Integration of Women into Grameen Shakti's Clean Energy Program in Bangladesh.
Research Team: Mohammad Yunus, Senior Research Fellow, Kazi Ali Toufique, Senior Research Fellow, Nazneen Ahmed, Senior Research Fellow and Moogdho Mim Mahzab, Research Associate.
Sponsor: United States Agency for International Development (USAID), Through
Development & Training Services, (dTS), Arlington, USA
Rationale and Objectives
In the 2000s an opportunity opened for a USAID intervention in Bangladesh which would jointly pursue two objectives in a complementary manner: the extension of renewable energy technology (RET) on a significant scale would be achieved through the concurrent economic empowerment of rural women. Funding was provided through the Rural Empowerment through Renewable Energy project to Grameen Shakti, the leading renewable energy company in the country, to carry out a decentralized technology transfer to rural towns through building Grameen Technology Centers (GTC), recruit women engineers, and train hundreds of rural women from poor households. It was envisaged that these women would be integrated in and around these GTC to contribute to the Grameen Shakti target of installing 1 million Solar Housing Systems (SHS) by 2012. Grameen Shakti, a for profit company and a constituent of the Grameen Bank subsidiaries, stood to benefit but so also would the many hundreds of women economically emancipated through integration into the renewable energy sector. This initiative could help rural communities, which have little expectation of being reached (or reliably serviced) by the Bangladesh electricity grid which is poorly resourced and managed. In addition rural women would generally benefit by their homes being lit with solar powered lamps and by accessing modern communications through powering television sets and recharging cell phones.
In two phases from 2006-2010, 35 Grameen Technology Centers (GTCs) were established and provided 15 days of training to a total of 2,797 rural women in the technical skills required to assemble components, install, and maintain the SHS. They also gained the capability of promoting the SHS to the public, to train users (often rural women based at home) in their use, and many gained business skills as well. This training took place across all seven of Bangladesh’s administrative divisions in small rural towns with an added focus on GTCs in the cyclone vulnerable coastal areas.
Main aim of this study was to review the objectives, social environment, and achievements of the above mentioned USAID intervention. More specifically the aim was to assess the progress made and obstacles encountered in training and empowering women in Renewable Energy Technologies. Research employing a survey of all trainees employed by Grameen Shakti and interviews with regional and high-level management was conducted. It was found 35 GTCs had been established, more than 100 women engineers employed and trained in solar technology and, in turn, they trained the rural women as technicians. The training was regarded by the trainees themselves, the engineers, and managers as good or excellent. A good proportion of women who had not completed secondary education benefitted considerably and were awarded commendations.
Findings from the study
Outputs were achieved but outcomes, however, not realized. Despite this considerable training achievement, very few (3%) of the trainees were employed or engaged as entrepreneurs in the renewable energy sector. Those 86 employees have benefitted considerably from their training, they have come from poorer families and fewer have graduated from high school but now they have work in rural areas which would otherwise not be readily available. They do not experience demanding hours, earn, and contribute significantly to their household income, have gained in confidence, and advanced in social and political participation. Although their hours are fairly modest they earn more for time worked than trainees who have found work elsewhere.
The minority who have been employed could be considered to be working in “green jobs” (in environmentally beneficial work) but not necessarily in “decent work” (in work conditions meeting conventional international standards of quality). While there are not long hours and pay per day is above that in alternative sectors, the work is atypical or irregular. Payment is by piece rate and earnings reported to be uneven and dependent on work available; there are no additional benefits. The average daily earnings of 141 taka per day ($1.80 at the current rate of exchange) is below the international norm for poverty at the personal income level of $2 a day. This is also low by national benchmarks: the earning level per day is just over 17% of the minimum daily wage in the Bangladesh garment industry ($10.45) which is regarded as the lowest internationally.
Although there has been visible evidence in the past of trainees engaged as entrepreneurs in assembling components outsourced from the GTCs and the activity of these entrepreneurs appears frequently in reports, no substance was found of such entrepreneurship. Interviews with regional managers confirm that outsourcing is not being practiced on any scale. In particular the niche activity of women entrepreneurs servicing, maintaining, and repairing SHS after installation was not found. Grameen Shakti branches provide warranties on products and undertake servicing and repairs rather than engaging women entrepreneurs in this activity. While a high proportion of trainees who were not employed have promoted and serviced SHS at one time or another, there is thin evidence that they have earned from this activity.
This study is not intended to evaluate Grameen Shakti or the project itself but to understand and draw lessons from the experience. Since the purpose of the project was to integrate the trainees into the renewable energy sector, the overarching question is the low level of integration achieved. Since most of the human capital formed through the project was not put to use there has been a considerable skill loss to trainees, the sector, and to Bangladesh. It is unlikely that further sales of SHS will absorb the majority of trainees in the supply chain as technological changes have occurred in the sector.
The following reasons were found for low incorporation:
• No plan for incorporation of trainees was agreed.
• The key outcome of incorporation, either as “entrepreneur” or “employee” was not defined.
• No indicators for entrepreneurship or employment were included in the work plans and no systematic reporting made of incorporation.
• Since the evolving low level of incorporation was not apparent, no corrective action was taken when it was possible to do so.
• Despite record levels of installation, the GTC model of decentralized technological transfer appears to have declined over time as fewer components are now assembled at the GTCs.
• Grameen Shakti board and management is overwhelmingly male and no company gender-equity policies are evident which would have accelerated the incorporation of women.
• Finally the Grameen Shakti SHS supply chain is gender segmented and the trainees were incorporated at the weakest point and not included in the growing aspect of installation.
The following lessons could be learned through the project and its outcomes:
• A comprehensive understanding and agreement should be reached between funder, implementer, and final employer on all aspects of integration.
• Gendered segmentation in supply chains or production lines should be identified prior to human capital formation projects.
• Human capital development has complex outcomes and projects require reporting systems to provide regular up-to-date feedback to allow achieved incorporation to be measured.
• Training should be appropriate to the context and prepare for more than a single outcome.
• Training alone does not guarantee entrance and integration into renewable energy supply chains; this will similarly be the case in other sectors.
• Complementary or even alternative strategies such as apprenticeship, subsidized employment or gender quotas in employment need to be considered.
• In planning for green jobs and economic activity, training should include knowledge and awareness of issues of climate change.
• Training can and should have the objective of improving women’s self-confidence and social and political emancipation. This should be planned for in the curriculum.
• Since lags and losses can be anticipated between training and deployment other methods of integration such as apprenticeships (with block release training) and subsidized employment for more skilled activities (to provide incentives to ensure women gain quality experience) should be considered.
• Future initiatives in this field will need to have sufficient flexibility for remedial corrective action taken to respond to unanticipated changes such as unfavorable market conditions.