household economy, household finance, micro finance & gender analysis thalia kidder oxfam gb...
TRANSCRIPT
Household Economy, Household Finance, Micro Finance & Gender
Analysis
Thalia Kidder Oxfam GB 2002
• A. MicroCredit, MicroEnterprise & Gender
• B. What do Microenterpreneurs need?
• C. MF’s contribution to poverty reduction – vulnerability & consumption smoothing
• D. Household Economies & Household Finance
• E. Training tools on gendered h’hold finance
A. MicroCredit, MicroEnterprise & Gender Perspective
• Target women with loans• Reduce barriers • a) collateral • b) Training• c) Logistics• d) Control• Institutional systems
• What does a woman microenterpreneur need?
• Are all women microenterpreneurs?• A focus on women is gender analysis?• How do MF services reduce poverty?• What financial services do
households need? Do women need?• How do we have an impact on gender
relations and roles…. And on men?
B. Let’s question the assumptions…
Credit… for production/business… for women?
MicroCredit, MicroEnterprise & Gender Perspective
• Why are women in certain sectors or activities (low returns, vulnerable)? Diversification and control in markets
• Are MICRO enterprises viable? Why do women work alone? Training on economic organisation…
Sustainable Economic Projects:what resources are needed?
BAKERY
Financial Services:
Credit, Insurance,
Reserves, Transfers
Skills
Efficient
Organizational
Structure
Marketing
TIME &
Labor
Assets,
C. Income-Poverty Reduction: What matters? (1)
• Level of Income Income Promotion Strategies
• (in)Stability of Income• (un)Certainty of Income• Income Smoothing and • Consumption Smoothing Strategies
Income-Poverty Reduction: what matters? (2)• Income Smoothing Strategies:
– Diversify income sources– Protect against external shocks– Adapt products/services to markets– Increase flexibility of labor supply / skills
• Consumption Smoothing Strategies:– Manage money to meet daily/weekly expenses
throughout the year & life cycle– Provide mechanisms to cover expected large
expenses and unpredictable events & losses.
(3) Consumption smoothing: the minimum acceptable consumption level
0
100
200
300
400
500
600
700
800
900
1000
feb mar april may june july aug sept oct nov dec jan
Minimumacceptable level
(4)Consumption Smoothing: Large Expenses
0
100200
300400
500600
700800
900
feb
ruar
y
mar
ch
apri
l
may
jun
e
july
aug
ust
sep
tem
ber
oct
ob
er
no
vem
ber
dec
emb
er
jan
uar
y
School expenses
Festivals
Illness/birth
Planting/harvest
Housing repair
Basic consumption
(5)Consumption Smoothing: Income Sources and Levels
0
100
200
300
400
500
600
700
800
900
february may august november
Grains harvest
Plantain harvest
Migrant/temp wk.
Small trading
Remittances
Sale of animals
(6)Consumption smoothing: the minimum acceptable consumption level
0
100
200
300
400
500
600
700
800
900
1000
feb mar april may june july aug sept oct nov dec jan
Minimumacceptable level
Above
At risk
Extreme poverty
(7)Income &Consumption Smoothing
& the unrecognized potential of MF: WHY?• The threat of falling into poverty can be as constraining and disempowering as the impact of occasional deprivation (Sen)
• The poor tend to value financial services that address the risk-coping motive, the better-off can afford those that generate income and accumulate assets (Zeller)
• Women value consumption smoothing mechanisms because of vulnerabilities specific to their life cycles and gender roles - due to marriage, births, childcare, health needs, education needs, old age, abandonment, separation and violence against women.
(8)Income &Consumption Smoothing
& the unrecognized potential of MF: HOW?• Identify common large expenses, • (idiosyncratic) risks, threats & ‘bad times’• Look at the ‘financial landscape’ - analyze how
people currently cope …borrowing, saving...
• Identify what ‘doesn’t work well’ for people• Figure out in what areas MFI products and
services might do better…– Savings for births, school expenses, marriages– life & accident insurance, health care mechanisms– emergency loans, reserves against natural disasters
D. What do Financial Services Do? (I)
1. They function to transfer money
from one place...
...to another.- -
2. They function to convert the value of assets ...
...into cash (pawns and mortgages)
3. They permit building and accessing large sums of money
through savings, credit and insurance.
(a) Savings - give up a portion of current income to
accumulate a lump sum in the future
amounts and periods are flexible
requires discipline and security
Time line…….
(b) Insurance -small payments out of current incomerelatively large sum of money, but...accessible only in case of certain events
???
Time line…….
commitment to give up part of future income to repay loan
(c ) Credit/Loans -immediate access to large sum
interest paid for the right to spend now and pay later
the payments and periods are fixed
Time line…….
+%
(ii) For what do we need large sums of cash?
1. Economic projects
• Inputs• Working Capital• Equipment and tools• Transportation• Marketing
2. Investments for Care of People
• Health care, illness• Births• School expenses• Housing Repairs• Stoves• Plumbing - sanitation• Washing Facilities• Adult Education• Backyard gardens, animals
3. Cultural and community expenses
• Funerals• Festivals• Religious Ceremonies• Weddings• Travel
4.Consumer goods
• Radios• Furniture• Electronics• Clothing
(iii) How are these sums accumulated and accessed?
For Economic Projects....?
Care: Health, education and housing....?
Cultural events....?
Consumer goods....?
Who (in the family) is responsible for these expenses?
Women?
Parents?
Men?
Young people?
Other relatives?
The Household & the Economy
What goods and services do householdsuse - need - depend on for their welfare / well being?
Question 1:
Clothing- washing and ironingHousing- annual roof repair!Sanitation (outhouse, bathing area)Education- helping with schoolworkFood…….
The Household & the Economy
Where do these come from? How are these goods and services provided?
Question 2: IDENTIFYING SOURCES
Purchased in the cash market
Natural Resources - the environment
The State
Household work (unpaid)
Exchange, barter, social/family networks (unpaid)
Hire - pay someone for services
Goods
Services
The Household & the Economy
Where do these come from? How are these goods and services provided?
Question 3: DOING THE EXERCISE
Buy Natural Resources
State H’hold work
social/family networks
Hireothers
List:good 1
2
3
service 1 2
The Household & the Economy
Where do these come from? How are these goods and services provided?
Question 3: VARIATION - highlight most important sources
Buy Natural Resources
State H’hold work
social/family networks
Hireothers
List:good 1
2
3
service 1 2
The Household & the Economy
WHO IS RESPONSIBLE for providing thesegoods and services?
Question 4: GENDER ANALYSIS
Buy Natural Resources
State H’hold work
social/family networks
Hireothers
List:good 1
2
3
service 1 2
The Household & the Economy: The theory behind policy and
programmes: How does a household’s welfare improve?
Household
(cash) Market:
goods & services
the State (health
education, social security)
Natural
resources
social networks
community work
barter
Household -
reproductive or
‘caring’ work
Unpaid household work:
production / subsistence agr.