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.”
]]>Sorn says she spends less time weeding her fields than she used to since she started using a mechanical weeding device she helped create with assistance from Oxfam’s partner in Cambodia, RACHANA, an organization based in the southern Takeo province. When farmers use this new tool, they can accomplish in a few hours what used to take them many days.
Oxfam supported RACHANA in designing and testing the mechanical weeders that help farmers grow more rice. Switching to innovative rice-growing systems and using a mechanical weeder can create more than 100 percent gains in production—a huge improvement for small-scale rice growers like Sorn and her sister.
Sorn is among 100 families in the area growing rice using an array of special methods called the System of Rice Intensification, or SRI. SRI represents an accessible form of innovation for small-scale farmers like Sorn: it boosts yields through different ways of plowing fields and improving soil fertility, and of planting and transplanting rice. SRI helps the plants grow stronger and more resistant to pests and diseases. It doesn't require special seed varieties. And because the plants are healthier, the farmers need less fertilizer and pesticides, which saves them money and preserves the environment.
One of SRI’s techniques involves transplanting single seedlings farther apart, instead of transplanting them in bunches. The distance helps seedlings grow stronger roots. SRI farmers plant their seedlings in rows, so they can weed around the plants more easily. A mechanical weeder helps them speed up the process.
In Sorn’s village of Prey Pa’e, RACHANA found a metalworker named Ben Pen who was willing to work with the local farmers to develop the weeders. With RACHANA’s help, in 2009 he began to adapt designs from India and other countries; he optimized them based on feedback from women farmers. Sorn and about 20 others tested five prototypes. With Pen, they developed one- and two-wheel weeders, which farmers use for different soil and weed conditions. The weeders weigh between 4 and 12 pounds. Each of them has a long handle with which the farmers push narrow wheels with steel spikes, churning the earth and tearing up the weeds.
Most of the farmers responsible for testing the weeders were women. Though men help prepare the soil and assist with the harvest, women do most of the work in the fields. Pen and RACHANA wanted to make sure that the weeder designs are suitable for them. “These weeders are helping women avoid back pain, and neck pain,” Pen says. “They can stand up, and it’s a lot faster.”
Sorn moves down the rows between the rice plants pushing the weeder in front of her like a lawn mower. The tool splashes through a thin layer of water, cutting up clumps of grass and mud.
“There’s quite a difference when you use the weeding tools,” Sorn says. “If you weed by hand you only get the top of the weed, you don’t get the root, and it grows again. When you use the weeding tool, it destroys the root and churns the weed into the soil—it’s better for the soil.”
Sorn farms a little less than two acres. Having the weeder helps Sorn and her sister get their weeding done faster. She says saving this time and labor is particularly important for her now: her husband passed away and her six children are all grown and have left the village to work and study. She’s 55, alone, and needs the help.
RACHANA’s research showed that by combining weeders with SRI, farmers could increase their production to average 5.6 tons per hectare, up from an average of 2.2 tons using traditional techniques. (A hectare is about 2.45 acres.) The organization ordered 900 of the three most popular weeders from Pen; it is selling them to farmers across the country. The tools cost about $20—a significant investment, prompting groups of two or three neighbors to buy the tools together and share them.
The investment is worth the time saved: the women in Prey Pa’e say it takes three people two weeks to weed a hectare, and by the time they finish, the weeds are already growing again. “With the weeder, three people can finish in one morning,” says Pen Rat, who was part of the prototype testing team.
Sorn says she helped test the one-wheel weeder, and suggested that Pen lower the angle of the handle, so women would be pushing at waist level. “I thought women would have more strength to push and pull,” she says.
Simple forms of innovation, like these mechanical weeders, encourage farmers to come together, share their ideas, and play a role in developing technological improvements for their farming. This type of endeavor is just a small part of Oxfam’s work to transform agriculture for the poorest farmers in Cambodia.
Farmers like Sorn Ken confirm this: “Having this weeder is like having another person,” she says.
]]>Amid cheers from a throng of enthusiastic supporters and international media, Make Trade Fair won the day.
Oxfam's trade campaign was launched.
Within hours of the Hong Kong debut, events were held in 25 cities including Brussels, Dublin, Geneva, Mexico City, San Salvador, and Washington, D.C. These events ranged from press conferences and symposiums to a rock concert in London’s Trafalgar Square.
Oxfam's trade campaign seeks to unite concerned citizens around the world in calling for fair trade policies that will help move millions of people out of poverty.
Nobel Prize Professor Amartya Sen, UN Secretary-General Kofi Annan, and musician and social activist Bono were among those who endorsed the campaign. "Oxfam has got it right," said Bono. "It wouldn't cost much to change the rules of trade so that poor countries can work their way out of poverty. But the world's leaders won't act unless they hear enough people telling them."
Also in this issue of EXCHANGE, writers Frances and Anna Lappé discuss their book Hope's Edge: The Next Diet for a Small Planet, and we bring you updates on Oxfam's work with water and sanitation, drought in Ethiopia, and indigenous women in the highlands of Peru who are speaking out after decades of violence.
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