Turning Mathematical Ignorance into Economic Empowerment: Rural Women’s Stories of Economic Empowerment and Poverty Redu

1. Turning Mathematical Ignorance into Economic Empowerment: Rural Women’s Stories of Economic Empowerment and Poverty Reduction in Malawi Jonathan Makuwira Global Studies, Social Science & Planning RMIT University

2. Malawi: Population Distribution • Total Population: 13,066,320 • Males: 6,365,771 (49%) • Females: 6,700,549 (51%) • 18+ yrs: 6,216,432 (of which 3.2million are females) National Statistical Office, 2008

3. Malawi definition of Poverty A household is considered poor if its total annual per capita consumption expenditure is below a threshold, or a poverty line ($2/day). Poverty line • Subsistence minimum expressed in Malawi Kwacha (MWK) based on the cost-of-basic-needs methodology. Cost-of-basic-needs methodology: • Minimum food expenditure • Critical non-food consumption (NSO, 2007, p. 87)

4. Scale of poverty

5. Proportion of population in poverty by education qualification of household head

6. Metamorphosis of poverty reduction strategies in Malawi • Structural Adjustment Programs (SAPs) • Vision 20:20 • Malawi Poverty Reduction Strategy Papers (MPRSPs) • Malawi Economic Growth Strategy (MEGS) • Malawi Growth and Development Strategy (MGDS)

7. Malawi Growth and Development Strategy (MGDS) MGDS puts poverty reduction and governance at the centre stage of development by emphasising economic growth and wealth creation. • Strategy singles out six priorities: • Agriculture and food security • Irrigation and water development • Transport and communication • Energy • Integrated rural development • HIV/AIDS prevention and management (Faiti, 2006)

8. Programs in place • Fertilizer and seed subsidy • Cash for work public works program • Presidential initiative for girls education • Bursaries for needy students

9. Rural Poverty and Response Mechanisms Rural poverty in Malawi is identified with absence of household food security and usually equated with own-production of maize. Efforts to eliminate poverty have therefore focused on intensifying maize production by promoting the adoption of hybrid maize seed and fertiliser (Orr & Orr, 2002). Microfinance

10. Factors affecting women’s economic empowerment in Malawi • Patriarchal family and social structures • Women’s domestic responsibilities • Limited women’s access & control over proceeds of their own labour • Inequality in access to economic opportunities • Limited decision-making power • Limited entrepreneurial and business skills • Less access to financial capital • Gender differences in access to and control over resources • Gender bias in formal education • Unequal access to productive resources (Chirwa, 2004)

11. One good afternoon over lunch

12. CASE STUDY Name: Matawale Women’s Village Banking Composition: 10 Women Average age: 67 years Capital: MK1,000.00 at the start of the year Other sources: ‘Ganyu’ (manual labour)

13. The Mathematics Example • Borrow MWK1,000.00 any day of the month • Pay MWK1,300.00 at the end of the month (i.e. For every MWK100 borrowed, add MWK30 at the end of the month) Interest rate: 30% per month (360% p.a. according to the rules of simple interest).

14. Rules of the game: • If one cannot pay whole amount, Interest MUST be paid by end of month (No compound interest). • Non-members allowed to borrow at a higher interest (same rule as above applies) • Men have to go through the village headman as a witness just in case…. Principles of governance • Trust • Sincerity • Accountability • Transparency

15. Business Activities • Chicken rearing • Buying and selling agricultural produce such as maize, sunflower, pigeon peas, tomato and tobacco

16. Business activities contd.

17. Benefits

18. Challenges Limited entrepreneurial and business skills Competition with other similar groupings Illiteracy Interference by men Suggestion for improvement Capacity development through development education (rudimentary ideas of what development is; literacy classes; business skills development)