Training communities to care for themselves
Hand-outs and charity can create dependency, but the local 'credit union' model instills responsibility and pride of ownership. Credit unions in Central America are totally different than the institutions that North Americans think of when they hear that term. These community credit unions are cooperatives governed by a locally-elected board of directors.
Credit union members are assisted in developing a small business plan and applying for funds. Approval for loans is given by the local directors -- the people who know their community the best! Credit union members also receive training in small business skills, literacy, mathematics, credit union management and sustainable agriculture management.
In April 2003, three original Carpenteros and three new members made a 'fact-finding' visit to several communities in Honduras and El Salvador, to meet with credit union directors and beneficiaries.
-The average loan ranges from $300-500 US. Depending on the rules set by the local board, a borrower must first save a quarter to a third of the money they wish to borrow. Loans are usually re-paid within THREE MONTHS. Defaults are rare, but when they do occur are covered by the 'Mercy Fund' required in each credit union.{mosimage}
Often, the credit union directors are elders, deacons or pastors of local churches. These church leaders say the credit union is one of their MOST EFFECTIVE means of evangelism, because people in their community can actually witness the LOVE OF JESUS CHRIST BEING PUT INTO ACTION.
In El Salvador, the majority of credit union members and directors are women - often middle-aged widows who lost their husbands during the civil war. {mosimage}Women and Men in Action - the 16 "Women in Action" agreed to change the name when two men asked to join - is located in a ramshackle neighbourhood in San Salvador. The Carpenteros met with the local directors in the home of Rosa, a 40-something widow and the current credit union president. Rosa used her loan to buy an old gas stove and now earns a living by baking tortillas to sell to neighbours or at the market.
One by one these people told us how the credit union has transformed their lives and their community, by enabling them to afford food, medicine, and education for their children. Gloria is a woman in her mid-50's who sells cheese, cream and milk at the market. This is what she told us. "I tried to get a loan from the bank but was not able to. The credit union program has helped me a lot. I am a hard-working woman. I am responsible. I am paying back my loan just as I promised. Just this small loan, so I can have my business at the market, is keeping me alive. Thank you."
The nodding heads confirm that Gloria's words speak for virtually everyone huddled in this dark, smoky room.
This scene was repeated in community after community, where the Carpenteros met honest, hard-working and deeply appreciative people who aren't looking for a hand-out or charity - just the OPPORTUNITY to help themselves and their family.
One such recipient is Maria (not in photos), a shareholder in the Monte Carmelo credit union in another neighbourhood of San Salvador. Maria operates a beauty shop in her home. