SEWA Trade Facilitation CentreEmpowering women through traditional skillsEmpowering women through traditional skills

CSO Forum: World Bank Annual General Meeting

15th September 2006

The Self Employed Women’s Association (SEWA) The Self Employed Women’s Association (SEWA) “We Are Poor But So Many” “We Are Poor But So Many”

Empowerment

Livelihood Support

Direct Employment

Micro-finance

Health Care

Child Care

Nutrition

Education

Today, over 700,000 SEWA members both contribute and gain:

Evolution of SEWA: Need Driven and Evolution of SEWA: Need Driven and Demand Based GrowthDemand Based Growth

SEWA'S MEMBERSHIP GROWTH (1972-2003)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1972

1977

1982

1987

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

YEAR

ME

MB

ER

S

2001 Earthquake

Rural Expansion

Founded 1972 as labor union for informal sector

SEWA Bank Founded

SEWA’s Organizational StructureSEWA’s Organizational Structure

SEWA’S GoalsSEWA’S Goals

Self Reliance

Full Employment

From 1200 in 1972 to 800000

members in 2004 spread in 14

districts of Gujarat and 7 states

of India

From a union in 1972 to now 18

economic institutions including

the SEWA Trade Facilitation

Center

The Self Employed Women’s Association (SEWA) The Self Employed Women’s Association (SEWA)

Present Coverage: 3500 women artisans/ShareholdersPresent Coverage: 3500 women artisans/Shareholders

Planned coverage: 15000 women artisansPlanned coverage: 15000 women artisans

Main objectives: Promoting access to national and global markets to the women Main objectives: Promoting access to national and global markets to the women artisans in the informal sector. artisans in the informal sector.

The major services provided are:

A unique model for poverty alleviationA unique model for poverty alleviation

Marketing (National and International)

State-of art Manufacturing facility

Product development and design

Training and technical assistance

Business development services

Policy initiatives

Unique Model:poor artisans are the owners of their own company.

Designing, producing and marketing rural artisans’ handicrafts for the Designing, producing and marketing rural artisans’ handicrafts for the global market on a sustainable and scaleable basisglobal market on a sustainable and scaleable basis

SEWA TRADE FACILITATION CENTRESEWA TRADE FACILITATION CENTRE

STFC grew rapidly out of need for employment among earthquake affected artisans and their communities.

Post-earthquake scale of operations unsustainable under previous model.

After restructuring, STFC facilities, systems, staff and other resources now capable of expansion.

$0

$100,000

$200,000

$300,000

FY 2004 FY 2005 FY 2006

STFC Sales

Progress Achieved Progress Achieved

Achieved turnover : Rs. 50 million Achieved turnover : Rs. 50 million

Export share: 30%Export share: 30%

Total Employment Generated : 5000 artisans & 200 garment Total Employment Generated : 5000 artisans & 200 garment

workers. workers.

An average monthly income : Rs. 1500/- to Rs. 2000/-An average monthly income : Rs. 1500/- to Rs. 2000/-

STFC is now moving towards bringing in equity from joint venture partners in the private sectors.

Progress Achieved Progress Achieved

Set up a State – of – Art manufacturing infrastructure Vastralaya with Set up a State – of – Art manufacturing infrastructure Vastralaya with

a capacity of 500 pcs./day a capacity of 500 pcs./day

Integrated scattered production base across two districts of Kutch Integrated scattered production base across two districts of Kutch

and Patan with common facility centers.and Patan with common facility centers.

Created a cadre of Grass-root business managers to streamline the Created a cadre of Grass-root business managers to streamline the

entire production process and establish a robust supply chain entire production process and establish a robust supply chain

Provide market access and business development services to other Provide market access and business development services to other

grassroots artisans groups grassroots artisans groups

Constituted a core cell within the Ministry of Textiles to enable Constituted a core cell within the Ministry of Textiles to enable

formulate pro-poor policy. formulate pro-poor policy.

