Julieta Castellanos Receives Women of Courage Award

Photo courtesy of La Prensa

Last Friday, Adelante celebrated International Women’s Day with our female main office staff and a group of ceibeña women looking to become more active in promoting economic empowerment among all Honduran women. While we enjoyed our own productive gathering, Julieta Castellanos was visiting the US to receive a Women of Courage Award from US Secretary of State John Kerry and First Lady Michelle Obama. She was among nine recipients from around the world to receive this award, and the only Latin American. The other courageous women hail from Afghanistan, Nigeria, Russia, Somalia, China, Syria, Vietnam and India (1).

Castellanos is the Rector of the Universidad Nacional Autónoma de Honduras (National Autonomous University of Honduras) and suffered the loss of her 22 year old son at the hands of Honduras’ national police in October 2011. Her son was kidnapped and then murdered in Honduras’ capital city of Tegucigalpa (2). Rather than allowing the tragic death of her son to defeat her, she has risen up further to promote human rights across the country. She continues to speak out against corruption, drug trafficking and Honduras’ high murder rates (1). Last year, Julieta Castellanos was also the recipient of the annual Martin Luther King Jr Award presented by US Ambassador Lisa Kubiske during an event sponsored by the Martin Luther King Jr Foundation and the Instituto Hondureño de Cultura Interamericana. The award recognized her for her work fighting for the “social and democratic rights of the Honduran people” (3).

During the ceremony, John Kerry made an argument that Adelante continues to promote everyday, “Women’s issues, as we know, are more than just women’s issues. They are families’ issues, they are economic issues, they are security issues, they are justice issues” (1). The impact that loans and education have on our clients reach beyond the women themselves, to their families and communities.

Adelante’s work to empower women has a ripple effect: economic opportunities for women offer their families a source of income within their own rural communities to deter migration into urban areas or the US. Often when I speak with the women who have been clients with Adelante for several loan cycles, they are proud of the confidence and self-esteem gained from their improved living conditions and the education received. The improved self-esteem is also often passed on to their daughters and granddaughters, impacting generations to come.

As Adelante continues to work in terms of economic empowerment, we value the importance of Julieta Castellano’s contributions to promote basic human rights throughout the country. To watch the full award ceremony and learn about the work of other Women of Courage, click here: http://www.c-span.org/Events/State-Department-Hosts-Women-of-Courage-Awards/10737438660/.

(1) <http://www.c-span.org/Events/State-Department-Hosts-Women-of-Courage-Awards/10737438660/&gt; March 8, 2013.

(2) Michael Solis. “Castellanos Speaks of Youth’s Dismal Reality”. <http://hondurasweekly.com/201206255480/International/5480-castellanos-speaks-of-youths-dismal-reality.html&gt; June 25, 2012

(3) <http://honduras.usembassy.gov/pr-042012-eng.html&gt; April 20, 2012.

Discord & Human Rights Violations in Bajo Aguan

African Palm Plantation, Colon

International press has recently brought attention to the agrarian conflict in an area known as Bajo Aguan, which is in the Honduran department of Colon.  The Adelante Foundation team has received inquiries from our generous supporters about the on-going land crisis.  For this reason, we would like to take this opportunity to inform our followers about the discord and human rights violations taking place in Bajo Aguan.

The conflict involves a land dispute between peasant farmers and wealthy landowners.  Peasant groups are occupying African palm plantations that they believe belong to them, arguing that the land was illegally sold to wealthy landowners in the 1990s.  Over the last two years, dozens of people have died, many of those killed were peasant farmers who reclaimed their lands as part of the movement.

In recent months, CNN and the New York Times have published articles on the violence in Bajo Aguan, and international organizations have been recognizing human rights violations since the conflict erupted.  A fact finding mission to Bajo Aguan, undertaken by several international organizations, documented the repressive tactics aimed to quell peasant movements, from intimidation to murder.  The director of Human Rights Watch released a statement calling on the Honduran government to conduct an impartial investigation into the killings of peasant farmers.  Amnesty International urged its supporters to take action against the forceful eviction of peasants.  These and other organizations are concerned about the state’s failure to protect its citizens in Bajo Aguan, and they criticize the Honduran government for not developing a comprehensive resolution to the dispute.

Photo credit La Prensa Honduras

The Adelante Foundation’s branch office in Tocoa serves the department of Colon with microcredit, which contributes to poverty alleviation in rural Honduras.   Clients from Bajo Aguan have been affected by the persistent tension in the area.  The main problem cited by our clients is the general climate of insecurity, which encourages delinquency and petty crime.  Women face a greater risk venturing out to sell their products, and the recent instability has impacted their small business sales.  Under the current circumstances, many people are reluctant to leave their immediate neighborhoods. President Lobo has escalated military and police presence in Bajo Aguan, stationing personnel permanently in order to maintain security. An Adelante Foundation client admitted that the military occupation is not a solution to the land conflict, a sentiment presumably shared by many residents of Bajo Aguan.

The current land dispute has its roots in the 1970s, when the Honduran government launched an agrarian reform campaign, redistributing lands to various peasant cooperative associations in Colon department.  In the early 1990s, these lands were sold to wealthy landowners eager to expand African Palm cultivation.  Dinant Corporation is the most prominent actor in the dispute, with over 22 000 acres of African Palm plantations, which is over one fifth of the agricultural lands in Bajo Aguan(1).  African Palms are cultivated in order to produce palm oil, which is exported as a biofuel and also used in the production of numerous household products and processed foods.

Photo credit Norwegian People's Aid

Peasants claim that the lands in question were illegally sold, an assertion supported in a report published by an International Observation Mission, which documented  human rights abuses in Bajo Aguan.  The most notable peasant group to have emerged is MUCA (Movimiento Unificado del Aguan or the Unified Peasant Movement of Aguan), which is demanding land sales from the 1990s be voided. Prior to the coup that ousted Manuel Zelaya in June 2009, an agreement was negotiated in an attempt to resolve the agrarian conflict.  Following the coup, the agreement was never enacted by the interim government or by President Lobo’s newly elected government.  MUCA aimed to pressure the Lobo administration by undertaking land invasions of selected plantations in Bajo Aguan.  These actions have sparked a wave of violence against the peasant movements, and since President Lobo was elected, over 40 peasant farmers have been killed, and several others, including private security forces, police, military, and innocent bystanders have lost their lives in Bajo Aguan(2).

In September 2011, the National Congress of Honduras approved a deal that attempts to resolve the discord.  The state will buy land from Dinant Corporation, allowing members of two peasant groups to purchase land with state guaranteed bank loans.  Dinant Corporation is expected to earn 546 million Honduran lempiras (or nearly $29 million) from the state’s land purchase, if the transaction occurs this coming January(3).  However, other peasant groups claiming lands have been left out of these negotiations.  Furthermore, the militarization of Bajo Aguan is of great concern given the documented collaboration between state security forces and private guards in repressing the peasant movements(4).  No arrests have been made for the murders of peasant farmers, extending impunity to perpetrators of violence. Last month, a human rights observatory was permanently established in Tocoa in order to document on-going human rights abuses in the area.  Hopefully, the mounting international attention on human rights violations will push the Lobo administration to confront these injustices.

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(1)Malkin, Elizabeth. ¨In Honduras, Land Struggles Highlight Post Coup Polarization¨ New York Times.  Sept. 15 2011.

(2)¨Honduras: Investigate Killings of Peasants¨. Human Rights Watch.  Sept. 9 2011.

(3)¨Inauguran observatorio de DD HH en Bajo Aguan¨ El Heraldo. Nov. 15 2011.

(4)International Observers Mission. ¨Honduras: Human Rights Violations in Bajo Aguan¨ International Fact Finding Mission.  July 2011.

Microfinance Under Fire

Published March 21st, 2011 in the New York Times’ social change blog “Fixes”

Muhammad Yunus, center, outside the high court building in Dhaka, Bangladesh, on March 6 where he contested the government’s decision to remove him from his post in Grameen Bank.

