A Breath of New Life

A single mother of five, Asila Hamrokulova has been able to provide more for her children thanks in part to a small loan from Mercy Corps. Photo: Kimito Mishina for Mercy Corps

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.