; before, it was $10,” says Juana Morales, one of the participants. “This year [2010-2011] the prices have gone up more than ever.” She explains that the high prices are caused by heavy rainfall, which ruined the crops.
All the women who came to view the film are experiencing similar challenges in providing adequate nutrition to their families. The Saving for Change program is helping women to go beyond saving and small investments to improve their small-scale agricultural production through water management, improving soil through organic fertilizer and other means, and better seed selection. Oxfam’s partners in Chalatenango are training women leaders who are then passing on their knowledge to a wider group of Saving for Change members. Discussing the larger economic issues related to food production and supply will help the women to push for better policies at the local and national level that will help small-scale food producers like them to get the help they need to adequately feed their families, and improve their incomes.
Oxfam is currently funding partner organizations CORDES, CCR, and ADEPROCCA to work with 575 women from Saving for Change groups in Chalatengango to improve their food production capacity, start small businesses, and learn to project their concerns and needs on to local and regional government.
“Saving for Change goes beyond just saving and lending money,” says Milagro Maravilla, Oxfam’s Program Coordinator for Saving for Change in Central America. “It’s a perfect way to start organizing women, and that’s what we’ve been doing alongside the savings activity for three years now. It was inspiring to see how they took the lead in organizing these activities, instead of just participating in events organized by national or local organizations. And now that there is such a force of empowered women, Oxfam is helping them with the necessary skills to take themselves a step ahead economically, and to advocate for their rights.”
]]>With prices going up, she has had a hard time keeping her business running. “When I started, I didn’t have to invest much… But everything is so expensive now and I didn’t know where to get the money. The interest rates at a bank are so high. I couldn’t afford it," she says.
“And then we started this [savings] group. Now I’m happy because I took a loan to buy paraffin. I’m able to make my candles again, and I’m selling again.”
Ten years ago, leaders of 189 countries met at the UN and promised to halve the proportion of people living in extreme poverty by 2015. They agreed to a roadmap setting out eight time-bound and measurable goals for 2015 -- the Millennium Development Goals (MDGs). One of these goals is to promote gender equality and empower women. One measure of progress towards this goal is to look at the number of women working and earning money.
With paying jobs scarce in many poor countries, earning wages is particularly challenging for women. While many would like to start their own businesses, they lack capital and it is hard to find money to borrow. Without credit, they are unable to take advantage of economic opportunities and stay close to home and take care of their children.
Oxfam’s ‘Saving for Change’ program helps women organize themselves and pool their savings to form a small fund. From this fund, the members can take out loans, which they normally use to start small-scale businesses, deal with emergencies, or improve their quality of life. The program serves poor women in rural and semi-urban areas who do not have access to conventional micro-credit institutions. Savings can be as little as $1 a week and loans as small as $25, or less.
Sandra, like Rocío, also lives in Guatemala and recently joined a Saving for Change group. “Before, I had to go elsewhere to get a loan, and that was so difficult. But now we have our savings and can get our loans. And it’s our own money,” she says. Sandra took a 50 quetzales ($6) loan to buy wool for making Guatemalan cloth. She hasn’t sold it yet, but when she does she expects to make 200 quetzales ($25).
These amounts sound small, but they make a substantial difference in the women’s lives. Take Elena Miranda, who now owns a bakery in Chalatenango, El Salvador. “I took a loan to buy a machine to make bread and pastries… at only one percent interest. Within two months I could pay half of it back… With this business, I cover all the daily household expenses,” she explains.
Saving for Change is based on the group members’ own savings. They borrow no external capital. It teaches women how to manage their fund, and within a year the groups are able to continue their activities on their own. By the end of 2010, Saving for Change aims to reach 10,000 people in El Salvador and Guatemala. That is 10,000 empowered women who are one step closer to lifting their families out of poverty.
]]>Amid the clatter of sewing machines and the swish of scissors, those words—“yes we can”-- have been inspiring a team of Salvadoran seamstresses to ignore the naysayers, set aside their fears, and prove that with hard work and a bit of organization they can change their lives.
The women are members of a small workshop in the community of Cantón Los Potrerillos, one of five such workshops scattered across the Department of Chalatenango, El Salvador, that formed recently to take advantage of a sudden opportunity: the need for thousands of school uniforms in a plan announced by the government.
Oxfam and its local partner, the Association for the Entrepreneurial Development of Producers and Traders, known by its Spanish acronym ADEPROCCA, knew just who should be tapped: people hungry for work--sewers from the savings groups established a couple of years before. Oxfam helped initiate the groups through its Saving for Change program. Offering people guidance on how to save small amounts of their own money and make loans to each other, Saving for Change can serve as a launching pad for small businesses and individual independence.
All told, 49 women and one man from Chalatenango answered the government call. Their participation in some of the 360 savings groups in the area prepared them, in part, for the challenges ahead. With the help of Oxfam and ADERPROCCA, the sewers organized themselves into five workshops and bid on the national project, securing work in their communities and neighboring ones.
In just six months, the workshops cranked out 5,000 uniforms.
But it took some daring for the women to imagine themselves as competitive seamstresses, going after projects that demanded careful resource management and the production of large volumes of high-quality goods. One of the first steps was to master their fear.
“They will put you in jail if you ruin the fabric,” warned the naysayers.
“You will get fined,” said others.
“There is not much fabric. There will not be enough.”
Listening to all of that, Orbelina Alberto faced the yardage before her with trepidation. But confidence soon flowed.
“When we started, we were a bit scared to cut the fabric,” she said. “But when we delivered (an order) to the first school, then we realized everything went fine.”
Alberto is one of the seamstresses in the Cantón Los Potrerillos workshop. Its leader is 33-year-old Javier Sosa, the sole man who started with the project and who has been working as a tailor for more than half his life.
Until now, Sosa had never had a chance to work on an order of this size—and the challenges were daunting at times. Being the most experienced in the workshop, Sosa had to guide the others and correct them repeatedly, all of which led, inevitably, to some tension. But gradually, the sewers learned each other’s ways of working and all of them stayed focused on their objective: to meet their deadline and deliver uniforms of high quality.
But Sosa doesn’t deny the pressure he felt.
“We had to make trips to measure them all (the students). It gives you a headache,” he said.
Alberto, it turned out, had a knack for calming everyone’s nerves—and found herself stepping into the role of production organizer and cost controller. And when the group ran out of money for materials—they needed thread and zippers to finish the job—they turned to their local savings group for a loan of $100, which they have since paid back.
“It’s not only people in San Salvador who can do it, we can to,” said Sosa of all that his workshop has accomplished. “We can, too.”
For the sewers, the opportunity to participate in these workshops, to earn a regular income, and to boost their self-esteem has been life-changing.
The name of the workshop to which Maria Hemindia Zelaya belongs says it all: New Hope. Zelaya is a 41-year-old mother who won the bid for manufacturing uniforms at six schools around Caserio Los Alas. Another seamstress in the workshop secured the bid for two more schools and since January, the 10 women in the group have made 542 uniforms and plan to double that number.
Different tasks rotate among members of the group and on average, each woman has been earning between $200 and $250 a month.
For Zelaya, that means she now has the resources to pay for her son to go to college, which costs $45 a month plus $5 in transportation.
“New Hope means that we have today, with this program, the hope of not going back to unemployment,” says Zelaya
And with the income that Élida Cerros is earning, it means her family can stay together. Her husband, who has seasonal employment only, working in a corn field, had been mulling the necessity of emigrating to find more work. Now, the family can stay where their roots are—and that has brought Cerros great peace of mind.
“I’m happy for having a job because I have him (her husband) at home and he helps me with the child,” said Cerros. “He provides the corn and the beans and I am working. We pass it well now.”
Income isn’t all that the women have gained through this initiative. As important is what they have learned about how to stand up for their rights—especially when dealing with the directors of the schools.
Factories in the cities of Chalatenango and San Salvador were also bidding on the uniforms with prices that made it hard for others to compete against. But the seamstresses knew that price wasn’t the only consideration schools had to weigh—locally-based operations and the capacity to produce a high volume of goods were also part of the criteria for a successful bid. And the women made that case—successfully.
“They learned to demand their rights as being members of the community,” says Evelyn Salvo, program coordinator for ADEPROCCA. And today, the seamstresses of Chalatenango are not the same women they were a year ago.
“Now they have a voice,” says Salvo. “Today, each of them has something to say. They have delivered uniforms and got paid for it. They have discovered that they are capable.”
]]>“Before we would use 100 francs to buy tea,” Diallo said after a group meeting at her home, while she was selling a small bag of cooking spices to a young boy waiting patiently in her doorway. “We would sit around and laugh and tease each other. We didn’t know that if we put our 100 francs together, we could do something really important.”
Saving for Change group members pool their savings, and borrow money to invest in small businesses. Selling foodstuff as Diallo does is quite common, as is selling phone cards, and buying and selling cloth and clothing. Members pay back their loans with 10 percent interest, and the money grows in the group fund for 12 months, when all the assets are disbursed to members equally, and a 12-month cycle starts again. Last fall at the end of the last cycle, each member got nearly $50.
Mariama Ly, a 38-year-old mother of four wearing a bright red head scarf that forms a perfect circle around her face, says she did really well this past year. “I bought new furniture for my house, a bicycle for my son, and I invested the rest in my business,” she says brightly.
Her enthusiasm is easy to understand when you hear her story: Unable to find any steady work in their village, called Bandafassi, Ly’s husband had to move to Dakar where he is a fisherman. It is a good 800 kilometers (just under 500 miles) away, so he only comes home for the annual Tabaski holiday, which marks the end of the Ramadan fasting period. He stays for a couple of weeks, handing over the money he has earned to support the family.
But the money rarely lasted a year, forcing Ly to buy much of the food and clothing for her family on credit. When her husband came home, Ly says “He dealt with all my debts, he had to go around the village paying it all back.” It was the source of stress in their relationship.
After she joined the Saving for Change group in her village, staff from an organization called La Lumière used a grant from Oxfam to teach her and the other members how to establish a saving fund, make loans to members, start their individual businesses, pay back the loans, and re-invest her profits.