At Fixes, our focus is typically on implementing new or underutilized ideas to help those in need. But sometimes it’s just as important to protect institutions that are already working well. Which is why I’m writing today about the Grameen Bank, the Bangladeshi organization that won the 2006 Nobel Peace Prize, along with its founder Muhammad Yunus, for its work extending microloans to some of the world’s poorest, and has been crucial in global efforts to lift millions of people out of poverty.

Both the bank and Yunus, have come under attack by the government of Bangladesh and its prime minister, Sheikh Hasina Wazed. It has taken 35 years of painstaking effort to build Grameen into a world-class institution that serves millions of poor people. That progress could be lost if the country’s leaders fail to appreciate what makes the Grameen Bank work.

Anyone who cares about international development, microfinance or social entrepreneurship should pay attention. The Grameen Bank is not just the largest microlender in the world, with 8.4 million borrowers (most of them women villagers) who received more than $1 billion in loans last year, it is the flagship enterprise in an industry that, in 2009, served 128 million of the world’s poorest families. It is also a leading example and inspiration for millions of citizen-led organizations that have been established in recent decades to address social problems that governments have failed to solve.

Yunus, the founder of the bank, is an entrepreneurial figure cut from the same cloth as Steve Jobs, the founder of Apple. He has devoted himself since the 1970s to demonstrating, institutionalizing and spreading microfinance. Recently, the government issued ordersthat Yunus is to be removed from his post as managing director of the bank. Yunus has taken the case to Bangladesh’s Supreme Court.

Government officials initially seized on a Norwegian documentary that accused Yunus of improperly diverting funds in 1996 that had been donated by the country’s aid agency. The Norwegian government investigated and found that, while funds were transferred internally from one Grameen-owned affiliate to another, there was no indication that the funds were misused. Since then, government officials have engaged in attacks against Yunus and challenged the work of all microlenders in Bangladesh.

Legally, the government owns 25 percent of Grameen and has the right to appoint a quarter of its board members, including its chairperson. In practical terms, however, the government has little justification to intercede in the bank’s operations. Today, of the Grameen Bank’s paid-up share capital, only 3.5 percent comes from the Bangladeshi government. It is the bank’s borrowers who are its majority owners. They control 75 percent of the board seats and they have supplied 96.5 percent of the paid up share capital. And it’s the savings of villagers — about $1.5 billion — that now finances the bank’s activities and growth.

Nevertheless, the government is proceeding to remove Yunus against the objections of its majority owners and will probably succeed. The stated reason is hollow: Yunus, who is 70, is over the mandatory retirement age in government banks.

A Year After Elections in Honduras…

Even though North America is made up of the longest-lasting democratic republic and a parliamentary commonwealth with an outstanding welfare state, Central and South America have been a totally different story. For almost two hundred years, the region has been plagued by irregular transfers of power and military rule.  While it has been three decades since the advent of total democratic rule, democracy has not eased the rule of law; often, both institutions and people resort to force to solve political disagreements. Without clearly defined impeachment processes and effective justice systems, in Latin America ineffective or corrupt presidents can be forced to resign by a popular rebellion on the streets or be arrested by a military or police power without the opportunity of a fair trial. The latest acute example of irregular transfers of power is in a little country in the center of the Western hemisphere called Honduras.

On the left Zelaya and on the right Michelleti

Exactly a year ago, Honduras was in the middle of a political crisis after President Zelaya was ousted on June 28, 2009, and Michelleti was named the new president of Honduras. After the whole international community condemned this act and called it a coup d’etat, Honduras was isolated from the rest of the world, greatly impacting foreign investment, the tourism industry and the economy in general.  On November 29, 2009, general elections were to be held as an attempt to put an end to this crisis. The Liberal Party (to which both Zelaya and Michelleti belong) was completely divided and, as a result, the elections were won by the National Party candidate, Porfirio Lobo Sosa. The results of these elections were eventually accepted by most countries and Lobo Sosa took his place as the president of Honduras on January 27, 2010.

