Contributor: Kimito Mishina

NAMANGAN, Uzbekistan - After eating plov (a traditional rice dish in Uzbekistan) and a slice of watermelon, Nilufar Ismailova steps out of the office and into the unrelenting heat. It is 1pm and the temperature is 40 degrees centigrade. Today, Nilufar will spend three hours walking under the blazing sun, traversing cotton fields, jumping over irrigation ditches, hiking up hills, and shuffling in and out of six taxis to visit 12 clients.

Nilufar is a loan officer for Mercy Corps' Women's Micro-Credit Program (WMCP) in the Ferghana Valley. She is 22 years old, recently married and six months pregnant.

Based in Namangan, a city of over 350,000 people, Nilufar works with poor women entrepreneurs and helps them get small loans to start or expand their micro-enterprises. Since its inception in July 2001, the WMCP has dispersed over 2,350 loans totaling $161,000. The loans range between $70 and $140, a significant amount given that the average monthly income for a family of five is $35. Women invest the loans in a variety of business activities including glue production, silk weaving, sewing, and retail.

For Nilufar, working for the WMCP is both difficult and exciting. In addition to conducting site visits, she has her hands full overseeing a portfolio of 366 clients. "My job is very hard, but when women come in and thank me, I forget about how tough the work is," says Nilufar.

After work, Nilufar catches a taxi bus to her husband's home in Yangikurgan, a village 30 minutes outside of Namangan. She first met her husband in primary school. He currently works as an electrician. At 8pm, Nilufar leaves her in-law's house and spends the rest of the evening with her mother.

"My mother is alone now," she says sadly. "My father died recently and I do not have brothers or sisters."

Before joining the WMCP, Nilufar worked for the Government Committee on Bankruptcy and consulted companies on bankruptcy laws. Nilufar was not satisfied by the work and looked for other opportunities. After learning about a job opening with WMCP, she was eager to join.

"The whole idea of women getting loans for their own businesses is new to Uzbekistan and very interesting work," she explains. "Our money is a great help to them because Uzbekistan's banking system is complex and it is very hard for common women to get credit."

Foreign cultures have always captured Nilufar's imagination. She has many close friends from Pakistan and Kazakhstan. Since childhood, she has been fascinated by Japan. "When I was little I wanted to be a ninja," Nilufar says playfully. If Nilufar were offered an airplane ticket to any destination in the world, she would choose to fly to Japan. As a student at Tashkent State Economic University she dreamed of studying in Japan or the United States. In addition to speaking English, Uzbek, Russian, Turkish, and Kazakh, Nilufar can read and write in Urdu and Korean. Japanese was not offered at her university.

After graduating and returning to Namangan, Nilufar knew that her aspiration to study abroad would have to end. In Namangan, where Uzbek traditions remain strong, the pressure to marry young and a start a family is overbearing. "I thought I would marry, have lots of children, become a grandmother and die," laments Nilufar.

In keeping with Uzbek custom for new brides, Nilufar has shed her skirts and blouses for traditional Uzbek dress and head scarf. "My husband's family is very conservative," she explains. The traditional clothing has been a burden and a blessing on site visits. On one hand the clothing makes it hard to jump over drainage canals, but on the other hand it makes it easier to connect with clients.

"I don't like this way of dressing, but it helps during monitoring. Women feel closer to me," says Nilufar.

Working for Mercy Corps has greatly impacted Nilufar's life. During the early stages of the WMCP, one of her responsibilities was to promote the micro-credit program. She spoke to large audiences of women organized by the Mahalla (local government administration) to get the message out.

"At first, I was scared to speak in front of so many people. I spoke very quietly, but now I enjoy talking with groups of women," she says proudly. "Our clients are very intelligent and clever. They know the ups and downs of life. They helped me cope when my father died and have given me advice on how to relate with my in-laws. They have even taught me how to cook. I can't cook."

More significantly, the interaction with foreign staff and visitors has reawakened her desire to travel overseas and learn more about other countries.

"Working for Mercy Corps has opened doors for me. I have learned a great deal, and now I have opportunities to meet new people and use English," says Nilufar. Someday Nilufar hopes to study abroad to learn more about microfinance.

