Message-ID: <19960425211421011.AAA163@srv3> Date: Thu, 25 Apr 1996 21:14:21 +0000 From: Joaquim Moura <mailto:joaquim.moura@PERSOCOM.COM.BR> Subject: Brasilia microcredit project To: Multiple recipients of list DEVEL-L <mailto:DEVEL-L@AMERICAN.EDU>
Working within reallity it is not always a rose garden...Although I know I have been trying to impress you with descriptions of a ever succeeding project here, in Brasilia, more precisely in Santa Maria, I must tell you that we are now facing some stormy clouds...
Since the project (microcredit and popular cooperative organization) was doing fine, and the Governor has asked to increase the numher of benefitiaries (from current 400 to nextly 3,000 poor families - buying their basic food basket by 30% of its commercial price - the food is donnated by the local Government and the money goes to be lent to the local micro entrepreneurs (or going-to-be), following the Grameen Bank model). Each community benefitiary of the program (the poorest families) will receive the donnation during two years; then the Government stops to give food but all the money that was introduced into the community (the microcredit cooperative) will stay there to keep fostering local endogenous development... Since September 95 (the first food sale for the poorest) the cooperative has gathered US$ 33,000, has $12,000 lent to the local micromicro entrepreneurs (about 50 borrowers), has $20,000 in the bank (it is not easy to stimulate people to organize groups to borrow money in a solidary garantee system, and they are not used to trust themselves etc...). But slowly, as the success histories are being spread through the community, soon more and more poor people will come for the $200 (or maybe more).
But this increase of the clientele (and of the money involved, from 5,000 to 50,000 dollars to be lent every month) attracted the attention of other people (from a NGO very close to the Governor), till then very far from the actual proccess running there, at Sunday afternoon and/or Wednesday evening meetings. So, the NGO's staff, perceiving the potential of the project, decided to participate more closely in the meetings, the decision making process. And they are really doing it, my friends...
As they are "very close" to the Governor, all the governmental technicians working with this project must let them "participate" as they want... The community leaders are chocked, but they cannot complain because they fear to bother the Governor and loose the food donation. And of course there are some members of the cooperative that support the new "collaborators"... For instance, the NGO "suggested" to the cooperative that they should increase the amount lent to the borrowers: from R$200 (=US$200) to R$1,000. We - I and Jose Ivan - who were there, with the local people since April or May 1996 (do you remember our Brasilia E-News?), helping them to organize their cooperative, organize their credit system, supporting their monitoring proccess etc., disagree with this raising of the limit, because this will put appart the "poorest of the poor", for many reasons? Should I explain? Also the cooperative leaders are affraid of this increase, because it will reduce the number of benefitiaries, increase the risk etc... But as some people appreciate the idea of getting $1,000, they are supporting the increase. The former limit ($200) was decided in a democratic meeting in September...
I will not write more details about this trouble... I want to keep myself really objective about the course of the next facts... If the arrival of this NGO will prove to be a positive fact, I will notice and tell you. If not, I also will do it... Meanwhile, we (Jose Ivan, I and our small Committee) will keep working with some groups (of cooperative members), helping them with "parallel", "complementar" issues, which we know the people from this NGO are not worried about... For instance: community gardens, youth development, impact evaluation... And we could include: technological support (we are bringing the University of Brasilia to help the program in Santa Maria), marketing support etc... And we will be monitoring the NGO activities, and as soon (if ever) they quit, looking for other opportunities to lead well succeeding projects, we will be there, as we are also helping other groups, in other poor communities around Brasilia... (Visit our home page to know more about our programs...)
Thank you for the interest, please, send us your oppinion and support...