March 10, 2008
My name is Melyora Trujillo and I am a Fellow with NamasteDirect. Having just returned from Chiapas, Mexico I am eager to share with you my extraordinary experience as the group captain of the Tres Aguaves 100+ group. The goal of my weeklong visit to Chiapas was to act as a liaison between you - the donors of NamasteDirect, and the groups of women microentrepreneur’s that NamasteDirect funds. While there I met with the women, took part in their meetings, learned about their businesses, and had the opportunity to see how the microcredit process works on a more in-depth level.
Accompanied by an assessor of Al Sol, the organization that NamasteDirect funds, I attended four to five meetings a day with different groups of women borrowers. All of the meetings took place at a borrower’s house with six to fifteen women. Many of these locations were an hour or more from the location of the Al Sol office, located in the very small town of Yajalon, which is about 5 hours east of the main office in San Cristobal de las Casas.
Chiapas is a one of the most beautiful areas that I have ever visited, and while driving through the lush hillsides complete with banana trees, corn stalks, and sunflowers, I was amazed at the beauty of the landscape and the numerous populations of indigenous groups that reside within the state. Impressed with the vibrant culture and the friendly faces I encountered, I was equally saddened and taken aback by the evident levels of poverty. Many of the houses that I visited consisted of dirt floors, tin roofs, no indoor plumbing, and lacked various necessities that you and I are so accustomed to in our daily lives. Furthermore, many of the houses were empty and contained only beds and a couple plastic chairs here and there.
Getting to many of the houses was a trek, some were located literally in the middle of nowhere, and many times we would park and walk for 30-60 minutes to the top or bottom of a hill. Once there I was able to see the women come together to pay back their loans (a bi-monthly occurrence), and hear about their current business concerns and/or achievements. I also had the opportunity to speak one-on-one with many of the women, and talk to them about their lives, their experiences, and how microcredit has positively affected and changed their realities. This was the main highlight of my journey, as well as taking photos with the polaroid camera, which was always a pleasant surprise and utter shock to the women when an instant photo of them magically appeared!
One situation that was really striking to me came from my meeting with the Cascada Group. Having driven for almost an hour we arrived at the meeting place, which was the house of Andrea Celeste Perez Victoria. Andrea’s business is attached to her one-room home and consists of a mini store that sells crackers, wood, gas, water, juice, candy, vegetables and fruit, she also grows coffee and makes skirts.
Within fifteen minutes, ten women all dressed in their beautiful and colorful traditional clothing complete with infants strapped to their sides were waiting anxiously to start the meeting and pay back a part of their loan. It was obvious that they all take pride in their business, and want the best for their family. Many of the women were really shy and hesitant to speak at first, but after some time and a few pictures, many allowed me to survey them.
When the meeting came to an end, Andrea and her husband invited Marciano (the Al Sol employee) and myself to eat with them and their family. To the other side of the house is a separate little room full of chickens and a little stove for cooking. In this room, Andrea and her mother made us food - eggs picked directly from the chickens that were running around, and corn tortillas. It was a really warm and welcoming gesture.
We talked about how much microcredit has helped them and their family, and they also wanted to ask me questions about my life and what it is like to live in the United States. When we were finished they asked if I would be in a Polaroid photo with their family. It made me feel really honored just to be a part of that photo and to have talked with them. More than anything, they stated that access to credit has changed their lives, and without it they do not know how they would survive.
From that visit and the other conversations that I had with borrowers, I learned quite of a bit about the women’s various businesses and the process of microcredit. Topics that were discussed included: the amounts that were borrowed, the actual business, where and to whom the product is sold, costs associated with the business, how much is made and how much time it takes to make the product, monthly family expenses, alternative business ideas, and what kind of tools or resources would be helpful for additional success.
The ability to have access to credit has enabled everyone I spoke with to start or expand their business. Without that capitol, many of the women were unsure of what they would do or how they would provide for their families. Such businesses include, little stores that are connected to their houses or on the side of the road, making textiles and crafts, selling tortillas, deserts or tamales, raising chickens or other animals to sell at a later time or to sell the eggs for consumption, and so many more.