Nilufar plans to return to the WMCP after she gives birth and takes some much needed time off.

"Uzbekistan has a great future," Nilufar says with conviction. By helping women to take charge of their lives and improve their standard of living, Nilufar is quietly pushing her country in a positive direction.

Read more ▸

When Asila Hamrokulova speaks she wheezes. Asila, age 48, developed asthma in 1995 and has been unable to find work because of her condition. She is a single mother of five children between seven and 26 years of age. Her oldest son no longer lives at home. Her youngest son has Down's syndrome and has never received treatment. Her only daughter suffers from a heart problem which requires a visit to the hospital two times a year.

Asila and her four children live on the fourth floor in a rundown apartment building in Namangan. The apartment is bare and the picture of poverty is clear. Inside, the wallpaper is peeling, the walls and doors have holes, the furniture is tattered and stained, and the blankets, which hang in the doorways, are old and ripped. There are no family photos, fancy china, rugs, or decorative objects to brighten up the apartment. The wood floors are worn and dusty. A damaged, empty bookcase sits in the corner; crumpled clothes and a garbage bag rest on one of its shelves. All the light fixtures are missing bulbs except one - Asila can only afford to buy one light bulb. A jar full of dirty water sits on top of the broken kitchen sink.

Asila and her children are among the thousands of families that depend on welfare payments from the local government. Each month, the entire family receives a meager 39,000 soum, about $34. Until recently, this payment was Asila's only source of income and was not enough to sustain the family. Her children were always hungry and could not attend school because they did not have clothes or books. Most of the time, Asila could not even purchase bread. Debts quickly piled up as she could not afford to pay her monthly rent or utilities.

A substantial portion of the family's income is used to cover Asila's medicine, which costs 4,000 soum a month. The health insurance system in Uzbekistan cannot help her defray the costs of her asthma.

Before losing her job, Asila worked as a cashier at a building materials factory in Namangan. The factory went bankrupt in 1997. Her medical "handicap" makes it impossible to find employment. According to government labor laws, workers with medical handicaps must retire at the age of 45. "I cannot do other work because I have asthma," Asila laments.

Asila was unemployed for nearly five years.

Uzbekistan's transition from a Soviet satellite economy into an independent market system has reduced the standard of living of many families. Factories have closed, pensions have shrunk, and jobs are nowhere to be found. With few options available, most women have little choice but to become entrepreneurs and operate their own micro-businesses. The scarcity of financial capital, however, has undercut the ability of women to start or grow micro-enterprises. Banks require collateral, which micro-enterprise owners do not have, and moneylenders are reluctant to extend credit to women because of conservative attitudes. With no money to feed entrepreneurship, poverty grows.

Recognizing the need to help women generate more income for their families, Mercy Corps began implementing the Women's Micro-Credit Program (WMCP) in Namangan Oblast in June 2001. From a main office in Namangan and three branch offices in outlying areas, the WMCP has provided over 2,350 loans ranging between $70 and $140. The loans are dispersed to "solidarity groups" of six-to-seven women who guarantee payment of each other's loans.

The infusion of capital has already improved the standard of living for many families including Asila's. It was during a community meeting that Asila first learned about the WMCP. After hearing about the program, she formed a solidarity group with five other women.

With the micro-credit, Asila started her own micro-enterprise in her neighborhood selling candy, laundry detergent, cigarettes, body soap and other small goods. Through her business, she now earns 30,000 soum a month on top of her welfare payments. This extra income has benefited her family enormously. She has paid her debts and now her children attend school.

"My children are no longer hungry," Asila says with relief. "We can buy the things that we need now."

The loan amounts may seem insignificant, but for women in the Ferghana Valley the micro-credit has been a tremendous boost for income generation and confidence. Asila has successfully repaid her first two loans, and is currently in her third cycle with a loan valued at $140. While Asila is saddened by the appearance of her apartment, she finds satisfaction in sending her children to school and running her own micro-enterprise.

"I am proud that I am earning money myself," she says.

Read more ▸