Providing impoverished Haitian women with small business loans
the problem:
A long-time advocate of women’s rights, I am aware that it is often the women of the underdeveloped world that suffer most. Our Haitian counterparts are habitually devalued, subjected to rape and abuse, and all-but-excluded from the workforce. For a woman to go unmarried past her early twenties or to be left a widow almost guarantees her a life of hand-to-mouth living.
For many single, Haitian women, the only way to provide for themselves and their children is to find manual labor working on local farms for what exchanges to about 55 cents a day. Employment is usually offered on a day-to-day basis, so these women wait in the marketplace all day to get picked up by an employer. Some days they walk home empty-handed.
Although Haiti has received more international aid than any other nation, much of this money is simply pocketed by corrupt government officials; still more is mismanaged; and most of the remainder is focused on the more valued male population. Another problem is that much of the aid is given in the form of handouts—creating a dependency mentality I’ve seen evidenced time and again. Handouts lift next to no one out of extreme poverty.
vital stats:
people impacted:
30people involved:
15why it's important:
We are all in this together. Ending extreme poverty is my life's mission.
the plan of action:
The best way to cause great change is to start small, so we’ve chosen six ladies in one Haitian community to make up our pilot project. We chose the community of Lina, because last year I was a part of a similar micro-finance project for the men of Lina. The man who faithfully and brilliantly runs this other project, Mois Benoit, is honest and talented and has seen much success. For this reason, his wife and I have developed our own micro-finance idea specifically for Lina’s women.
We’ve chosen six women to receive loans they will have one year to repay at a low (10% per year) interest rate. Local moneylenders currently charge up to 20% per month, only compounding the problem. These women have no other opportunity to improve their quality of life. According to Nobel Peace Prize Winner Muhammed Yunus, at 98% payback rates, single women with no money and no land are globally the least likely to default on a loan because they know they have no other options—no one is there to bail them out or give them another chance. These six women in Lina are desperate and literally begging for an opportunity.
Our plan, provided we can raise the money, is this:
Two women have a skill. They are seamstresses, but they have no sewing machine and it is inefficient and unproductive to sew by hand. So we found a ladies sewing group at a local church who were willing to donate two sewing machines. It will take a decent $300 US to cover shipping the machines, paying customs fees, and converting the machines to a foot pedal (since there is no electricity in Lina to run them).
The machines will become community equipment, managed by Madam Mois, but open to any woman who joins the loan program. In addition, each of the six women have requested a small loan to enable them to become self-employed. Their business ideas include selling local produce at a stand, providing the community with oils and household items, and, of course, seamstressing.
Each woman will receive a $25 US loan on August 1, 2009, to put her idea into action. Payments will be made quarterly: a 275 gourd (about $6.88 US) payment will be due on the following dates: November 2, 2009; February 1, 2010; May 3, 2010; and August 2, 2010. At the end of the year, the account should have in it approximately $550, minus 4% yearly interest that will go to Madam Mois for managing the loans. The remaining 6% interest will go back into the account to continue to fund the project. We have already scheduled a meeting one year from now to re-evaluate the program.
how you can get involved:
Donate please!
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