Since then, Honduras has only taken baby steps in reinstating its democratic process. This democratic baby, unfortunately, started limping and falling down at the same time it tried to start running.  The 1982 Constitution does not reflect the real needs of the Honduran people and often panders to selfish interests and yet there have not been any attempts to review and improve it. In addition, those who committed human rights violations, political prosecutions and various assassinations have yet to be tried and punished for their crimes.

As politicians fight over who was right and who was not, who needs to be tried and by whom, and the future of the political arena of Honduras, the Honduran people are the ones suffering.  Zelaya currently lives in a luxurious resort in the Dominican Republic and receives an $8,000 monthly check for his job at the Central American Integration System (SICA) Congress.  Michelleti is permanently escorted by about eight bodyguards and lives in a luxurious mansion in El Progresso. While these former leaders sit in their mansions with air conditioners and private cooks, more than half of the Honduran population lives in poverty.  After this political crisis, the world economic recession, the earthquake last May, the decline in remittances sent from family members in the U.S., and a drought that affected the entire region, the Honduran economy has experienced a fast decline.

Two children in one of the most impoverished communities in Intibuca

According to the latest report on the Millennium Development Goals that was presented last week by the United Nations Development Program (UNDP) and the Honduran government, the social indicators of unemployment rates, distribution of wealth, and population living in poverty have significantly worsened. Currently, 60% of the Honduran population lives in under the national poverty line of $2 a day and 39% lives in extreme poverty, which means that their monthly income is insufficient to cover the cost of the most basic living necessities.  Not only is Honduras the second poorest country in the region, second to Haiti, it is also one of the most disparate. According to this report, Honduras is the fourth country, after Brazil, Mexico and Nicaragua, with the most unequal distribution of wealth – the top 40% of the population holds 81.31% of the wealth, while the lowest 40% holds only 7.46%. Unemployment has also risen dramatically. While in 2009 the unemployment rate was 27.8%, the current rate is 36%.

A year after the most watched elections of recent times, the situation has worsened. Lobo Sosa has not yet signed an agreement with IMF and the fiscal budget has an enormous deficit. Honduras continues to be excluded from the Organization of American States (OAS). As a result of the widespread poverty affecting Honduras and the lack of employment opportunities, the crime rates have skyrocketed and more people are resortingdrug trafficking or other associated jobs.  Currently, the work of nonprofit organizations and other international cooperation institutions is more important than ever.   Adelante Foundation continues to work to provide opportunity to the Honduran people during these extremely challenging times.

By: Marcela Reyes

Cartoon from a local newspaper

A world of extreme poverty

As an invited volunteer of Fundación Adelante, I was welcomed to a world only before imagined in my wildest fantasies. A world of extreme poverty, adverse conditions, and improbable odds met me head on as I stepped into the field to conduct research of social impact of Adelante’s micro-credit loans. I had seen this before many times in my experiences living in Colombia and conducting research in other Central American nations, but one notable aspect differed in this scenario than any other. There existed, in Adelante’s clients, a sense of pride, hope, and potential for financial independence on their own terms.

Seeing the women of Adelante’s communal loan groups come together gave me an insider’s look on the efforts of Adelante and other micro-credit institutions in the area to mitigate poverty in many areas of Honduras by empowering women to run their own successful micro-enterprises through business education practices and through availability of credit, affording a hand – not a hand-out – to needy women in the nation. While the true impacts of the loans made by this foundation have not yet been able to be measured in statistical terms, it seems evident that the women involved in this organization are afforded a grasp of independence through hard work and collaboration.

It was particularly exciting to see local Hondurans employed by Adelante acting as loan officers in the rural and semi-rural settings, holding their compatriates accountable for their financial debts, educational obligations, and responsibility to the other women in the collaborative. Unlike many pro-poor organizations, one rarely sees marginalized peoples held to such a high standard of conduct, which only serves to embolden the mission of Adelante.

From an outsider’s perspective, the organization, dedication, and inspiration of the local marginalized women and Adelante staff, seems to serve many steps necessary to mitigate extreme poverty in the world’s most underdeveloped nations. I look forward to the coming years as Adelante and other micro-credit institutions further their reach throughout Latin-America, uprooting a higher proportion of its poor to reach independence and financial stability through micro-lending efforts.

