Alvin Darlanika Soedarjo, Jakarta – Microfinance programs led by women tend to be better run and more successful than those controlled by men, according to a report from an anti-poverty group.
The Community Recovery Program Final Report was conducted between 1998 and 2006 by the Association for Community Empowerment (ACE), a non-governmental organization (NGO) working to reduce poverty here.
"Women are better at saving money than men. In paying debts, women are also more on time," said ACE executive director Titik Hartini at the release of the report.
"Once women got access to credit and started running their own businesses, the profit went automatically into the needs of their families, such as child education and family health. Men, however, tended to spend their income for other needs first," she added.
ACE was established eight years ago to provide guidance and loans to single- or mixed-gender groups in 25 provinces.
The female groups in question included traditional medicine sellers in West Java, mat-weavers in East Lombok and fisherwomen in North Sumatra. Some groups were made up of widows.
"Women can be more diligent and scrupulous in their work. Unlike men, they also meet with their peers regularly," said association member Budi Santosa.
With Rp 600,000 (US$66) and the help of ACE volunteers, a women's association in North Sumatra started a business selling goods and processing food products. They made Rp 25 million in two years.
As the members repay their debt, the money is loaned to new groups, so successful people help others improve their lot.
The report found the empowerment project boosted solidarity and self-esteem among the poor. The program also appeared to help reduce tension in conflict areas.
The association operated from a $28.9 million fund from the Netherlands, the United Kingdom, Sweden, New Zealand and PT Belersdorf Indonesia. The United Nations Development Program, which also made donations, acted as a financial manager.
ACE, originally established by 27 NGOs as a reaction to the economic crisis of the late 1990s, has an expansive network of strategic partners and alliances throughout Indonesia.
Senior economist and ACE chair Emil Salim said national development programs should be focused on assisting the poor. The government categorizes people with an income below Rp 150,000 per month as living under the poverty line.
"People are poor not because they are stupid. It's because they don't have access to various needs, such as credit, education or infrastructure," Emil said.
"More roads should be built in regencies instead of turnpikes" in order to help people transport their products, he said. "Rural people's saleable goods, such as fish or vegetables, go bad quickly because they have no refrigerators."
Building small community health clinics in rural areas was much more important than constructing hospitals, he added.
"The current government lacks focus. They are not quite developing urban nor rural areas, industry nor agriculture. Targeting the poor, besides trying to reduce the dependence on rice consumption, is the best strategy to end poverty," Emil said.
The Central Bureau of Statistics reported on Sept. 1 that the poverty rate in Indonesia rose to 17.75 percent in March 2006, up from 16 percent in February 2005.