Climbing Out of Poverty

BANGLADESH: Suva Rani is typical of the many poor people given a lifeline by a microfinance project funded by AusAID.

Suva Rani from Lalmonirhat district in the country 's northwest did not complete year three at primary school. Her father, an impoverished day labourer, could not afford the fees.

At 15, she married Bhupal Chandra, another day labourer. Suva and Bhupal began married life in extreme hardship.

They often went hungry during the monga (famine season) when Bhupal was out of work. Yet Suva gave birth to four children in a few short years which brought the couple great joy but also worsened their poverty.

In 2002, along with other poor women in her area, Suva enrolled in an AusAID-funded BRAC* finance program. During its course she was shown how to manage a loan of 4,000 taka (about $80) to start up a paddy husking business. Suva worked furiously to make her business a success and was scrupulous about making regular repayments on her loan. Her efforts weren 't in vain.

In 2003, Suva took out a second slightly larger loan. She invested the money in a cow-rearing business and sold milk in the local markets. By the end of the year she 'd managed to save 14,000 taka which she used to lease a piece of land for Bhupal to cultivate.

In 2004, she took a third loan (8,000 taka) to expand her paddy husking business. At the end of 2004, Suva 's capital had risen to 25,000 taka. She set up a tube well and installed a sanitary latrine in her house. A further loan allowed her to engage her son in a banana-selling business.

In just three years, Suva 's capital reached 42,000 taka, thanks to the profit from both her son 's work and through selling milk at the markets. Now in 2007 she 's leasing more agricultural land for banana cultivation.

While perhaps not everyone has Suva Rani 's flair for business her remarkable success nevertheless demonstrates what women can achieve with access to financial advice, a manageable loan and a bit of support. Today she stands proudly as a self-reliant woman. Each of her children goes to school, her family is healthy and well nourished, and they can all look to a brighter future.

Suva Rani climbed her way out of poverty - and pulled her family with her - through her own determination and the chance given to her by an AusAID-funded BRAC microfinance program.

* Building Resources Across Communities (BRAC) programs cover all 64 districts of Bangladesh and 78 per cent of all rural villages. BRAC employs over 95,000 people to implement its programs, the benefits of which touch 110 million people. To date, AusAID has contributed $6.6 million to help.

ABOVE: A little help goes a long way. Suva Rani has made the most of her chance to break the poverty cycle. Photo: BRAC

This and other stories can be found in AusAID's Focus Magazine

2007