"Investing in people in Chiapas (Mexico), Guatemala and Honduras"

August 1999

Honduras
Chiapas, Mexico
Guatemala

Dear friends,

This is an edited version of a diary I kept during a July 12-28 trip to visit projects that Rights Action (RA) funds in Chiapas, Guatemala and Honduras. With offices in Guatemala City, Washington DC and (July 2000) Toronto, RA raises funds to support some 50 grassroots organizations in the region, indicated below with (*).

Clearly, economic, political and military factors -- at national and international levels -- continue to align themselves against the basic needs and human rights of a majority of the populations. Through it all, courageous and serious people throughout the region pool their skills and resources to address and remedy the myriad of obstacles and injustices they confront.

Our thinking is that we are investing money and other resources in the work of people who have been historically discriminated, impoverished or oppressed, and who are now protagonists -- leading their own struggles to end poverty and gain respect for all their rights. Our conclusion is that these "investments" are almost always well returned - the people and organizations we support do extraordinary work, a pesar de todo (despite everything).

If you have comments or questions about our work, and/or if you would like to make financial contributions to this work, please contact myself. Please copy and distribute this report to interested people.

Thank-you.

Grahame Russell
Director, Rights Action
T: 202-783-1123
E: info@rightsaction.org
W: www.rightsaction.org

HONDURAS

Honduras never had the levels of repression that wreaked havoc in Guatemala; hundreds were killed and disappeared in the 1980s. Then again, Honduras is the poorest country in Central America. In the 1980s, the United States had 14 military bases throughout the country, from where the US Army and CIA operated "to stem the red tide of communism". What the US actually did was prop up repressive militaries and oligarchies.

Since 1990, the International Monetary Fund (backed by the World and Inter-American Development Banks) has obliged the Honduran government to implement SAPs ("Structural Adjustment Programs"). Levels of poverty have increased every year since then, as have the fortunes of the wealthy. Meanwhile, the stated goals of the Saps (pay off even the interest on the foreign debt; control inflation; balance the government's budget; etc.) have not been achieved.

It was in this context that hurricane Mitch hit the country in October 1998. Honduras will never recover from Mitch. 15,000 people were killed or disappeared. Uncountable numbers have since been killed: diarrhea, malnutrition, childbirth complications, cholera, etc. - easily preventable deaths, in most cases, in healthy and just societies. It is poverty that killed so many people last fall, that kills so many on a daily basis. Hurricane Mitch was a reminder of how unjust this country is, how unjust the imposed Saps are, how unjust the world order of countries is.

'Desde el Mitch'

"Desde El Mitch" (since Hurricane Mitch), the Asociacion ANDAR (*) has carried out projects to minimize the suffering, to rebuild communities so that the inhabitants no longer live in such vulnerable conditions, waiting for the next torrential rains to wash them down river, cover them with mud.

News item: The Camara de Comercio e Industria (Chamber of Business and Industry) is fighting against raising the minimum wage from $2\ day to $2.50\ day, arguing that this will lead to inflation.

On a community to community basis, ANDAR works over a number of years to design and implement development projects that allow the communities to take more control over their lives and destinies. These projects include components of education, health, training and economic production.

Of candles & gender violence

A revolving "small business" loan fund is one solution that the Population Development Association (Asociacion del Desarrollo de la Poblacion *) has been operating desde El Mitch. Access to credit, like just about anything else, is next to impossible for the poor. They wouldn't be let into a bank where the rates are 20-24%, and the prestamistas (neighborhood loan sharks) charge close to 30%. One would rather owe money to the devil.

With a starting capital of $5000, ADP has made loans to over 150 women, most single, most of whom lost their shacks and few possessions to Mitch. No public or private insurance policies for the poor; not much to insure. Most loans are in the order of 2000 Lempira ($150) or less.

Many of the women are now on their second loans, having successfully repaid the 1st, including a 2.5%\ month interest rate. At this point, less than 20% of the women are in arrears - an incredible repayment rate for people who lost everything, and have received little to nothing from the government or the official international development community.

With other startup funds, ADP has initiated a candle-making business that is already the pride of the women who are involved in its design and construction. These women are victims of Mitch and\or domestic violence staying ADP's home for battered women. Once operating, the candle-making project will reinvest profits into the business, into the women's shelter, and into the capital base of the revolving loan fund.

Honduras
Chiapas, Mexico
Guatemala