ECLOF
Philippines has supported 57 solidarity groups out of 132
active projects within the past three years of operations.
All projects are unique.
Solidarity
groups are made up of small entrepreneurs that have been
in business for some time and are willing to venture into
more productive activities. These groups have no legal entity
but are knowledgeable in the trade of their businesses where
most of their capitalisation comes from savings, or loans
from private individuals or moneylenders who charge high
interest rates.
Most
of the solidarity group members are market vendors, small
manufacturers or traders. Often, the businesses are run
by family members and close relatives, or friends and colleagues
who take the initiative to venture into several small businesses.
Among the noted solidarity groups of ECLOF are three groups
with contrasting characteristics.
Aguila
and Partners
Naty
Aguila and her four women neighbours and partners first
took a loan in 1998 to purchase two sows each, for farrowing.
With the funds, they also had to budget for the improvement
of their existing pigpens, and the supply of feeds and medicines
for at least four months. Now on their third loan, Naty
and her partners are experts in raising pigs from the delivery
of piglets to fattening. They have invested most of their
time in this livelihood project, which has reaped good economic
returns for the women. Naty has also become the local ‘vet
med’ who is there to assist in delivering the piglets
and caring for them if they are sick, as well as giving
them needed vaccinations and medicines.
Osorio
and Partners
The
group is composed of six young people in the Makati District.
Osorio and Partners, also known as Mamabelle’s Kitchen,
was established in 1997 mainly as a delivery and take out
food outlet of ‘binalot’ specialities of simple
foods such as tocino, tapa and eggs.
The
business started by delivering lunch to employees and workers
in the neighbouring building. The group started with a meagre
capital, just enough to revolve their capital within one
to two days. At first, the group utilised an apartment building
as their office, kitchen and stockroom. Since most of the
group members are ‘provincianos’, the place also
serves as their home, resulting in establishing a certain
degree of closeness and friendship. Their work tasks are
divided equally, depending on their skills and capabilities.
As
increasing orders came in, the group realised the need to
expand their capitalisation by obtaining a loan. In their
search for financing, they found ECLOF to be more appropriate
to service their needs with its flexible collateral terms,
compared with banks. In 1999, the group was able to take
a Php100,000 loan, payable within one year. The group used
the loan to acquire better kitchen facilities and relocate
their business space to provide better visibility, and therefore
the opportunity for the group to expand their business range.
By the end of the year, the group was making a minimum of
90 deliveries and serving 45 dine-in meals a day, with a
turnover of three persons per table. As it had fully repaid
its first loan, and realising their potential, the group
applied for, and last May received a second loan to expand
the dine-in facilities for an additional 12-seat capacity.
To
date, the group has established itself as a credible and
reliable food service provider in the Makati area. In addition,
the group is earning a decent income for all its youth group
members. Now, Mamabelle’s Kitchen has acquired four
motorcycles that it uses for deliveries, as well as a good
kitchen facility and a well equipped dine-in space.
Nam-ay
and Partners
Nam-ay
and partners consist of five urban poor women residing in
one rural barangay of Antipolo. The use of a loan is not
a direct investment from ECLOF to the group’s business
joint venture, but rather the loan of PhP100,000 from ECLOF
is utilised by Nam-ay and partners as revolving capital
to lend among themselves. This group of enterprising women’s
individual small businesses consist of a sari-sari store,
rice dealership, bakery and the selling of potable water
in the community.
From
the loan, the group is managing its proceeds like a small
credit facility for the five members. They also charge monthly
interest plus a service fee and savings. A member of the
group is in charge of the loan process and assigned to handle
the daily transaction of collecting and monitoring projects.
Each member can take out a loan not exceeding Php20,000
payable daily within three months. Each individual member
of the group keeps track of their daily remittance record,
to include the daily amortisation, interest, penalties and
savings. The person in charge collects what is due at the
end of every day and deposits it in the bank on the following
day.
The
loan from ECLOF is payable within six months, after which
the group will evaluate their program and, if need be, seek
another loan from ECLOF. By doing so, the women claim they
are free from usurious moneylenders and are able to save,
compared to their previous practice of borrowing from five
to six people.
Cut
and keep
We
are all aware that the world’s rainforests are disappearing.
Yet, over 100 million people–mostly indigenous–rely
on tropical rainforests for their subsistence. They are
forced to strip forests, or have them stripped, in order
to get an income. The root of the problem is poverty and
the lack of a durable alternative.
For
the last seven years, a Dutch group, Interchurch Organization
for Development Co-operation (ICCO), has supported various
durable forest management programmes in places like Papua
New Guinea, the Solomon Islands, Brazil, Surinam and Cameroon,
where the production and marketing of wood is central.
ICCO
has recently published a brochure, ‘Cutting trees to
keep the forest’, in which it sets out its experience
along with its partners in the South, and outlines lessons
that have been learnt.
A
durable forest programme is not easy, says ICCO, but the
rewards can be great. They include lasting employment plus
timber for building houses and other infrastructures. In
addition local communities have a say in how their forests
are managed. All this boosts peoples’ self-confidence
and skills in business and land management.
‘Cutting
trees to keep the forest’ is aimed at project leaders
in countries of the South who are working with or considering
embarking on small-scale timber production in combination
with community development.
‘Cutting
trees to keep the forest’, is available from:
