Bonded Labourers – ‘What Little We Earned’

When the Kamaiya (bonded labour) system of southwestern Nepal was abolished in 2001, the government promised them land, by creating camps for the freed Kamaiya on government land here each family was supposed to receive its own small plot. Several aid agencies started work with these thousands of people – literacy, food-for-work projects, vocational training, and microfinance. During work for one of these organizations, I was interviewing freed Kamaiya and met Kalamati.

Kalamati was a bonded labourer (Kamaiya) for most of her life as her family had had a debt with a property owner for several generations. Despite being released from their inherited debts, her family and many of these people continued to struggle for their daily existence.

“Before, (as bonded laborers) we had to work from morning to night, and never had time for our own development. Now, we can make our own decisions and have our own piece of land.”

The crux of their situation was financial – anyone whose family might have had to take a loan from a landowner in the past. The system started during the settlement of the Terai by migrants from the hills. One landowner said that at the time, many of indigenous people, mostly Tharus, were interested to work the land “under the guardianship of the landowner”. When asked how much debt it took to bind a family for life, the answer was surprisingly little – Rs 15,000, 9,000, or even less. (about $300)

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Even people of other ethnic or caste groups would become Kamaiya if they lost their fields and needed a loan from a ‘zamindar’ (landlord) to buy food. We interviewed a Magar ethnic woman from the hills whose family lost their land to the local moneylender and a high caste man whose parents’ fields had been lost in a flood. The system was institutionalized economic exclusion of the vulnerable who needed a loan.

Families with any size of land holding usually had a Kamaiya family to work the land in return for food and meagre ‘daily wages’ as repayment on the loans. One young man working with us had grown up with Kamaiyas working for his parents. He had questioned the inequities from a young age and joined one of the activist groups lobbying for their release. We heard a story of a generous widow who owned only a small piece of land. She borrowed money from the bank to repay a large landowner the debt of the one Kamaiya working on her land. However, when the government absolved the Kamaiya debts, she still had to repay her loan for the Kamaiyas to the bank.

Some freed Kamaiya have succeeded in earning a simple living by operating shops, learning a trade, raising livestock, or growing and selling vegetables, many have still had a difficult time earning enough to survive. Others were reported to have had to mortgage their children back into bondage as child labourers in order to obtain loans or annual salaries from which the rest of the family could buy food. Many still work on the landlord’s fields but now for regular wages of Rs. 70-100 per day. One man we had interviewed said he calculated that in the past as a Kamaiya, his father had earned only three rupees per day.

In one camp, the men told of working in a sugar factory in Bardiya where they earned Rs 20 per day. The mill was owned by the family of a four-time prime minister. How can Nepal ever change the relationships between the rich and the poor when its leaders continued to assume an attitude of ruling rather than governing and serving the people.

Other people told of having to go out in the fields at night to beat the crops and scarred away insect pests; they had to pay for the kerosene in the lanterns themselves – even though it was the landlord’s crop. When they did not have enough money for kerosene, the landlord loaned it to them, adding to their already overwhelming debts.

The oppression went further for the women expected to work in the homes of some property owners. “It was much harder for the women,” said one older woman. She went on to describe how the ‘tradition’ of young women being expected to sleep with some landlords on the night of their wedding, usually to another Kamaiya, had led her daughter to go join the insurgency as her only means of rebelling. It was 2002. The insurgency was spreading over rural Nepal. We had to leave. Bardiya(Jainpur) # 17 Bardiya(shantinagar) # 29 BoyInFrontHouse FamilyKitchen kaiali Maleketi women 02mar  Manehara Camp#004    WomanChild  Women Participants4_Kailali_UG 3Women  Bardiya(Jainpur) # 14Bardiya(Jainpur) # 15

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THE POWER OF FIVE RUPEES

“She is too poor to be in the group,” said several women in a microcredit group as a woman in tattered clothing carries a huge load of straw past our meeting place. They had just said that they are the poorest women in the village.

WomenGroup_Sap01_25aNow, the group secretary explained that the woman cannot afford the stipulated monthly saving amount of Rs 50 because her few rupees all get spent before the meeting. Plus, she was too busy as a day labourer to attend the monthly meetings.

This incident, several years ago, was a key to the thinking for CORE’s saving-&-credit project, “A Hand-Up”.

First, the stipulated saving amount excluded the poorest people, so we ensured that there were not any stipulated minimum saving amounts to hinder very poor people from participating in the group.

Secondly, the poorest people survive on day wages that are usually just enough for their basic needs of that day. With demands for food and shelter, they have a hard struggle, if at all possible, to keep enough rupees for a saving group.

DSC00353With our Nepali partner organisation, Society for the Urban Poor (SOUP), we have the facilitators visit the group members each day to collect their few rupees of daily saving whether 10, 30, or 100 rupees.

With the power of even just five rupees per day, most members have gradually increased the amount that they can save each day and built up a saving account that they had never dreamed possible.

Most members (mostly women but a few men) report that they feel a much greater sense of satisfaction and empowerment from saving than from taking loans. Several studies and much larger programs have verified this finding.[1] Each of them knows that their families survived on loan after loan in the villages. But, saving a hundred dollars’ worth of rupees is a real accomplishment to them.

The saving amount of each member then serves as collateral for small loans to meet emergency needs and for capital to purchase more stock or equipment to improve their small enterprises. The loans come from both the saving fund of the group and a revolving fund provided by CORE.

Our stipulation is that the loans are small so that they can be readily repaid and so that the funds are available to more of the members. Some women have taken up to seven rounds of loans, which they repay and then borrow a somewhat larger amount if they need it. Gradually, some of these members join a larger group or cooperative to have access to larger loans.

Most of the ‘graduating’ members stay members of the ‘Hand Up’ group for the sense of solidarity with the other members. But, their moving on for bigger loans is our greatest satisfaction.