The Political
economy of Sex
workers
Cooperative
Presented at University of
Pennsylvania
14th April, 2011
Dr. Smarajit Jana
Principal, Sonagachi Research
Training Institute
Email: smarajitjana@gmail.com
URL: www.durbar.org
Scope of this presentation
1) What is USHA?
2) Historical background.
3) The Genesis of USHA
4) Establishing the political identity of
USHA
5) Goal & Objective of USHA
6) Achievements
What is USHA?
• A cooperative society for and by the sex
workers.
•Is the largest sex workers run financial
institution in Asia [owned and managed by
the sex workers collective]
• Is the financial institution with one of the
best recovery rate in the state of West
Bengal, India (>90%)
• Has the largest condom social marketing
reach for any community-managed
organization in the country. (Sells 3.5 million
pieces of condom/annum.
• Currently has a membership of 16228 sex
workers.
• Has an annual turnover of 2.7 million USD.
•USHA’s capital asset is more than one
million USD.
• Around four to five thousands member
receive loan/annum.
The journey begins in the era of HIV
epidemic
• A Peer Based HIV prevention program was initiated in a red
light district called Sonagachi in Kolkata, India, during 1992
following standard components of interventions (eg. BCC, STI
& Condom promotion)
- However within a short span of time based on the identified
challenges Sonagachi developed a new programming
approaches and carve out a unique community led
intervention.
DMSC came into existence in 1995
As a fallout effect of this intervention program,
sex workers got inspired and felt the necessity
to collectivize themselves to build their
solidarity and to raise issues which are
pertinent to their life and occupation.
Challenges as identified
Attitude and practices of the service provider:
1) Society at large and policy makers in particular are reluctant to
respect her entitlement
2) Violation of basic rights of sex worker is a ‘nonissue’
3) Inability to access social/judicial redressal systems and
mechanism (even when her basic rights are violated) due to
very social and legal status of sex worker
Identified structural barriers in HIV
intervention Program
• Women in sex trade has very little power to negotiate
• Financial insecurity further compromises her ability to
enforce safer sex.
• Stigma and discriminatory practices from service providers.
The history behind the development of
the cooperative
What was the Financial state of affairs in red light districts?
How sex workers were treated even by the financial
institutions?
Why sex workers were denied
access to financial Institution
• Couldn’t open bank accounts as they
were unable to produce any documents in
support of their identity. (e.g. Rent
receipt, Electricity Bill or Telephone Bill)
•Law of the land (ITPA act) prohibited
women to hire rooms to run their
occupation as a result of which they
couldn’t possess any valid document.
• At points they were asked to bring their
husband to open bank account.
• They were often ridiculed by the bank
employees the moment they could spot
them as sex workers.
Story of financial
mismanagement
•
Majority of them use to put their
money in unauthorized financial
institutions (e.g. chit funds) or keep
their money with their Madam.
•
On enquiry we found that 99% of
them have been cheated by those
agencies at least once.
•
Whatever money they could keep
with them was usually taken away
by their Babus (lover).
•
Snatching of money by the rowdies,
police was a common phenomena.
•
Some of them stopped saving
anything even for the next day.
They spent everything they earned
on the very day.
Money lending mechanism in
Red Light Districts
In case of any exigencies they had to
depend on a category of money lenders who
used to visit red light districts regularly.
These money lenders are individuals who
are not linked with any financial
institution. They developed various kinds of
“lending deals”. However the minimum
rate of interest on any such deal when
calculated comes nearer to 300% per
annum.
The financial insecurity leading
to Plight of aged sex workers
Gradual reduction in income from the
sex trade with growing age
Usually no sustainable savings and
debts to be paid
No marketable skills to
income from other sources
generate
Increase of health-related expenses
with increasing age
Side by side they had to support their
growing children.
Linkages between economic
instability & HIV infection
Lack of control over money & lack of
economic stability compromises her
ability to negotiate with the clients for
safer sex.
Less condom use leading to repeated
STI’s & possibilities of getting HIV
increased.
Once infected sex workers had to spend
huge sum of money to buy health care
services to treat infection primarily from
the private health care sector and taking
loan from the moneylenders.
The vicious cycle
Less negotiating
power
Unprotected
sex
No savings
Susceptibilities
to STI/HIV
Further reduces
Economic stability
Took loan from
money lenders
Increase burden
to pay interest
Buying health care
services from
private sector
Genesis of USHA
After series of debate & discussion held among the
sex workers, following guiding principle was
articulated by themselves to built a financial
institution to ensure economic security.
 It should be exclusively of and for the sex
workers community.
 The underlying factors what prevent them in
accessing financial support has to be addressed.
 Community members should be in the policy
making bodies of the finance management
mechanism.
 Communities’ needs and priorities would be
respected while creating and managing a financial
institution.
Choosing the right option
 Out of few options (opening
bank account, engaging with life
insurance company, initiating
microcredit or cooperative
venture etc.)
 They decided to start their
own cooperative society.
 However Govt. Policy and
legislative practices prevented
them to open their cooperative
as they are considered as
immoral human being.
However this does not deter
them rather they accept this
challenge and mobilize large
number of sex workers to break
the barrier.
Sex workers engaged
into a unique discourse
….. Of morality and
immorality
At last Minister in
charge gave in. He
accepted their
demand and took
initiative to change
the specific clause of
the act giving birth to
USHA
The Management Structure of USHA
 Usha is run by a Board of nine directors (all are sex
workers).
 They are elected through a process of two tier electoral
system.
 In the first phase all members elect their 45 representatives
through casting their secret ballots
 The elected representatives then elect the Board members
who would run the office for a period of 3 years.
 No Board member can hold office more than two terms.
COMMUNITY LED OPERATION GUIDELINES OF
USHA
They are 47 employees of USHA and the male female
ratio (M:F= 1:2)
Staff recruitment Policy: Priority is given to the sex workers and
the girl child of the sex workers for all vacant positions.
Loan disbursement policy: Priority is given to the need of the
poorest section of the community. The Board of directors often try to
develop appropriate mechanism for loan repayment not withholding
disbursement of loan.
Flexible working Hours: Looking from the perspective of sex
trade, USHA has developed office & field based working schedule
and different scheme suited to the interest of the community.
The Goal of USHA
• To enable sex workers to become financially secure.
• To establish workers rights & social recognition of sex
worker.
• To ensure education and career building opportunities for
their children.
Services provided through
USHA
• Usha function as a credit cooperative and
give loans to members
• Social marketing of condoms to various
organizations who run STD/HIV intervention
programs or other reproductive health
programs.
• To develop self-employment schemes for sex
workers. (Provide vocational training and
establish market linkages for community
members)
USHA makes profit primarily from business
venture (but with a social cause)
1) Agriculture : Organic farming
2) Pisciculture : To protect bio diversity
3) Provide eco-friendly event management
services.
Stationery Supply
2001
Investment in Co
op. Bank - 1995
Organic farming
2003
Soc. Mkt of
Condoms 1997
Income
Usha Multi Purpose
Generation
through
Cooperative
Ltd.
Income
Generation
Marketing
Section
Kantha Embroidery
Work - 2005
Cosmetics
Selling 2005
Building Rentals - 2000
Train and Air
ticket booking 2001
Marketing of Sanitary
Napkins - 2004
Car on Rent 2001
USHA’s Commitment to
Community
Provide financial support for
various activities to enable and
empower sex workers and their family
members. (Capacity building and
social activism)

