Diarist 03

Diarist 03 in the year to November 2024:
Status: widow.  Household size: 1  
Occupation: none, (retired shopkeeper) but receives remittances.   Education: can read and write
Major assets: house and homestead plot, plus another very small plot of land 
Net income year to Nov 2024: remittances of 82,000 taka (USD 689,  PPP$ 2,860, or PPP$ 7.83 per day per person):  Income in kind: none
End Sep 2024 balances at formal FSPs:  Savings 1,381 taka, Loans 9,000 taka

Diarist 03, unlike Diarists 01 and 02, is a Muslim, with a home  a few hundred metres away from them in the local market area. Now in her early 50's, she has been a widow since 2006, and has brought up five daughters, three of whom have married, one of whom trained as a nurse and has a job in Malaysia. Diarist 03's husband was a shopkeeper and after his death she continued to run the shop, a small-scale grocery store (seen in the picture).  By the time we started tracking her transactions the shop was running poorly, as the first chart suggests. She told us, back then, that she thought the shop was making a profit, though she didn’t keep accounts. She got stock delivered each morning by rickshaw van and usually paid for it out of the day's takings at the day's end. She gave 'baki' (shop credit) to several customers many of whom were salaried employees of the hospital opposite. She said "you can’t run a shop without giving baki". In early 2018 she closed the shop. Her home is still the rooms she rebuilt behind the shop. That is her one big asset, though she now spends more and more time with one of her daughters in Dhaka.  

Diarist 03 in her shop

Diarist 03, chart 1: her primary balance

As the chart shows, during the three years that she was running the shop as well as raising and educating three daughters, her spending exceeded her income in many months. 

Her handling of money contracted sharply after she closed the shop, but her 'primary balance' was still negative in many months, and still is.

Our subsequent slides will examine how she has coped with this situation.

We begin with loans, because they shed light on the troubled earlier years.

Diarist 03, chart 02: her loans and repayments

When we started tracking Diarist 03 she already had loans outstanding from multiple MFIs (50,000 from Grameen, 20,000 from IDF, 29,000 from BASA, 30,000 from Uddipan, and maybe more - she was embarrassed to reveal all). 

She had reached the stage where she was borrowing from one MFI to pay off another - as the chart shows for 2015 and early 2016. 

She was in considerable distress.

We took an unorthodox approach for researchers and decided that the Diary Project should lend her enough money, interest free, to extinguish these MFI debts - that can be seen in the chart for June 2016. We did it mainly because she was, as a widow, still educating her three unmarried daughters, and we didn't want to stand by and watch their futures collapse. Diarist 03 has been paying off the debt to us, in small occasional instalments, ever since. She has borrowed since, but not from MFIs, whom she now avoids.  In mid 2021 she borrowed 'howlats' (interest-free loans from family and friends) to rebuild the home behind the shop: some of that money has been repaid, some may still be repaid, and some has turned, over time, into gifts rather than loans. 

Diarist 03, chart 3: the rle of remittances from Malaysia

Our third chart clearly explains the transformation in Diarist 03's fortunes.

Not long after she gave up the shop, and as a result of her being able to complete her third daughter's education, that daughter got a job in Malaysia as a nurse. She has been remitting cash to her mother ever since, a resource that has helped pay to complete her sisters' educations as well help pay for the home rebuilding.

Diarist 03 also took some small cash gifts.

But was Diarist 03 ever a saver?

Diarist 03, chart 4: her modest savings record

Her savings have been modest compared with her loan and remittance transactions (charts 3 and 4 have the same vertical scale).

 But she has always saved, most consistently when she had to make savings at MFIs in the early years, and then saving voluntarily with the local cooperative.

As at October 2024 she has about 1,500 saved at the cooperative. And she still owes us  9,000 for the 'rescue' loan we made back in 2016.