Ly began selling dried fish, pepper, vinegar, and other spices around her neighborhood. She says she can now cover all her household expenses. And her relationship with her husband has completely changed. “He’s treating me really well,” she says proudly outside her small home, the only one in her neighborhood with new thatch on the roof. “We talk a lot, we talk things over together. Before he just did what he wanted, but now we discuss it first.
“He’s really happy that I take this responsibility. I get a lot of respect from him now, and it makes me really happy.” Best of all, she says, “when he comes back to the house, there is just peace and love between us.”
Her group president Diallo says harnessing the modest savings and energy of the group members has created similar changes for all of them. “Before we had no way to help ourselves, but now with just 100 francs a week we solve a lot of problems, and help our husbands and our children.” Now, instead of sitting around drinking tea and teasing each other, she says “We tease the men. We are handling all the expenses now, not them.”
]]>Dalla Sissoko is watching this closely. Sissoko is one of the founders of the TONUS organization in Mali in 1995. This social service agency is now one of Oxfam America's partners in the Saving for Change program in Mali, and Sissoko is a micro-finance expert and head of the women's program at TONUS.
"We say that women are at the center of the Saving for Change program," Sissoko said on a rainy afternoon at the TONUS headquarters outside Bamako. "When we go to a village we have to speak with a chief or council, but after these initial meetings we are in contact only with the women. The women run the bank, keep the books, and run the meetings," she said.
It's no surprise that the women also enjoy the benefits of their Saving for Change group, Sissoko says. "We are seeing women have more money for buying things for the family and paying school fees. And many have extra money to buy things for their daughters when they get married, like a bed, and pots and pans."
Having more money to contribute to the family needs and expenses is a change in the role of women in the family. Men can see the benefits of the program, and their acceptance is important because participation in Saving for Change involves a time commitment from the busiest person in the family. "With Saving for Change women have two hours each week to talk among themselves, and they can have a break," Sissoko says, "They enjoy the company of their friends. It's really important to have this space. More and more, the men are allowing this time, and things are changing slowly. Many of the women are starting to wear better clothes, and the families are eating better. The health of children and their families are improving also, and men appreciate this."
But membership in a Saving for Change group goes beyond money and fellowship. "In most cases women do not get much information or training, but with the Saving for Change program they can get training among themselves," Sissoko says. TONUS trains women in managing their accounts, and in preventing and treating malaria, one of the most serious health threats in Mali.
And as with any organized group of knowledgeable people, Saving for Change group members look beyond their own personal concerns and advocate for ways to improve their community. In this case, groups propose ways to prevent malaria in the entire village. "They eventually start speaking in public," Sissoko says, ?and have opinions people respect."
Being involved in public affairs, and actually speaking your mind in public is simply out of the question for most village women in Mali. This is particularly the case in questions about public health, agriculture, access to water, and other crucial issues facing many villages. "Women are not really involved in development activities, these are dominated by men," Sissoko says. "Women just don?t make any of the decisions about development. They are not consulted and they are not heard. Women do not speak out in public. When they are young they are told that if they speak out they will never get a husband."
Minata Konaré, a 24-year-old mother of three and member of a Savings for Change group says that having the confidence to speak in public is one of the biggest changes for her, and it all started at her group meetings. "I never used to be able to speak in public, but now I can talk in public," Konaré says while passing by a friend's house on her way to work selling food in the village of Guily, near where she lives. "I used to always be at my house, but now I come to the village and talk with the other women, so this is opening things up for me."
The positive changes for women seen by Sissoko and others are being documented in a study carried out by Oxfam in late 2006. It looked at the progress being made in 20 villages in Mali, where researchers got numerous comments from women members of Saving for Change groups as well as their husbands and others in the communities. "Women are earning more money, and their new income enhances their status in their households," one researcher commented. "They are purchasing things they couldn't previously afford, they are contributing more to household expenses, and they report helping their husbands more."
Sissoko says women are creating ways for villages to better store their grains and other crops, eliminate mosquito breeding areas, and promote other positive changes they see helping everyone in the community. "Saving for Change helps women build confidence in their ability to do things," Sissoko says. "The entire village benefits from Saving for Change."
]]>In any society, developing or not, women are likely to be poorer, less educated, and less empowered than men. Oxfam recognizes women should be valued equally and enabled to reach their potential. What’s more, research has shown that when women earn income, they are more likely than men to spend it on family welfare. And when women are educated, they make decisions that benefit their families and influence their communities.
In the pages that follow, you'll read about how Oxfam is targeting the laws in Mozambique and the gender violence in El Salvador that severely disadvantage women. You'll also learn how Oxfam is equipping women to mediate peace in West Africa and to grow the income of their families. In every case, when it comes to empowering women, men are an equal part of the equation. Oxfam is striving to shape societies that not only permit women to be contributors, but societies that recognize that if they don't seize upon what women can offer, they are failing to leverage one of their most valuable assets.
]]>Also in this issue, working together to save the family farm, the power of reading empowers women in The Gambia, and updates on Oxfam's work in Bolivia and in eastern and southern Africa.
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