Create educational opportunities
for the children of sex workers.


Support HIV positive women.
Provide ART treatment and food
supplement.

The Collective decision making process
USHA being a part of the political struggle of the sex workers community is a member of the joint
policy making forum of the sex workers. The steering committee of Durbar includes other wings
of sex workers collective namely DMSC, Amra Padatik, Komal Gandhar & Sathi Sangathan in
addition to USHA.
This forum address any sort of conflict of interest or stress between the financial
management system & the political interest of the community.
This inclusive decision making system so far has succeeded in coordinating and
spearheading the sex workers movement through building complimentarity between
different wings of sex workers collective.
16268
13283
10278
10016
8084
7242
5901
4771
2712
2219
1801
483
214
104
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
94
Number of members
The growth of USHA Multipurpose Cooperative Society Ltd
1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2009- 201096 97 98 99 2000 01 02 03 04 05 06 07 08 2010 2011
Year
Year wise Breakup Growth of Working Capital (Lacs of Rs.) of Usha
Multipurpose Cooperative Soceity Ltd.
900
850
800
Working Capital
700
675
725
600
500
446
400
350
300
250
200
100
0
450
180
62
96
115
13
10
0
0.01 8
Year 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2009- 201096
97
98
99 2000 01
02
03
04
05
06
07
08 2010 2011
Year
Political Success of USHA
• Now more than a dozon of major financial
institutions which includes Banks,
Insurance company etc. are approaching
tosex workers and offering their support.
• Sex workers collective has put a term that
they have to registered their occupation as
sex workers before they would open their
account.
• Other marginalized communities
including sex workers collectives in the
country has emulated the same practice
through hiring the expertise of USHA.
•USHA has become the member of
Federation of National Cooperative Union
(The policy making body of the cooperative
societies in the country)
Development of the
sports complex
Old age home for
the sex workers
Future Plans
for USHA
Training Institute &
Guest House
Beauty Parlor
Low cost
Housing
Medicine Shop
Manufacturing of
Sanitary Napkins
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