In order to attain credit you must find around ten other women who want to start or expand a business with microcredit. The group component is important because every two weeks you are expected to pay back your loan, and if you are not able to your group is responsible for your payment. This instills individual and community responsibility, which I believe assists in a greater rate of success. The amounts of credit that women borrow are small, ($100-$300), and yet the changes that are made are immense, profound, motivating, and real. All of the women agreed that opportunity and success is possible with the ability to access credit. Many also suggested that some basic classes in business and other related issues would be beneficial.
Opportunity is rare for the women of Chiapas. However with NamasteDirect and donors such as you - opportunity exists. Your donations are the catalysts for women who want a better life for themselves, their family, and their community. With access to microcredit, this is the jump-start that the women of Chiapas need to create opportunity and change in their lives. This change equals successful businesses and a move out of poverty and into self-sufficiency for themselves, their families, and their communities
As stated before, having the chance to go to Chiapas and meet the women that NamasteDirect funds was one of the most eye-opening experiences I have ever had! I was truly honored to meet with the women, take part in their meetings, and see how well organized and compassionate the employees of Al Sol are. To me it only seems right that every individual has the opportunity to make something out of their lives and care for themselves and their families in the best way possible. The determination for a better life is captured at the end of every meeting when every woman stands up to say “unidad, disciplina, trabajo, y valor, esta es nuestra forma de vida” meaning unity, discipline, work, and self worth, this is the way of our life.
Having studied and read so much about the proven success of microcredit, I witnessed first-hand the immeasurable changes that microcredit creates. From a personal standpoint I want to continue to be a part of this change and I hope that you will join me.
Sincerely,
Melyora Trujillo
Wednesday, March 12, 2008
Caitlin Mitchell - February 2008 - Senoras de las Piedras
February 13, 2008
I just finished my week-long visit to Retalhuleu and I write you with both exciting and encouraging news!
The first bit of news is that I thoroughly enjoyed my home stay experience with the loan officer. For four nights and five days I lived side by side with Jacqueline Aguilar, the loan officer for the Senoras de las Piedras. I shared a bedroom with Jacqueline and her three siblings, ate meals with her family, and traveled on chicken buses to nearby towns to visit with NamasteDirect clients. As I got to know Jacqueline’s family, I was very impressed to learn that Jacqueline’s mother is a current Namaste-affiliate loan recipient. With the money she has earned with the help of her loans, Jacqueline’s mother has been able to contribute to the family’s finances and ensure that her children receive good educations. This hard work has paid off, as her eldest child, Jacqueline, is now a loan officer for the organization that helped the family break out of poverty.
I enjoyed the homestay experience not only because it offered me unique insight into how Guatemalans really live, but also because I believe it helped facilitate the interview process with the clients. Living with Jacqueline and her family helped me develop an intimate relationship with her. By the second day, we felt very comfortable with one-another and I believe it was the familiarity with which Jacqueline and I interacted that caused the loan recipients to trust me and speak candidly to me about their lives and businesses. Overall, I thoroughly enjoyed my week with the Aguilar Family and am confident that future fellows will enjoy the homestay experience as much as I did!
Among the dozens of NamasteDirect clients that I met this week, several especially touched me and I wish to share their stories with you.
Maria Barrios Gramajo
The first is the story of Maria Barrios Gramajo. Doña Maria is the single mother of a twelve-year old son. The father of her son abandoned her when he found out she was pregnant and, as a result, she has single-handedly raised her son for over a decade. Lacking formal education, she has worked for many years as a cleaning lady. Although Doña Maria works very long hours, the pay for such work is very low and, as a result, she lives with her son in a very modest, one-room shack. The shack consists of a few sheets of tin nailed together and a dirt floor. It lacks electricity and running water and, due to frequent robberies, the only items in the house are two bed frames, both of which lack mattresses, on which she and her sleep. While Doña Maria lives in severe poverty, she is hopeful that with the help of her NamasteDirect loan, her living situation will improve. She used the 1000 Quetzales she received to purchase second-hand clothing from nearby markets. She now sells these clothes to the owners of the houses she cleans. With this additional income, she is able to buy much needed necessities, such as school supplies for her son. Although she still has a long way to go in her journey, NamasteDirect has provided Doña Maria with the means to take her first step towards overcoming poverty.
