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Latin America – WCCN – Working Capital for Community Needs – Investing in Social Change - http://wccn.org/Who-We-Are
Understanding Poverty in Latin America - Women
Direct Link to Full 6-Page 2014-2016 Publication:
All poverty is not alike.
Moreover, poverty is not one-dimensional, meaning it is not defined exclusively
by lack of financial income. Today, poverty is defined as a combination of adverse
effects and multiple deprivations. In
other words, what does a poor
household in Latin America lack, and what are the common attributes of a poor
household that cause it to remain living in continuous poverty or in a
continuous poverty spiral, meaning falling back
in and out of poverty?
Research shows a direct
correlation between reduced adverse effects of poverty on a family when a woman
in the home has a source of income.
http://wccn.org/free-trade-zones
By Rose-Marie Avin – 2014 - “While
the Free Trade Zones (FTZs) have been a major source of employment for women,
they have not created jobs that can bring women out of poverty and contribute
to their empowerment. On the contrary, management in these factories pays low
wages, provides difficult working conditions, and tries to suppress the women’s
labor rights. According to Sonia Agurto of FIDEG, a well-known research
institute in Nicaragua, the average monthly salary in the FTZs is 850 cordobas
(about 62 US dollars) higher than the minimum wage of 400 (29 US dollars)
cordobas. However, the basic market basket for a family of five cost 2550 (185
US dollars) cordobas. It takes three persons working in a FTZ to buy the basic
market basket. To make ends meet, many women work extremely long hours.
Working conditions are also difficult. There have been reported cases of
physical mistreatment, as was illustrated by the revolt at Chentex during the
mid-1990s. At Chentex, workers rose up because of poor working conditions and
the fact they were not been treated with respect by management. They were treated
like "cattle" as one former worker said. According to Gladis
Manzanares, former general secretary of one of the labor unions in the FTZs,
one of the major problems is the difficulty of forming labor unions. Workers
suspected of forming labor unions get fired and that can be a devastating blow
for a female head of household. Furthermore, many women do not know the law and
their rights.”
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According to the World Bank
Group, Latin American poor households have
at least six common attributes
and poverty deprivations:
1. No
access to financial services and limited to no access to other services
and market opportunities
2. Women
without income living in the home
3. Children
out of school
4. Five years
or fewer of formal education
5. No running
water, electricity or toilet in the home
6. Homes that
are sub-standard and made out of precarious materials
For this reason, creating
opportunities for empowering working poor women in Latin America will remain a
key priority of WCCN. Additionally, research indicates high levels of poverty
and household deprivations reported in
rural areas of Latin America. For this reason, rural-based borrowers will also remain a priority target group for WCCN.