Kazama Grameen Inc
Columban Fathers, Hermosa, Bataan and Mabini, Pangasinan, Philippines
INTRODUCTION
Kazama Grameen is a project aimed at the rural poor within the communities where it is established. Its target beneficiaries are mostly women. It provides small loans which help to start small businesses and provide families with effective micro-credit operations for the purpose of income-generation and livelihood projects. Later, it provides multi-purpose loans for immediate needs such as health, education and so on . Not only do these loans improve the economic situation of the beneficiary but they also have a knock on effect in that they teach people to save and manage money; unite the community and by giving people a chance to prove their capabilities, they help to restore dignity and also empower beneficiaries.
PROJECT SUMMARY:
Kazama Grameen targets the rural poor of the areas Mabini,
Hermosa and Pangasinan in the Philippines. Kazama Grameen now has 29
branches in so many municipal areas. Thanks to misean cara - new branches
have been founded in Bataan and Pangasinan provinces (Mabini, Bani,
Pilar and Hermosa). Barrios/ villages normally have about 25 to 35
members. When a village gets to five or seven groups
it becomes a "Centre".
The Grameen Bank is established in the barrios (villages) of these
towns and usually caters to 25-35 members. Members are divided into
groups of five and when a village gets five to seven members it
becomes a "Centre". This Centre often revitalizes villages dying
from migration. The Philippines has one of the highest unemployment
rates in Asia and 2,688 people leave the country every day in search
of labour elsewhere. The Centre plays a vital role (although not
it's primary role) in the village in that it helps to restore life
and hope. Each centre has a Centre Chief, a Group Chairperson, a
Secretary and a Treasurer. These four people are all members of the
local Grameen Bank and work in a voluntary capacity.
The key to success in KGI is the Centre Manager. These are young
college graduates. Some are not, however, but we do insist on about
two years of third level education. So beginners will be about 18 or
19 yrs old at times. They must pass a fairly tough entrance staff
exam. Then they do 21 weeks of on the job training in community
organization, develpment theory, accounting records and Grameen
programming.
Before one can become a member, Centre Managers conduct a needs
assessment of the community so that they reach the potential target
population, i.e poor rural women. They use strict indicators of
measurement such as House Index technique, per capita income,
marketable assets, etc. Then in order to receive loans the women go
through intensive training about the rules and procedures of KAZAMA
Grameen as well the seven evenings.... that end in the often feared
Group Recognition Test. If one member fails, then the whole group
has to do the seven evenings all over again. Furthermore, regular
seminars are given to members to develop both their business skills
and foster social awareness so the project is continually involved
in the capacity building of its members, both socially and
economically.
There is a weekly meeting of Grameen members where discussion
usually centers on the meaning of money, work, life, children and
any other problems that are real for the members. This type of
structure lessens the normal risk attendant to bank loans as well as
fostering trust and unity within the group.
Each week one fiftieth of the loan is repaid and in the final two
weeks the annual interest of 20% is repaid.
There are two types of loan offered to members. The first is the
Project Loan which is strictly for the purpose of income generating
projects where each member has a simple project that earns money for
her family. Each member takes personal responsibility for the
efficient use of the funds they receive but they must use the funds
for work they are familiar with such as farm work, home service,
market service and so on.
The second loan available is the Multi-purpose Loan which can only
be received if the member repaid her Project Loan by 100% and had
95% attendance at the weekly Centre meeting. These loans are
specially designed for the immediate needs of clients, which
although varied is generally geared to rural living such as getting
the children to school or changing a house from concrete to bamboo.
No loan is released without the approval of the whole group of five.
Since each person has his/her own individual passbook, members are
terribly concerned and responsible. If perchance one cannot pay the
weekly amortization, then the other four in the group must pay it.
This pledge on the very first day makes for a strict credit
discipline members won't forget.
The project provides continued access to integrated microfinance and
social development services and has proven that when given the
chance women have both the ability and desire to create and sustain
income generation, improving their own and their families' economic
situation. This helps to empower those women involved as the project
is run by them and owned by them. It has also helped to unite the
communities because they are working together to reduce poverty in
their areas and these small businesses established with the loans
can help to do this while at the same time restoring a sense of
dignity to families and individuals.
CONCLUSION
Kazama Grameen targets those most affected by poverty i.e. women.
Through its micro-credit schemes it gives women an opportunity to
provide for their family. It also increases their capacity and sense
of worth as they create and maintain small businesses by way of
which to do that. Kazama Grameen also allows the voice of women to
be heard in that it is they who decide what project they will get
involved in and they who decide and prioritise how their money shall
be spent. Sometimes it only needs a small start to create something
large, Kazama Grameen through its loans, provides this start.
Below is a personal comment from the Fr. Sean Connaughton SCC :
We have seen many years of "dole out" even in international groups.
The sociologists and pastoral organizers always condemn it. Grameen
insists people are more resourceful than you think. The do it
yourself in a self-sustaining capacity is inate in us all. Hence the
basic policy: do something you know about.
Some will say: "I know nothing." One devastated widows comes to my
mind. She could do nothing and knew nothing, she said. The Centre
Manager spent time in the shabby bamboo house. The woman spoke about
her grandfatheer who made clay pots. "Did you help him" she asked.
"Of course... that's all we did", was the reply. Within a month this
woman (ex Lumang Nayon) had a two meter pile of variable sizes
outside her house For Sale. All that was needed was ten euro worth
of steel moulds from the Chinese Foundary.
Micro Finance or Micro Credit is inspired by Professor Muhammad
Yunus of Bangladesh, by "Small is Beautiful" of E.F. Schumacher and
the many pages of the Bible we know well.