Angelica Ramires Lopez
The second story is of Angelica Ramires Lopez. Doña Angelica has worked for several years as a saleswoman for an order-by-mail catalogue. While she has many clients, she has not been able to increase her sales because she must have enough cash to cover the entire cost of the products before she can mail in the order. This is difficult in Retalhuleu because the majority of her customers is poor and can only pay for products in installments. Therefore, the process of selling a product and receiving the commission from such a sale is very slow. However, several months ago a friend told her about NamasteDirect’s loan program. She decided to apply for her first loan. After receiving her 1000 Quetzales loan, Doña Angelica has increased sales because she now has the capital to pay for her customers’ orders in advance of receiving payment in full.
Doña Angelica invited me into her home for her interview. She lives with her husband and four sons in a one-room wooden house with a tin roof and cement floor. As we sat down at her table to conduct the interview, she proudly pointed out three photographs that were hanging on the wall above the table. They were of each of her three oldest sons and had been taken upon their graduations from Primaria (primary school). Doña Angelica was very proud of the fact that all of her school-aged children are in school. For a woman who did not receive more than a couple years of schooling, she feels this is the most important gift she can give her children. She hopes that all of her sons will be able to stay in school so that they will be equipped with the tools to obtain well-paying jobs. With the help of NamasteDirect donors, Doña Angelica is on her way to making this dream a reality.
Blanca Juarez Garcia
The third story I wish to share with you is that of Blanca Juarez Garcia. Doña Blanca’s story is so powerful because it illustrates how microcredit loans really do change lives. Doña Blanca was the oldest of eleven siblings. Her mother was physically abusive and forced her to forgo schooling and instead take care of her younger brothers and sisters. She was not allowed to date and her mother would hit any boy that came to the house asking to date her. Nevertheless, one boy persisted and, after being assaulted on four different occasions, was allowed to date Doña Blanca. They were married one year after they started dating because she saw marriage as the only opportunity to escape her awful living situation. However, shortly after they were married, she discovered her husband was an alcoholic. This greatly troubled her and for years she tried to get him to stop drinking. Her husband did not think he has a drinking problem and, as a result, her efforts were fruitless.
Doña Blanca’s husband had neither land nor a house when he married her. His uncle gave them permission to build a house on his land, but as they had no money, they lived in a one-room shack made out of plastic bags. Her husband was a soldier for the Guatemalan government and his job required him to be gone for twenty days to a month at a time. He would only provide her with 200 Quetzals a month, an amount that was not nearly enough to live on. Doña Blanca had no other choice but to begin making money herself, but with a new-born baby, she had to work at home. She took out her first loan, which allowed her to begin making clothes and raising pigs to sell in the market. Later, she began cooking tamales and other dishes to sell. From the money she earned in these endeavors, Doña Blanca saved a little each month with which to buy cement blocks. After several years, she had enough blocks to build a house so that she no longer had to live in the shack made of plastic bags. In 1997, she took out a small loan with which she built a second small house on her property which she currently rents out. Her third loan helped her to buy clothes, which she then began selling on foot. Her fourth loan allowed her to buy a small warehouse in which to store her merchandise at night. Another loan provided her with the money to rent a stall in the local market, where she currently sells clothing. Her most recent loan has allowed her to purchase higher quality clothing to sell in her stall.
Through the micro-credit loan process, Doña Blanca has been able to improve her living situation. The money she received has helped her expand her businesses and build safe and comfortable housing. Furthermore, the loans have allowed her to become financially independent. This fact, combined with the increased self-esteem she has developed through her relationship with the other borrowers, has allowed Doña Blanca to build up the confidence to kick her husband out of their house. While this was very difficult for her, Doña Blanca knows it was the right thing to do for both her children and herself. This story is so moving because it not only demonstrates how microcredit loans help move women out of poverty, but also how they help women develop independence and a sense of self worth.
In closing, I would like to thank you once again for donating to NamasteDirect. I hope the insight into the lives of the loan recipients that I have shared with you has provided you with an understanding of the tremendous need these women face and the enormous impact your donations are making on their lives.
Thank you,
Caitlin Mitchell
I just finished my week-long visit to Retalhuleu and I write you with both exciting and encouraging news!
The first bit of news is that I thoroughly enjoyed my home stay experience with the loan officer. For four nights and five days I lived side by side with Jacqueline Aguilar, the loan officer for the Senoras de las Piedras. I shared a bedroom with Jacqueline and her three siblings, ate meals with her family, and traveled on chicken buses to nearby towns to visit with NamasteDirect clients. As I got to know Jacqueline’s family, I was very impressed to learn that Jacqueline’s mother is a current Namaste-affiliate loan recipient. With the money she has earned with the help of her loans, Jacqueline’s mother has been able to contribute to the family’s finances and ensure that her children receive good educations. This hard work has paid off, as her eldest child, Jacqueline, is now a loan officer for the organization that helped the family break out of poverty.
I enjoyed the homestay experience not only because it offered me unique insight into how Guatemalans really live, but also because I believe it helped facilitate the interview process with the clients. Living with Jacqueline and her family helped me develop an intimate relationship with her. By the second day, we felt very comfortable with one-another and I believe it was the familiarity with which Jacqueline and I interacted that caused the loan recipients to trust me and speak candidly to me about their lives and businesses. Overall, I thoroughly enjoyed my week with the Aguilar Family and am confident that future fellows will enjoy the homestay experience as much as I did!
Among the dozens of NamasteDirect clients that I met this week, several especially touched me and I wish to share their stories with you.
Maria Barrios Gramajo
The first is the story of Maria Barrios Gramajo. Doña Maria is the single mother of a twelve-year old son. The father of her son abandoned her when he found out she was pregnant and, as a result, she has single-handedly raised her son for over a decade. Lacking formal education, she has worked for many years as a cleaning lady. Although Doña Maria works very long hours, the pay for such work is very low and, as a result, she lives with her son in a very modest, one-room shack. The shack consists of a few sheets of tin nailed together and a dirt floor. It lacks electricity and running water and, due to frequent robberies, the only items in the house are two bed frames, both of which lack mattresses, on which she and her sleep. While Doña Maria lives in severe poverty, she is hopeful that with the help of her NamasteDirect loan, her living situation will improve. She used the 1000 Quetzales she received to purchase second-hand clothing from nearby markets. She now sells these clothes to the owners of the houses she cleans. With this additional income, she is able to buy much needed necessities, such as school supplies for her son. Although she still has a long way to go in her journey, NamasteDirect has provided Doña Maria with the means to take her first step towards overcoming poverty.
Angelica Ramires Lopez
The second story is of Angelica Ramires Lopez. Doña Angelica has worked for several years as a saleswoman for an order-by-mail catalogue. While she has many clients, she has not been able to increase her sales because she must have enough cash to cover the entire cost of the products before she can mail in the order. This is difficult in Retalhuleu because the majority of her customers is poor and can only pay for products in installments. Therefore, the process of selling a product and receiving the commission from such a sale is very slow. However, several months ago a friend told her about NamasteDirect’s loan program. She decided to apply for her first loan. After receiving her 1000 Quetzales loan, Doña Angelica has increased sales because she now has the capital to pay for her customers’ orders in advance of receiving payment in full.
Doña Angelica invited me into her home for her interview. She lives with her husband and four sons in a one-room wooden house with a tin roof and cement floor. As we sat down at her table to conduct the interview, she proudly pointed out three photographs that were hanging on the wall above the table. They were of each of her three oldest sons and had been taken upon their graduations from Primaria (primary school). Doña Angelica was very proud of the fact that all of her school-aged children are in school. For a woman who did not receive more than a couple years of schooling, she feels this is the most important gift she can give her children. She hopes that all of her sons will be able to stay in school so that they will be equipped with the tools to obtain well-paying jobs. With the help of NamasteDirect donors, Doña Angelica is on her way to making this dream a reality.
Blanca Juarez Garcia
The third story I wish to share with you is that of Blanca Juarez Garcia. Doña Blanca’s story is so powerful because it illustrates how microcredit loans really do change lives. Doña Blanca was the oldest of eleven siblings. Her mother was physically abusive and forced her to forgo schooling and instead take care of her younger brothers and sisters. She was not allowed to date and her mother would hit any boy that came to the house asking to date her. Nevertheless, one boy persisted and, after being assaulted on four different occasions, was allowed to date Doña Blanca. They were married one year after they started dating because she saw marriage as the only opportunity to escape her awful living situation. However, shortly after they were married, she discovered her husband was an alcoholic. This greatly troubled her and for years she tried to get him to stop drinking. Her husband did not think he has a drinking problem and, as a result, her efforts were fruitless.
Doña Blanca’s husband had neither land nor a house when he married her. His uncle gave them permission to build a house on his land, but as they had no money, they lived in a one-room shack made out of plastic bags. Her husband was a soldier for the Guatemalan government and his job required him to be gone for twenty days to a month at a time. He would only provide her with 200 Quetzals a month, an amount that was not nearly enough to live on. Doña Blanca had no other choice but to begin making money herself, but with a new-born baby, she had to work at home. She took out her first loan, which allowed her to begin making clothes and raising pigs to sell in the market. Later, she began cooking tamales and other dishes to sell. From the money she earned in these endeavors, Doña Blanca saved a little each month with which to buy cement blocks. After several years, she had enough blocks to build a house so that she no longer had to live in the shack made of plastic bags. In 1997, she took out a small loan with which she built a second small house on her property which she currently rents out. Her third loan helped her to buy clothes, which she then began selling on foot. Her fourth loan allowed her to buy a small warehouse in which to store her merchandise at night. Another loan provided her with the money to rent a stall in the local market, where she currently sells clothing. Her most recent loan has allowed her to purchase higher quality clothing to sell in her stall.
Through the micro-credit loan process, Doña Blanca has been able to improve her living situation. The money she received has helped her expand her businesses and build safe and comfortable housing. Furthermore, the loans have allowed her to become financially independent. This fact, combined with the increased self-esteem she has developed through her relationship with the other borrowers, has allowed Doña Blanca to build up the confidence to kick her husband out of their house. While this was very difficult for her, Doña Blanca knows it was the right thing to do for both her children and herself. This story is so moving because it not only demonstrates how microcredit loans help move women out of poverty, but also how they help women develop independence and a sense of self worth.
In closing, I would like to thank you once again for donating to NamasteDirect. I hope the insight into the lives of the loan recipients that I have shared with you has provided you with an understanding of the tremendous need these women face and the enormous impact your donations are making on their lives.
Thank you,
Caitlin Mitchell
Daniel Zoltani - January 2008 - Patzun
January 16, 2008
Group 100 of Patzún
Like clockwork mother and daughter work on the task at hand. Few words are spoken over the blaring Latin tunes that rattle from the boom box over the doorway. Wood is continuously shoved in the stove to keep it roaring hot; a pot of beans, a creamy type of corn soup, and a pot of chilies simmer on the hot black iron stove. The room is dark except for the light let in at the doorway and the glow of the wood stove. A fattened chicken and her numerous chicks prance in circles around the dirt floor in search of fallen food. The smell of burnt corn leafs, and a smoky fire fills my lungs as I step into the kitchen. This is the scene I walk into as I meet Rosa Coyote and her mother Ricarda Coyote hard at work.
