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The Political economy of Sex
workers Cooperative
Dr. Smarajit Jana
Principal, Sonagachi Research Training Institute
Email: [email protected]
URL: www.durbar.org
Presented at University of Pennsylvania
14th April, 2011
Scope of this presentationScope of this presentation
1) What is USHA?
2) Historical background.
3) The Genesis of USHA
4) Establishing the political identity of USHA
5) Goal & Objective of USHA
6) Achievements
• A cooperative society for and by the sex workers.
•Is the largest sex workers run financial institution in Asia [owned and managed by the sex workers collective]
• Is the financial institution with one of the best recovery rate in the state of West Bengal, India (>90%)
• Has the largest condom social marketing reach for any community-managed organization in the country. (Sells 3.5 million pieces of condom/annum.
• Currently has a membership of 16228 sex workers.
• Has an annual turnover of 2.7 million USD.
•USHA’s capital asset is more than one million USD.
• Around four to five thousands member receive loan/annum.
What is USHA?
The journey begins in the era of HIV epidemic
• A Peer Based HIV prevention program was initiated in a red light district called Sonagachi in Kolkata, India, during 1992 following standard components of interventions (eg. BCC, STI & Condom promotion)
- However within a short span of time based on the identified challenges Sonagachi developed a new programming approaches and carve out a unique community led intervention.
DMSC came into existence in 1995As a fallout effect of this intervention program, sex workers got inspired and felt the necessity to collectivize themselves to build their solidarity and to raise issues which are pertinent to their life and occupation.
Challenges as identified
Attitude and practices of the service provider:1)Society at large and policy makers in particular are reluctant to respect her entitlement2)Violation of basic rights of sex worker is a ‘nonissue’3)Inability to access social/judicial redressal systems and mechanism (even when her basic rights are violated) due to very social and legal status of sex worker
Identified structural barriers in HIV intervention Program
• Women in sex trade has very little power to negotiate
• Financial insecurity further compromises her ability to enforce safer sex.
• Stigma and discriminatory practices from service providers.
The history behind the development of the cooperative
What was the Financial state of affairs in red light districts?
How sex workers were treated even by the financial institutions?
• Couldn’t open bank accounts as they were unable to produce any documents in support of their identity. (e.g. Rent receipt, Electricity Bill or Telephone Bill)
•Law of the land (ITPA act) prohibited women to hire rooms to run their occupation as a result of which they couldn’t possess any valid document.
• At points they were asked to bring their husband to open bank account.
• They were often ridiculed by the bank employees the moment they could spot them as sex workers.
Why sex workers were denied access to financial Institution
• Majority of them use to put their money in unauthorized financial institutions (e.g. chit funds) or keep their money with their Madam.
• On enquiry we found that 99% of them have been cheated by those agencies at least once.
• Whatever money they could keep with them was usually taken away by their Babus (lover).
• Snatching of money by the rowdies, police was a common phenomena.
• Some of them stopped saving anything even for the next day. They spent everything they earned on the very day.
Story of financial mismanagement
In case of any exigencies they had to depend on a category of money lenders who used to visit red light districts regularly.
These money lenders are individuals who are not linked with any financial institution. They developed various kinds of “lending deals”. However the minimum rate of interest on any such deal when calculated comes nearer to 300% per annum.
Money lending mechanism in Red Light Districts
Gradual reduction in income from the sex trade with growing age
Usually no sustainable savings and debts to be paid
No marketable skills to generate income from other sources
Increase of health-related expenses with increasing age
Side by side they had to support their growing children.
The financial insecurity leading to Plight of aged sex workers
Lack of control over money & lack of economic stability compromises her ability to negotiate with the clients for safer sex.
Less condom use leading to repeated STI’s & possibilities of getting HIV increased.
Once infected sex workers had to spend huge sum of money to buy health care services to treat infection primarily from the private health care sector and taking loan from the moneylenders.
Linkages between economic instability & HIV infection
The vicious cycle
After series of debate & discussion held among the sex workers, following guiding principle was articulated by themselves to built a financial institution to ensure economic security.
It should be exclusively of and for the sex workers community.
The underlying factors what prevent them in accessing financial support has to be addressed.
Community members should be in the policy making bodies of the finance management mechanism.
Communities’ needs and priorities would be respected while creating and managing a financial institution.
Genesis of USHA
Out of few options (opening bank account, engaging with life insurance company, initiating microcredit or cooperative venture etc.)
