Presenters at the “Human Trafficking: Responding to Trafficking in Persons in the Americas, conference report that the policies adopted by certain countries contribute to the flow of human trafficking. Take for example the dollarization of Ecuadorian currency. This shift from national currency to the U.S. dollar has caused a surge in migration, by people who are lured by the prospect of earning U.S. dollars. Traffickers take advantage of the constant flow of migration and have preyed on the most vulnerable.

- Sara Fajardo, CRS communications officer

Some quick trafficking notes:

In Moldova there are some orphanages that have been found to sell children for 100-200 euros a piece.

Brazil was the last country to abolish slavery in the hemisphere in 1888. Today tens of thousands continue to work in slave like conditions.

In Peru up to 33,000 people may be trapped in slave labor at mining camps.

Several Chinese slave labor scandals have been uncovered in the past few years. These were allowed with the complicit help of corrupt officials. Child slaves, working in brick kilns, were sold to other kilns when the first was forced to shut down.

- Sara Fajardo, CRS communications officer

Around 70 participants from all corners of the globe have gathered at “The Human Trafficking in Persons in the Americas,” conference being held at the L’Enfant Plaza Hotel in Washington D.C. The presentations are bilingual and the room is buzzing with the sound of direct translations being whispered into people’s ears as the first panel of the day gets underway.

Nyssa Mestas has taken the stage. She specializes in Migration and refugee services for the Anti-Trafficking Program at the U.S. Conference of Catholic Bishops (USCCB).

There are two types of trafficking: sexual exploitation and forced labor.

Both U.S. citizens and foreign nationals are being trafficked in the United States, although they tend to be trafficked for different purposes. For U.S. citizens it is primarily for sexual exploitation, and with foreign nationals it is primarily for forced labor.

Sex trafficking is not just illegal prostitution as most might think, but runs the gamut of strip clubs, escort services, and marriage services to name a few.

Forced labor can take a variety of forms, from the legitimate business such as a nail salons, restaurants, or circus performances to non-legitimate businesses such as domestic servitude, and drug manufacturing and dealing.

These activities are not limited to specific regions of the U.S. and can be found in both rural and urban settings. Currently the top cities for human trafficking are Newark, L.A., New York, Houston and Miami.

Traffickers play on vulnerable persons, but they prey on U.S. citizens and foreign nationals differently.

Victims of domestic trafficking, according to Mestas, are usually women who are young, female, and fall within the 13-17 age range, but the USCCB has also seen as young as 12, and in some cases boys. They are coming from broken homes, in some cases living at a foster home, and end up running away or are lured away by adults over the internet. A few are kidnapped. The USCCB has heard of cases of kids being lured from malls or clubs. The traffickers tend to create an emotional dependency with the victims or foster drug and alcohol addiction in order to entrap them. They may also use violence and coercion.

In the past 2 years the USCCB has seen people from 72 different countries being trafficked into the U.S. Many are being recruited or lured and brought in by the traffickers. Many of those who are trafficked are looking for employment. They are frequently in the margins of society who are not protected, women, street youth, orphans. There are also cases of kidnapping.

They are being lured by a promise of a job, education, or marriage. Many see ads on the Internet or newspaper. Traffickers have found that recruiting is very effective tool to lure in potential victims.

- Sara Fajardo, CRS communications officer

Ben Hess is a CRS international development fellow living in Guatemala and working with savings-led microfinance programs.

One of the first things I ask participants at the CRS microfinance trainings is: “How many of you save money?” Invariably, I am told that that they cannot afford to save. When pressed, some concede that, although they do not have formal bank accounts, they do have small amounts of money that they can access if necessary. Yet the tendency to set aside a specific amount usually does not exist, especially when they face significant barriers to formal or informal savings mechanisms.

The next question I ask is: “How can you save more?” The two most common responses are “increase income” and “reduce expenses.” For families living in extreme poverty, however, both of these are difficult to do. Adults—and in some cases, children—are probably already working full-time, while the vast majority of family income covers basic expenses such as food, medicine, and lodging.

Even so, we try to help participants understand that small adjustments in how they spend disposable income would enable them to save more. For example, transportation costs could be reduced by making trips to the market every two weeks instead of weekly, and purchases of nonessential items like ice cream or beer could be scaled back slightly. Often, creating a budget that tracks income and expenses helps identify areas where families can save money.

