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| Small loans fund big changes for unemployed women |
| CCTV.COM 2002-11-27 10:11:27 |
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For the past decade, China has been overhauling and reforming its state－owned businesses. The drive for more efficient operations has brought many benefits but it's also resulted in job cuts. In the northern Chinese city of Tianjin, the local women's federation is tackling the unemployment issue at the grass roots level. The group is using loans to help unemployed women get back to work.
The Tianjin project has a long name but a simple aim. It's called the Re－employment and Venture Creation Project for Laid－Off Women Workers and gives women small, collateral－free loans. It's been up and running for a year with help from the United Nations Development Program, the Australian Agency for International Development and the All－China Women's Federation.
The head of the Tianjin Women's Federation Wang Zhiqiu explains how the micro－credit system works. Wang said, "To qualify for a loan, applicants must be a laid－off female worker whose annual income is less than half the city average. The clients share some common characteristics. For example, most of them are in their 30s or 40s and their husbands are usually unemployed as well."
Wang Zhiqiu says the low－interest loans are designed to help the women start their own businesses. Qualified applicants can borrow the equivalent of about 500 US dollars a year and have to pay back about 20 US dollars in annual interest. If she can repay the loan on time, the option is there to borrow as much as 1,000 US dollars in the following years.
Li Shuhua lost her job in a towel factory 10 years ago. She tried many ways to make ends meet but none of them was overly successful. After her husband lost his job, Li Shuhua decided to launch a low－cost business to support her family. She used her 500 US dollars to set up a small bakery.
"I felt hopeless when I lost my job 10 years ago. It was hard for me to find a new job because I have no expertise and I'm not young anymore. I wanted to start my own business but I didn't have the money. The micro－credit system helps me solve my most pressing need," said Li Shuhua.
Li Shuhua says she can make 120 US dollars a month from her bakery and is considering borrowing more to expand her business.
Li Shuhua is just one of the former unemployed women in Tianjin exploring new financial horizons through the loan program. To get re－employment through diversified channels is becoming a way for laid－off women workers to cultivate their spirit of self－reliance. It is also helping them to get self－improvement and self－confidence.
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Editor: Han Ling CCTV.com
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