Group 100 of Patzún
Like clockwork mother and daughter work on the task at hand. Few words are spoken over the blaring Latin tunes that rattle from the boom box over the doorway. Wood is continuously shoved in the stove to keep it roaring hot; a pot of beans, a creamy type of corn soup, and a pot of chilies simmer on the hot black iron stove. The room is dark except for the light let in at the doorway and the glow of the wood stove. A fattened chicken and her numerous chicks prance in circles around the dirt floor in search of fallen food. The smell of burnt corn leafs, and a smoky fire fills my lungs as I step into the kitchen. This is the scene I walk into as I meet Rosa Coyote and her mother Ricarda Coyote hard at work.
Rosa, 31 and her mother Ricarda, 76 live in Patzun and are first time borrowers of FAPE, a small private microcredit institution. Rosa and Ricarda are part of the group that has been funded by NamasteDirect. They have permitted me to observe what an average afternoon is like in their lives. I arrive around nine o’clock, but Rosa and Ricada have been up since six preparing a number of different foods. Today, like every other weekday, the two prepare lunch to sell to the teachers of the nearby elementary school. The menu consists of tortillas, tostadas, chucittas, beans and corn soup.
Both Rosa and Ricarda have received a loan of 1,500 quetzals, approximately $200, for a six month period. Every two weeks they meet with their borrowing group of eight other women and their loan officer to pay back a portion of their loan. They inform me that neither has missed a payment nor do they plan on doing so. Before receiving credit, Rosa worked in a broccoli factory packaging broccoli all day long. There was hardly time in the morning to cook a decent breakfast and if she was behind in her quota she often was only able to take a few minutes to munch on a stack for lunch.
With her first loan, Rosa was able to buy a variety of snacks, fruits and drinks that she sells out of her home, the basic ingredients used to cook up her lunches and some materials needed to weave her beautiful, detailed weavings. Rosa still works very long days, but as her own boss, she is able to work at her own leisure and work from home, while at the same increasing her income. Rosa was struggling in life not because she was lazy or because she lacked any kind of skill, she was struggling simply because she lacked the means to jumpstart ideas and opportunities she might have had. With just one small loan, Rosa was able to implement her skills, her hard work and her natural entrepreneur attitude to vastly improve her life. Rosa’s story illustrates the success that microcredit has in improving the lives of the poor. Given the support of financial capital, however small, the poor are fully capable of improving their own lives. Rosa’s story demonstrates the success of microcredit but is hardly one that is unique.
As a NamasteDirect Fellow, I was granted the opportunity to gain first hand experience of what life is like for those living in poverty and what is being done to improve their situation. For one week, I partnered up with Saturnino Cocon Coyote, a loan officer with FAPE. Together we set out to gain a better understanding of microcredit; how it truly affects the people, its success and its shortcomings, and its procedures and ideology.
We accomplished a lot in the one week. We traveled all over the department of Chimaltenago, from Patzun to Tecpan to more remote villages like Paraxquine and Xenimajuyu. I discovered in such villages my Spanish served little purpose as most of the people have maintained their indigenous language- in this region Cakchiquel is spoken. I was able to sit in on a handful of group meetings, conduct numerous interviews with the women borrowers, and spend an afternoon with one of the many micro-entrepreneurs, observing and participating in her average day. I rode along with Saturnino and observed the job of the loan officer- how he promotes microcredit and how he conducts his group meetings. At the end of each week all the loan officers head to FAPE’s office in Guatemala City to hand in reports, receipts and enter in their data from the previous week’s collection. This provided me the opportunity to meet the staff and gain further perspective on their work. To say the least, the office is a bustling hive on Fridays. The Director, Sergio demonstrated to be an inspirational and committed leader and it was clear his staff held the utmost respect for him, highly valuable in such a demanding line of work.
I set out to conduct as many interviews as possible. I talked with Namaste borrowers in their homes, during their group meetings, during promotional stops and in the bustling market. I talked with entrepreneur women borrowers that had used their credit to start a variety of businesses; selling their weavings, raising animals, selling lunches, selling vegetables, opening up small general stores, baking bread and making tortillas. What struck me was that the women already had the knowledge and capabilities to run all of these simple businesses, and the local markets were clearly active. All they lacked were the funds to get started and provide the necessary support.