Additionally, I am excited to see tangible evidence of Adelante’s efforts, as quantitative statistical data is collected and analyzed within the organization through systems I put in place, as was the initial purpose of my visit. Hopefully, Adelante’s efforts will be shown through positive gains in development indicators as it tracks its clients through various loan cycles.

Marc Mitchell, in blue, at an assembly in Jutiapa, Atlantida

By: Marc Mitchell

Working to Make Ends Meet: Adelante Women Speak Up about the Current Crisis

By Sophia Anderson & Desirae Wrathall

When asked about her political perspective, Azucena Garcia states, “If Mel brings peace, let him come, if Micheletti brings peace, let him stay.” Azucena does not care who stays in office, she just wants the crisis to end and life to go back to normal. Julia Ramirez, sells cosmetics, but says that right now nobody is buying. People want to keep their money rather than spend it because they do not know what is going to happen next.

On Monday, September 21st, deposed president, Manual Zelaya, shocked the country when he snuck back in and took up residence in the Brazilian embassy. Almost immediately, chaos ensued as the acting government issued a nationwide curfew less than an hour before it was set to go into effect. Shopping cart jams formed in the supermarkets and traffic jams in the streets. The initial curfew lasted forty hours and shut down the country for almost two full work days. Interim president, Roberto Micheletti, lifted the curfew at 10:00 a.m. on Wednesday after widespread concern was expressed, but nationwide evening curfews have continued since, interfering with commerce and transportation. Protests, primarily in the capital of Tegucigalpa, have resulted in violence and vandalism. Conflicting media information and varying rumors have caused fear and confusion. For a better sense of the reality of the situation, we spoke directly with clients to hear their personal perspective.

At the Miramar assembly meeting in La Ceiba, six women gather together on a shaded front porch. Irma Garcia, the Adelante credit officer starts out the meeting by saying “Welcome compañeras, thank you for being here today. Things have been tough, there are troubling events happening around us, but we are alive and well, and will keep moving forward.” All nod in agreement. After initial business is taken care of and an educational lesson given on “Domestic Violence”, the subject of the group discussion changes to the current crisis, and the participants give their personal accounts:

Devlin Posadas sells baleadas (a typical Honduran food, consisting of a flour tortilla filled with beans and cheese). She sells them in the street, at the billiard halls, and to some established clients. Last week, she made a hundred baleadas, a reasonable amount based on what she usually sells. But nobody wanted to buy even one baleada because they did not have any money nor would they buy on credit because they didn’t know when they would have any money. Devlin also works occasionally as a mariscera (a person who cleans seafood for export). There has not been any work lately because no boats have been coming in to port. Her husband works as a waiter at a hotel restaurant. Due to the curfew, he is not making his usual salary, but being paid hourly when the restaurant is open. His employer has even insisted that he come to work despite the curfew because the hotel had clients. Consequently, as there was no public transportation available, he had to walk all the way there – an hour journey – while avoiding the police and the fear of being caught and thrown in jail.

The assembly members discussed solutions to the crisis, primarily to hold the upcoming November elections and democratically elect a new individual to office. While Devlin nods in agreement, she says, “No voy a votar. I’m not going to vote. Even though I have always voted in the past, I am disillusioned by the whole situation. Mel was elected by the people and they took him out, so what’s to stop them from doing it all over again? The police would have to make me vote. Otherwise, I’m not going to bother.”

Besy Barahona sells food items and Avon products. Right now her business is doing poorly. She often sells her Avon products on credit, but right now people just do not want to take the chance. If they have a little extra money, they prefer to hold on to it because they never know when they might need it. They are also trying to keep their cash on hand since they don’t know when a curfew might go into effect and they would not be able to get to the bank. Besy says, “People have cut the luxuries; they don’t have any extra money to spend.”

Julissa Posadas makes packaged lunches and sells them to the workers at restaurants like Pizza Hut and KFC, but right now nobody is buying. Usually the workers like some variety as they get bored of eating pizza or chicken all the time, but right now they do not care – they just want to save money so they are just eating whatever the restaurants give them.