It’s important to stress that we’re not telling participants that they can no longer buy ice cream. We are simply trying to get them to reflect on where their money goes, and whether opportunities exist to increase savings. Though the savings might amount to just $1-2 a month, these often constitute the minimum contributions required by savings groups and can make a big difference over time.

Above all, we try to promote a “culture of savings” among poor families. In El Salvador and Guatemala, I’ve noticed that children often accompany their parents to the savings group meetings. They observe the sacrifices their parents make to save and, hopefully, the fruits of those sacrifices in times of need. Just as parents in the United States teach their children the importance of saving money as an important component of good financial habits, so parents across the globe can impart these same concepts to their children so that they learn to effectively budget and manage their money.

Ben Hess is a CRS international development fellow living in Guatemala and working with savings-led microfinance programs.

After a two-day workshop trainers are ready to help others form savings-led microfinancing groups. Photo by Benjamin Hess/CRS

CRS sought to maximize impact by training a small group of women who have received literacy training and already serve as animators for community activities. They, in turn, would be responsible for forming and training the savings groups. This training-of-trainers method is considered more effective and sustainable because the animators have the community’s trust and confidence, enjoy personal relationships with many of the people they are trying to recruit, and understand the local norms.

The workshop covered how savings groups work and the benefits they offer, the roles and responsibilities of group members and leaders, and the systems and controls that ensure the groups’ transparency and accountability. We used games and interactive presentations to help the animators practice the promotion and organization of savings groups. Above all, we emphasized the importance of the animators’ role as trainers and facilitators. The group members make all decisions together: they elect their leaders, determine how much to save, evaluate and grant loans, and ensure that members comply with rules.

At the end of the workshop, hope and excitement filled the room as each participant described her impressions of the project.

“I want to teach members of my community to save money,” one elderly community animator declared, her bright eyes shining with determination as she addressed the group. “I also want to give them hope for a better future.”

“I realized that anyone can save money, even if it’s just a few quetzals a month,” a younger woman commented.

Others expressed their appreciation for having the opportunity to form savings groups among their neighbors and friends.

The participants’ interest and buy-in reassured me that the project would receive a similarly favorable response in the communities where we hoped to form savings groups. The real clincher, however, came in the form of a question.

“Can we join the savings groups we form?” several women asked. I’m happy to report that the answer was “yes.”

Ben Hess is a CRS international development fellow living in Guatemala and working with savings-led microfinance programs.

A two-day training workshop on savings-led microfinance is part of a new CRS Guatemala pilot project. Photo by Benjamin Hess/CRS

“I put 2,000 quetzals in the bank a few years ago,” the woman explained quietly, “but when I went to withdraw the money six months later, the bank only gave me 1,800 quetzals.” I listened in shocked disbelief, but other women described similar hidden bank charges and barriers to access due to their difficult economic situation. While 200 quetzals is less than $30, this is a significant sum to lose for a family living on approximately $2 a day. Not surprisingly, the women understand the importance of saving money but had little faith in formal financial institutions.

I was facilitating a two-day training workshop on savings-led microfinance for six women animators and the staff of the Diocese of San Marcos Women’s Pastorate as part of a new CRS Guatemala pilot project. As troubling as the women’s stories were, they provided the perfect contrast to the idea that CRS was promoting—that poor men and women in their communities could develop their own financial services through self-managed savings groups.

In mid-August 2008, CRS Guatemala applied for a small grant from the CRS Latin America and Caribbean regional fund to implement the concept of savings-led microfinance through the formation and training of women’s savings groups in the Municipality of San José Ojetenam, which is located in the Department of San Marcos. Food insecurity, poverty, and illiteracy are endemic in this western border region. Since 2002, CRS and its partner the Women’s Pastorate have coordinated the “Women’s Empowerment and Girls’ Education Project,” which provides scholarships for school age youth, supports adult literacy activities, and promotes increased parental involvement in their children’s education.

The microfinance project’s goal is to usethe women’s savings groups to empower the members, further their leadership skills, and promote solidarity. Interestingly, although the savings groups have a clear economic purpose, the expected financial benefits of reducing the women’s vulnerability to household emergencies and providing members with savings and income-generating opportunities are actually secondary to the social objectives. Therefore, the project’s title is “Solidarity through Savings.”