From financial inclusion to social inclusion

In Peru, the development of a program to increase economic activity in rural areas enables women's empowerment.

In an interview, Jose Sialer Pasco, responsible of Sierra Sur program explains the importance of savings in rural areas of Peru.

Sierra Sur is funded in partnership with IFAD (International Fund for Agricultural Development) and the Peruvian government to develop economic activity in rural areas.
One side of the program is the promotion of formal savings and life insurance among rural unbanked women.

The Sierra Sur is based on the creation of women's groups brought together to receive financial incentives when they save (incentives when opening their account for each payment, withdrawing if it is used for education children, health spending or business investment).

The project also offers an affordable micro life insurance in which the payment is used to cover funeral expenses and / or a pension for a child's education.

This program therefore aims to improve women empowerment. According to a study, it was also shown that domestic violence against women who are involved in the program declined. Their image in society, their relationship with their husbands and children has changed. Sierra Sur is therefore a very powerful social tool.

Tourism has also been able to develop thanks to the non-financial part of the program, indeed residents of the area are encouraged to develop their cultural assets (crafts, dancing, singing) through training and competitions.

Saving money through the Sierra Sur program, women were able to create a financial historic allowing them to lend to financial institutions more easily.

You too can play a role in reducing poverty in some parts of the world with MicroWorld.
Here the list of Peruvian projects thanks to our partner Fondesurco.

Source: Youphil

Tags : microfinance, saving, microsaving, microinsurance, IFAD, MicroWorld, Peru, Sierra Sur, Social