She also called on YWCAs around the world to create new coalitions: “If we are involved with microcredit why not create alliances with Women’s World Banking, the Ecumenical Church Loan Fund, and others whose trademark is microcredit?”
Ms Pilar Ramirez from Bolivia shared the platform with representatives of Christian Aid in a plenary session on microcredit.

Lives changed
Ms. Ramirez outlined the history and concept of microcredit. She also described the methods used to deliver small loans and achieve good repayment rates, especially of loans to women. She said microcredit for many poor women around the world had become an alternative and affordable source of much needed cash for income-generating activities. Pilar Ramirez quoted the Kenyan researcher and female activist, Achola Pala Okeyo, who wrote that having access to credit, “relieves many poor women from the daily worry of living without money”. Ms Ramirez gave examples from her own involvement with ECLOF that demonstrated the truth of Achola Okeyo’s words. In the following discussion those working for YWCAs in the field of microcredit confirmed that this form of microfinance had been very effective in changing the lives of women in their countries.

Credit and Debt
In the discussion that followed Priscilla mentioned that both ECLOF and Christian Aid are working towards the same goal, which is the alleviation of poverty. Even though ECLOF is involved in credit programmes and Christian Aid is campaigning for the cancellation of unpayable international debt, there is no contradiction in our two kinds of work.

Ms. Jenni Richmond of Christian Aid said she recognises the effectiveness of credit as a development tool but currently Christian Aid is campaigning for the cancellation of debts, which represent money borrowed by nations on behalf of their people. These loans had never been asked for by the people nor have they benefited from them. However, these citizens now bear the brunt of paying back these loans that, with interest, have now become enormous.

ECLOF, on the other hand, gives credit to those who require and request capital, and who are willing to take responsibility for their own development. Having used loans to increase their own earning power, ECLOF clients can, with dignity and self esteem, repay their loans and so help others in need.
In a revealing exercise, Ms Jenni Richmond asked those in the audience who had never taken out any kind of loan including those available through credit cards, to sit down. Only 6 people out of the 400 participants did so, which showed that almost all those present lived on credit in some form. Then those who had taken out credit through choice were asked to sit down. After they did so, only 10 women remained standing and they were told to sit if they had been able to pay back their loans. All sat down.

Christian Aid, said Ms Jenni Richmond, was campaigning on behalf of those who had never agreed to loans for which they were now responsible, and who had no means to clear these debts. The 400 YWCA Council members made a long paper chain as a symbol of the chain of debt that shackles millions today and resolved to support the international campaign for debt cancellation.

Workshop
The theme of microcredit and how it works continued in one of the Council’s workshops. Panel members described micro credit programmes in which they were involved. Alice Abok, YWCA Kenya, described their attempts to ensure clients’ business activities were sustainable. Rebecca Mulwana, YWCA Uganda, spoke of the training they give in business management, leadership and gender awareness. Mikelia Wickremesinghe, YWCA Sri Lanka, explained the need for simple procedures and documentation and showed as examples the forms and the passbook they issued.

Priscilla was able to describe the impact of microcredit programmes and outlined the factors that promote the success of microcredit programmes. YWCAs are members of the NECs in countries like Myanmar, Kenya, Zimbabw and Sri Lanka. Some have also taken loans to increase their infrastructure facilities to generate income for YWCA activities. In particular Kenya YWCA has been successful in not only financing but enlarging their activities through the income from the hostel for which they had borrowed. She encouraged the YWCAs to work with National ECLOF Committees in their own countries and to train clients in entrepreneurial development, vocational skills and leadership development which is YWCA’s specialisation.

Discussion then centered on how to determine realistic interest rates taking into account the sustainability of the clients and the MFIs, obstacles that can be encountered in a microcredit programme, rural credit, credit for refugees or migrant workers, and savings.