They decided to start their own cooperative society.
However Govt. Policy and legislative practices prevented them to open their cooperative as they are considered as immoral human being.
However this does not deter them rather they accept this challenge and mobilize large number of sex workers to break the barrier.
Choosing the right option
Sex workers engaged into a unique
discourse….. Of morality and immorality
At last Minister in charge gave in. He accepted their demand and took initiative to change the specific clause of the act giving birth to USHA
Usha is run by a Board of nine directors (all are sex workers).
They are elected through a process of two tier electoral system.
In the first phase all members elect their 45 representatives through casting their secret ballots
The elected representatives then elect the Board members who would run the office for a period of 3 years.
No Board member can hold office more than two terms.
The Management Structure of USHA
Staff recruitment Policy: Priority is given to the sex workers and the girl child of the sex workers for all vacant positions.
Loan disbursement policy: Priority is given to the need of the poorest section of the community. The Board of directors often try to develop appropriate mechanism for loan repayment not withholding disbursement of loan.
Flexible working Hours: Looking from the perspective of sex trade, USHA has developed office & field based working schedule and different scheme suited to the interest of the community.
COMMUNITY LED OPERATION GUIDELINES OF USHAThey are 47 employees of USHA and the male female ratio (M:F= 1:2)
The Goal of USHA
• To enable sex workers to become financially secure.
• To establish workers rights & social recognition of sex worker.
• To ensure education and career building opportunities for their children.
• Usha function as a credit cooperative and give loans to members
• Social marketing of condoms to various organizations who run STD/HIV intervention programs or other reproductive health programs.
• To develop self-employment schemes for sex workers. (Provide vocational training and establish market linkages for community members)
Services provided through USHA
USHA makes profit primarily from business venture (but with a social cause)
1) Agriculture : Organic farming
2) Pisciculture : To protect bio diversity
3) Provide eco-friendly event management services.
Usha Multi Purpose Cooperative Ltd.Income Generation
Car on Rent - 2001
Stationery Supply 2001
Train and Air ticket booking - 2001
Organic farming2003
Kantha Embroidery Work - 2005
Investment in Co op. Bank - 1995
Cosmetics Selling - 2005
Building Rentals - 2000
Soc. Mkt of Condoms - 1997
Marketing of Sanitary Napkins - 2004
Income Generation through Marketing Section
USHA’s Commitment to USHA’s Commitment to CommunityCommunity
Provide financial support for various activities to enable and empower sex workers and their family members. (Capacity building and social activism)
Create educational opportunities for the children of sex workers.
Support HIV positive women.
Provide ART treatment and food supplement.
The Collective decision making process
USHA being a part of the political struggle of the sex workers community is a member of the joint policy making forum of the sex workers. The steering committee of Durbar includes other wings of sex workers collective namely DMSC, Amra Padatik, Komal Gandhar & Sathi Sangathan in addition to USHA.
This forum address any sort of conflict of interest or stress between the financial management system & the political interest of the community.
This inclusive decision making system so far has succeeded in coordinating and spearheading the sex workers movement through building complimentarity between different wings of sex workers collective.
94 104
214
483 18
01
2219 2712
4771 59
01 7242 80
84 1001
6
1027
8 1328
3 1626
8
02000400060008000
1000012000140001600018000
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2009-2010
2010-2011
Num
ber o
f mem
bers
Year
The growth of USHA Multipurpose Cooperative Society Ltd
0 0.01 8 10 1362 96 115
180250
350
446 450
675725
850
0
100
200
300
400
500
600
700
800
900
Year 1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2009-2010
2010-2011
Wo
rkin
g C
apit
al
Year
Year wise Breakup Growth of Working Capital (Lacs of Rs.) of Usha Multipurpose Cooperative Soceity Ltd.
Political Success of USHA• Now more than a dozon of major financial institutions which includes Banks, Insurance company etc. are approaching tosex workers and offering their support.
• Sex workers collective has put a term that they have to registered their occupation as sex workers before they would open their account.
• Other marginalized communities including sex workers collectives in the country has emulated the same practice through hiring the expertise of USHA.
•USHA has become the member of Federation of National Cooperative Union (The policy making body of the cooperative societies in the country)
Future Plans for
USHATraining Institute &
Guest House
Manufacturing of Sanitary Napkins
Low cost Housing
Medicine Shop
Beauty Parlor
Old age home for the sex workers
Development of the sports complex
THANK THANK YOUYOU