6 Ways Banmujer is Fighting Gender Inequality in Venezuela | The Borgen Project

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In Venezuela, like other conservative countries, women have often been viewed as the weaker sex, creating vast gender inequalities. In the past few decades, the country has faced severe political turmoil and women have shouldered the brunt of the force. The coronavirus pandemic has exposed the extent of gender inequality, as Venezuelan women must rely on their partners for financial support – those same partners from whom many women face domestic violence. Thankfully, there are many resources for Venezuelan women to turn to, including the Women’s Development Bank, abbreviated Banmujer, the only state-owned women’s bank in the world. Here are six ways that Banmujer is addressing gender inequality in Venezuela.

Six Ways Banmujer is Aiding Women

  1. For women, by women – The Venezuelan Women’s Development Bank was created in 2001 to help empower women by ensuring financial stability independent from their partners. Banmujer supports female entrepreneurs by only providing loans to women, promoting financial independence, creativity and innovation. In addition, the organization employs women who travel to rural communities to develop female-led business proposals instead of having regional offices. This makes it extremely easy for women all over the country to apply for a loan.
  2. More than just a bank – Not only does the bank provide loans, but it also provides training and education to women. The organization teaches women how to develop an entrepreneurial idea, efficiently use the loan and manage a business. Extending their efforts even further, the bank hosts workshops on women’s health, prevention of domestic violence, community leadership, legal advice and more.
  3. Real and long-lasting change – The bank is fighting gender inequality in Venezuela by offering small loans to groups of women with business ideas and has trained over 100,000 women. Many women have benefited from these small loans and each story is unique. The Guardian highlights one such success story. Matild Calixte used to work at a hair salon earning well below the price of a haircut. She even had to take on a second job to provide for her family. With the help of the Women’s Development Bank, Calixte was able to open her own hair salon and equally split the income with the other hairstylists. Because of this, she has achieved financial stability and can now afford to send her daughter to college.
  4. Making it easy – Most of the world’s property owners are men. It is easier for men to be approved for loans – they have collateral to secure them. When the idea of a women’s bank was proposed by Nora Castañeda, Banmujer’s original president, she made it a priority to allow women with no financial assets to be included in the loans. This alone is absolutely revolutionary in the gender equality movement. In addition, when women successfully pay back their loans, they can take out another loan worth one and a half times their previous one. Monthly interest rates are also fixed at a low rate of 1% which makes getting a loan even more attainable.
  5. Creating a caring economy – The Women’s Development Bank doesn’t solely measure success by financial profits, but societal ones. While there has been criticism of high default rates in the bank’s earlier years, it should not be defined in purely economic terms. Banmujer focuses on the progress being made to address gender inequality in Venezuela. Castañeda explains that “we are creating…an economy at the service of human beings, not human beings at the service of the economy.” The bank cares more about helping Venezuelan women than it does about making a profit.
  6. Helpful for the whole economy – Banmujer recognizes that fighting gender inequality in Venezuela by empowering women means reducing poverty. Close to 45% of Venezuelans live in poverty, and 70% of those are women. However, the loans have created over 70,000 jobs. By empowering women to reach financial independence, it stimulates the economy.
Banmujer has had an incredible influence on more than 100,000 women, effectively addressing gender inequality in Venezuela. By giving small loans, the program encourages entrepreneurial ideas and financial independence. The loans are meant to spur collaboration between women, not competition. The president of the bank made sure to focus program efforts on lifting women out of poverty and empowering them to start their own businesses.

– Karin Filipova
Photo: Banmujer CA

This post was originally posted on Venezuela – The Borgen Project – View Original Article

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