Director's message

In the recent past, there has been considerable discussion over the way in which some countries and regions are lagging behind in meeting targets to reduce poverty and hunger. The same is true concerning the response to the growing impact of HIV/AIDS. Whole societies are affected by this pandemic, with economic and food production particularly hard hit.

This issue contains articles that reflect these issues. There are also details of the impact food subsidies can have, as well as the problems that some rural small-scale farmers face in marketing their produce.

Against this background, I am reminded of the front-page article in the December 2003 issue of New Horizons. There, JosŽ Luis Pereira, the Executive Director of ECLOF Bolivia (ANED), reflected on the challenges of providing rural credit. He said that microcredit practices have created successful institutions but that these have mostly had little impact on rural grassroots people. JosŽ Luis believes some basic conditions need to exist before anything will change and the living conditions of the rural poor improve.

In 2005, ECLOF will join others in marking the United Nations International Year of Microcredit, and celebrating the achievements of microcredit programmes. However, we should remind ourselves that for microcredit and related services to make a positive developmental impact, they must be accompanied by other policy measures. If they are not, then JosŽ Luis Pereira's description of the ways in which the rural poor are losing out will continue to be true.

The ECLOF International Board has approved ECLOF's strategic plan for 2005/9. The plan focuses on four themes: sustainability, outreach and impact, resource mobilisation, and relationships. The Board set two key targets: to maintain at least 50% of financing in rural areas, and at least 50% of total lending to finance enterprises for women.

We also share with readers the story of Cristiane Jesus Santos, a loan officer with ECLOF Brazil (CEADE). Many times, we run the risk of focusing only on clients and forgetting those who deliver our services. This can be a risky job. Cristiane's story is amazing and it challenges us all to go the "extra mile". As Cristiane goes about her job, she does not simply deliver credit; she truly accompanies her clients.

We will continue to share stories like Cristiane's. In every country where we work, ECLOF hires local staff who are paid from interest income from clients. Our staff are also affected by many of the social issues that ECLOF works to overcome for its clients: gender discrimination, health care, access to education, violence, the need for more income. I take this opportunity to thank ECLOF staff and committee members everywhere for their dedication and commitment to our mission of providing fair credit for human development.

Muhungi Kanyoro