Progress Achieved Progress Achieved

Business partnerships with large retailers such as Fab India, Shoppers Business partnerships with large retailers such as Fab India, Shoppers

Stop, Trent – Westside, Arvind Mills and International Organizations like Stop, Trent – Westside, Arvind Mills and International Organizations like

Novica, Oxfam, Norm Thompson.Novica, Oxfam, Norm Thompson.

Established retail network with own stores in Ahmedabad and New Delhi.Established retail network with own stores in Ahmedabad and New Delhi.

Launched its brand “Launched its brand “HansibaHansiba” as a ‘Fair Trade’, ‘Hand Crafted’ Made in ” as a ‘Fair Trade’, ‘Hand Crafted’ Made in

India product. India product.

Technical Partnership with IFC, ICICI and EXIM Bank to evolve a Technical Partnership with IFC, ICICI and EXIM Bank to evolve a

sustainable business strategy. sustainable business strategy.

Important ImpactsImportant Impacts

Build a model market oriented Collective Enterprise owned by poor informal Build a model market oriented Collective Enterprise owned by poor informal

sector women workers.sector women workers.

Increased access to competitive Global Markets.Increased access to competitive Global Markets.

Sustainable livelihoods for over 10,000 rural women artisans.Sustainable livelihoods for over 10,000 rural women artisans.

Attain an export turnover of Rs. 200 million in 3 years.Attain an export turnover of Rs. 200 million in 3 years.

Empowerment of grassroots women workers Empowerment of grassroots women workers i.t.o. enabling them to understand the i.t.o. enabling them to understand the

changing global environment that influences their work and lives and assert their needs in this changing global environment that influences their work and lives and assert their needs in this

context.context.

Human Capital Benefits : Skill training and managerial capacity building of Human Capital Benefits : Skill training and managerial capacity building of

artisans.artisans.

Quality of Life Benefits: better education, health and social security at the Quality of Life Benefits: better education, health and social security at the

household level and at the work placehousehold level and at the work place

Trade for PoorTrade for Poor

Size and Organization

Market and Information and Access

Finance and Technology

Training and Skill up-gradation

Therefore Low Productivity and

Quality

Uneconomic scales of operation

resulting in lower returns

Difficulty in Marketing and

Products

Results in Low Income,

Powerlessness, lack of voice

Enable poor producers to become

owners and mangers of their

women enterprise

Provide sustainable employment/

alternative livelihoods

Federate groups into collectives

to strengthen bargaining power,

attaining economies of scale and

acquire competitiveness

Strong Linkages with mainstream

market systems

Major Barriers faced by poor grassroots Major Barriers faced by poor grassroots producers :producers :

Create Collective Enterprise to :Create Collective Enterprise to :

Women and Trade:Women and Trade:

• Adequate resource and trade links

• Investments in different sectors of market infrastructure

• Promotion to raise productivity, setting up multi skill develoment schools

• Adequate capital

• suitable market linkage• Better terms of trade

• Institutional facility to develop R & D for product development

• Information technology

• Build up organisational and managerial capacities

• Enabling effectiveness of policies

Recommendations:

• Formation of Trade Council

• Formation of Trade Security Fund

Recommendations:

• Formation of Trade Council:– To strengthen trade as means for poverty alleviation– Provide a platform to highlight the needs for trade

related infrastructures for the poor and women specially in the informal sector

– Build trade linkages between the formal and the informal

– Encourage the building of institutions that promote women and trade, help build micro-enterprises to provide work and employment security and access to market

Trade Council:

• Proposed Task: – Recommend investments and incentives based on trade

related needs– Would facilitate identifying various trades that would be taken

poor women with respect to globalization and open economics– Undertake research and studies to assess the contribution of

women in growing global trade– Determine needs in terms of infrastructure, technology, R & D– Identify global opportunities in global trade

Comprise of sector specialists, repres. Of grass-roots enterprises, civil society organsiations and repres. From govt and planning

commission

Formation of Trade Security Fund:

• For providing access to fund and investment• To meet the identified needs• To build producer owned enterprises, developing

trade supportive infrastructure• Provide relevant trainings and market linkages

THANK YOUTHANK YOU