Director's message

Commenting on rural financial services for the poor in the lead article on this page ("Poor excluded again"), José Luis Pereira Ossio, the Executive Director of ECLOF Bolivia (ANED), argues that to make rural microfinance services economically and socially profitable, it is necessary for government policies to contain at least minimum conditions that support the sector in both the financial area and related services of technical assistance.

José Luis calls for a combination of different financial instruments as part of a strategy to establish sustainable institutions and services. He highlights the risks that come from focusing solely on financial efficiency indicators. José Luis believes such an approach does not address the need for structural changes in income generating production patterns; this, in turn, intensifies economic and social differences.

With a loan portfolio of US$7.8 million and 34,000 clients, 91% of who are in rural areas, these are important considerations for the ECLOF family as we prepare a new strategic plan.

A constantly asked question is whether ECLOF keeps a record of and follows clients it has worked with for a long time. Given the extra resources this would require, there is no systematic follow up. In this issue, however, we are pleased to share with our readers the history of a farmers' organization in the state of Bahia, in north-east Brazil. ("Seed money for sisal", p. 6).

The publication of this issue of New Horizons coincides with the month in which World Aids Day (1 December) is marked. The horrendous impact of the HIV/AIDS pandemic on populations in the world, especially in Africa, requires that we too play our part in being part of the solution. ECLOF is working with many poor communities devastated by the effect of HIV/AIDS. We consider that financing the micro-enterprises of poor families, who can then increase their incomes, is part of the solution to HIV/AIDS. We will need to develop strategic partnerships with organizations that are taking a lead in awareness raising on preventive and curative measures for HIV/AIDS, so that the clients and communities we work with become fully aware of their role in HIV/AIDS prevention and treatment, and the services that are available to them.

Muhungi Kanyoro