Azucena Garcia has a small caseta (snack food shop) in her house. She sells foods like baleadas, pastelitos (meat pies), and sodas. The majority of her clients are students on their way to and from school. With all the curfews and cancelled classes her businesses has dropped dramatically. Lately she has been making about L.24 ($1.27) per day. She says that right now people are saving money by eating at home. They are not spending on luxuries. “Hay que tener paciencia porque las cosas van a mejorar. You have to have patience because things will get better”, Azucena says. She has a lot of faith in God and she feels optimistic that this crisis is temporary and things are going to improve.

The group speaks in general about their desire for the situation to end, and for their kids to be back in school – classes have been sporadic – as public school children have basically missed three months of classes. Some feel that local crime has increased as the police focus on the political situation. They also humorously predict that due to the curfew, there will be a baby boom nine months from now.

Regardless of the politics, it is with your help that the Adelante Foundation continues to serve these women in a very difficult time in Honduran history. Thank you for your continued support.

Honduras: Politicians in Gridlock, but Adelante Foundation Continues Forward

Sign reads: "The Road to Understanding", highlighting the complexity and frustration of the politicial battle in Honduras. (Cartoon taken from online newspaper LaPrensa.Hn)

The political crisis in Honduras stands at an impasse. The interim Honduran government has not accepted proposals by the international community because every proposal demands reinstating deposed president Mel Zelaya. As talks continue to fail, Honduras begins to feel the sting of international sanctions. The United States had already suspended roughly $35 million in government and military assistance and has now suspended tourist visas to the United States – with more new sanctions likely in upcoming days. A host of countries, including the United States, has dismissed Honduran ambassadors and consular officials for supporting the current Honduran government. Neighboring countries have reacted harshly, isolating Honduras economically and politically from the rest of Latin America. Amidst the conflict, Hondurans seem to be holding their breath, just waiting for the upcoming November elections to set the country back on track. However, as countries continue to withdraw their support, the question on everyones’ lips becomes “Will the upcoming elections be recognized and validated?” United States diplomats say that it is too early to tell, but continue to stand firm that restoring Zelaya to office is the only way to negotiate a solution to this political crisis.

On the ground, the political predicament has taken its toll on an already suffering Honduras. During the traditionally high tourist season, destinations such as the island of Roatan are quiet – with beachside resorts like ghost towns, waves crashing on silent, empty beaches. Businesses dependent on tourism have suffered a financial beating this year, many operating at a loss.

Due to safety concerns and political instability, Habitat for Humanity and other development organizations who rely on foreign volunteers for fundraising and labor have suspended brigade activities for the current year. Educational programs that bring exchange students are also withdrawing from Honduras. In government departments and many NGOs, next year’s programming budgets are in limbo during the freeze on IMF and country donor funds.

Women attending an Adelante assembly meeting, high in the mountain village of Marcala.

In an economy already burdened by the global recession the effects have been deeply felt. Regardless of which side one stands on current issues, when sanctions are applied, when aid is suspended, when public schools close, the people that end up being penalized the most are those who can afford it the least: the poor. As most Adelante Foundation clients fall into this category, the last few months have been particularly difficult. In addition to economic concerns, Adelante has noted that clients have been struggling with shorter business hours due to government imposed curfews, less traffic along busy routes where goods are sold, and protests and roadblocks creating delays in travel and limiting access to supplies. There are a few silver linings to this black cloud. Curfews have been removed, there have been fewer paralyzing protests, and public school children are back in classes after nearly two months of teacher strikes.

In spite of all remaining obstacles, Hondurans are still hopeful that the situation will turn around, although they are not sure how or when. In the meantime, the Adelante Foundation will continue to move forward with their mission to improve the standard of living of extremely poor women living in Honduras, remaining dedicated to assisting those most vulnerable, who – in turn – are working to survive, caring for their families, and hoping their voices might also be heard amidst the clamorous sounds of international opinion and diplomatic negotiation.

By Desirae Wrathall