The topics that I sought to investigate included such questions as; how they heard about microcredit and what they did before they received their loan, their daily schedule, other tools that could further improve their business, what impediments exist in improving their lives, the group atmosphere, and the extent of support they receive from their families. I followed up each interview with posing the question; what is your ultimate dream? The genuine responses to this question proved to impact me the most. Their responses were all very similar, very basic and absolutely obtainable. The general response was that they all wanted their children lives to be better then their own; better education, better work, and greater opportunities. Moreover, they dreamt that one day the family could all live comfortably together in a decent home. With the small credit provided to these women, for the first time, their dreams become obtainable and even realistic.
The story of Catalina Aleandria Surec is a prime example. Catalina her husband and their four children live together in a half built house. Two of the children sleep in the kitchen/living room, a room with two walls built from cinder blocks, one wall from cardboard and the fourth wall from tin sheets. The other two children sleep in the bedroom with their parents. There are two adjacent rooms that are being “remodeled” and the bathroom is nothing more then a tiny shack with a hole in the ground. Shockingly, their home was far from the worst that I witnessed during my short trip. Catalina bought a sewing machine with her first loan, and is now able to independently complete all of her works and sell them for a decent price in the market. She explains to me that she never had the opportunity to study but by selling her weavings she will be able to provide this opportunity to her children. When asked what her ultimate dream is she pondered for a moment. Up until then Catalina was able to hold her emotions back, but no longer. Her eyes watered up and over her tears she told me her dream. With the money from her weavings she could provide a substantial amount, along with her husband’s income, to complete the house. Catalina’s dream was that in her age of 51 she and her husband could have their own room.
A major vital aspect of the success of microcredit is the group lending process. After being introduced to the idea of microcredit, the women form groups of around ten. These groups are made up of family and friends in the community. A president, who leads the meetings, is elected, as well as Secretary, who documents the occurrences of the meetings. This gives the group structure, but more importantly acts as leadership training. Because the women have no collateral, credit history or guarantor, the group aspect provides a kind of peer pressure, or social collateral, to maintain payments. Every two weeks the women gather for their group meeting and to make their payments to the loan officer. Unlike a commercial bank, FAPE goes to the borrower and provides as much support as possible towards the women’s businesses.
There is also an element of support within the group. For example, during one of the group meetings, the issue discussed was counterfeit money. One of the women had received a fake 100 quetzal bill; consequently each of the women paid 10 quetzals to cover the one’s loss. The group aspect can provide interaction, education, and support not only for their business but for their lives. It provides the women an opportunity to talk with other women about their challenges, and the directions they seek to follow in their life. I believe that such interaction must be promoted, just as strongly as repayment of the loan, for microcredit to really influence development.
What then am I able to conclude for myself, and for generous people like you who seek to support those in need? The momentum for change is clearly in place. Muhammad Yunus, the father of microcredit and Noble peace prize winner, believes, “Poverty does not belong in civilized human society. Its proper place is in a museum. That’s where it will be”. You are supporting the momentum to put poverty where it belongs. Changes are products of intensive effort. These efforts are definitely taking place from people like you mobilizing the resources, from the individuals committed in the field, and most importantly by the micro-entrepreneur women struggling to combat poverty. Microcredit is hardly charity. Rather it is a method to create a level playing field for everybody, giving every human being a fair chance. My mother often referred to the saying: If you give a man a fish, he will eat for a day. If you teach the man to fish, he will eat for a lifetime. Microcredit provides the opportunity to buy the fishing pole.
I must also take this opportunity to relay a message that I was continuously told throughout my experience. The message was felt as I was offered food, drink, fruit, and works of art from the people that struggle day to day. It was felt as I was introduced as a NamasteDirect fellow. It was felt as I talked with those who have made helping the poor their life work. The message was not necessarily for me, but for me to relay to you. Thank you. Thank you for knowing. Thank you for caring. Thank you for acting.
With the Kindest Regards,Daniel Zoltani
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