International Labour Organization (ILO)

Prevention of Family Indebtedness with Micro Finance Schemes and Related Services (in collaboration with the Department of Labour in Sindh and the Government of the Netherlands)

Proposed Duration: 2001 – 2003

Objectives:

• To help very poor families that are most likely to give away their children (especially girls) into bondage, by providing micro finance opportunities;

• Provide complementary support services such as new income generating activities, education and primary health care;

• To plan and formulate the expansion of the project to other areas/sectors of the country;

• To create a non-confrontational, consensus-building approach so as to convince stakeholders of the use of micro-finance as a strategic tool to reduce forced labour.

Activities:

• Induce existing micro-finance institutions to develop, test and offer savings and loans tailor-made for families vulnerable to place their child in unfree labour as a result of debt traps;

• Include dowry savings schemes, health insurance programmes, funeral savings plans and related services in the micro finance programme;

• Gather resources from private sponsors (banks, etc.) and the Government for activities concerning community sensitisation, education, primary health care, income generating activities, group organization, and economic empowerment;

• Encourage agriculture sharecroppers (haris) to focus on a homogenous labour demand, so as to increase the scope for improvement in production technologies and working conditions;

• Provide legal support and advisory services to poor families.