Economic empowerment
ASOD can improve the economic situations of orphans and other vulnerable children, their households and families. ASOD looks in more detail at education in general, skills and vocational training, financial services for the very poor, agriculture and specific examples of projects.
The key points about responses to strengthen the economic situation of orphans and other vulnerable children are:
- It is important to be clear of the purpose of any activity before it is started. This means that the right tool can be used.
- Some projects seek to strengthen household resources. This may be done in preparation for or after a crisis. Financial services aimed at the very poor can be extremely useful in these situations.
- Other projects seek to provide relief to households at times of crisis. Financial services aimed at the very poor are not appropriate in this situation. Community 'safety nets' are needed. These can be established in a variety of ways including community fundraising, mobilisation of savings and joint agricultural activities .
- Providing financial services to the very poor requires special skills. It also requires a business-like approach. For these reasons, AIDS NGOs are often not able to run these services effectively. Partnerships with specialist microfinance institutions are more likely to be effective.
Economic strengthening
There are many ways in which the economic position of orphans and other vulnerable children, their families and households can be strengthened. Details of specific responses are presented in another section. Children and young people are extremely resilient. They are able to cope with a wide range of difficult circumstances. However, in some situations, these efforts to cope may produce problems. Some of the problems which may occur as a result of efforts to cope with the economic impact of HIV/AIDS are considered in another section.
The key point underlying the need for responses focused on economic strengthening of orphans and other vulnerable children is that HIV/AIDS increases poverty. It does this at several levels:
- National and regional
- Community
- Private sector
- Family and household
National
HIV/AIDS increases poverty at national level. This is seen in falling gross domestic product (GDP) and slower rises in human development index (HDI).
Community
HIV/AIDS fuels community poverty in different ways. It increases community expenses, for example on contributing to funeral costs. These and other community mechanisms which support families at times of difficulty can be called 'community safety nets' or 'community coping mechanisms'. These are being placed under strain by HIV/AIDS. HIV/AIDS is also causing other social changes. For example, illness and death of teachers and health workers is reducing access to these services and the quality of those services. In addition, HIV/AIDS may be reducing the number of people who are available for wage labour. HIV/AIDS may also reduce the number of employers looking for this kind of worker.
Private Sector
HIV/AIDS is affecting private companies in a number of ways. It is increasing their costs and reducing their profitability. An example of increased costs includes the amount paid for funeral costs and health insurance. The rate of absenteeism is high. Costs of training new staff have increased overall costs.
Family and Household
HIV/AIDS affects the economic situation of children and young people in many ways. These ways include:
- Reducing income - households affected by HIV/AIDS spend more time on health care. Therefore they have less time for economic activities, such as farming and trading.
- Increasing family size. As the extended family absorbs more orphans and other vulnerable children, the size of family increases. This increases the financial burden on the family.
- Increasing costs, for example of medicines and funerals.
- Sale and loss of property that the family/household owns.
There are three general ways in which families try to respond to the economic trauma of death of a parent. First, they seek to respond in a way which is purely reversible. Secondly, they use methods which are more difficult to reverse, for example sale of assets. Finally, their actions become irreversible. This is termed destitution.
The Importance of Economic Strengthening Activities
HIV/AIDS is contributing to poverty at many levels. The global strategic framework introduced in 2004 identifies strengthening the capacity of families to protect and care for children as one of five key strategies. Economic strengthening activities are seen as an important part of that strategy.
Problems of Economic Responses
Problems which orphans and other vulnerable children may face because of responses they make to cope with the economic situation they face and specific problems of child labour and economic and sexual exploitation.
HIV/AIDS affects the economic position of children and their families. Parental illness and death reduces family income. Families spend more on health care. These changes make children and their families poorer. Children and their families respond to these changes in a number of ways. Some of these ways help to meet immediate, survival needs, such as for food but increase vulnerability in the long-term. Children and young people without adult care are particularly affected. Examples of responses which increase children's long-term vulnerability include:
- Change in farming practices . These include the shift away from cash crops and sale of farm-related assets.
- Removal of children and young people from school to save money.
- Involvement of children and young people in child labour.
- Economic and sexual exploitation of children and young people.
Children and young people who seek to live and earn a living on the street .
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