Stairway out of poverty in Haiti
By Terry Provance, Oikocredit USA
Reprinted from the Oikocredit Web site.
Not far from the coast of the United States lies Haiti, the poorest country in the Western Hemisphere. In a population of 8.5 million, nearly 75 percent live in extreme poverty. And if this economic plight were not painful enough, a string of four hurricanes in 2008 brought total devastation to the small island nation.
Oikocredit has been present in Haiti since 2003 through its commitment to Bank Fonkoze, which serves over 50,000 microfinance clients through 34 branch offices. Oikocredit made its first equity investment of $400,000 in 2003. Part of the risk was shared via a guarantee from the Self Development of People Fund of the Presbyterian Church (U.S.A.).
Fonkoze is much more than a bank. Its mission stands out from other financial institutions. True to its name – which means “shoulder to shoulder” in Creole – it is an agent for social change and transformation. Director Anne Hastings explained its “stairway out of poverty” strategy, which I saw firsthand during 3 days of visits to the countryside in October 2008.
After a two hour Jeep ride from Port-au-Prince, I arrived with staff in Mirbalais. Its only bridge destroyed, we were forced to walk across the fast-moving river swollen by the hurricanes. An hour on a motorcycle, a raft across another river, and a 45 minute walk brought us to Boukankare.
Here we saw Step One in action: Chemen Lavi Miyo, Fonkoze’s program for the extreme poor. Even before women can qualify for credit, they must participate in a health and education program to assure that their children have escaped malnutrition. A nurse, aide, program director and other staff were weighing children, measuring their height, head and upper arm circumferences, and educating to improve health and food levels. Having started just last year, CLM now serves over 150 families and has transferred goats, chickens, or small merchandise so that the women can set up businesses. Fonkoze adapted this strategy from BRAC in Bangladesh.
The two organizations have exchanged staff for training and implementation in an impressive South-to-South partnership.
Step Two is called Ti Kredi.
It starts with small loans of $30 or less. Another long walk ended in the village of Dufailly where four groups, each with five women, were reporting to their loan officer to receive and repay loans. The women gave their own personal testimonies to the impact and success credit has meant and their gratitude to Fonkoze.
Step Three out of poverty is Solidarity Group Loans.
In the mountain village of Sodo, I visited the local Fonkoze branch office. We joined a festive and enthusiastic meeting of women borrowers who were practicing role play. Imagining they are all vendors in the central square, they are teaching themselves skills and empowerment tactics by challenging someone who has defecated in public. Not content to simply confront the individual, they organize to demand that the mayor install a public toilet. Their singing, testimonies, spirit and energy were absolutely infectious. Loans at this step range from $50 to $500.
Step Four is Business Development
At this final stage, owners may borrow as much as $1300. I interviewed several clients with large storefronts and listened to one borrower debate energetically with a loan officer because she believed the term of the loan was too short.
The recent hurricanes wiped out the businesses of 18,000 clients, but Fonkoze has recently received over $5 million from USAID to restore those loans. Given its strong performance and social commitment, Oikocredit has just provided a second investment of $400,000.
NOTE: We are not currently accepting applications from individual groups outside the United States. For more information, contact the SDOP staff.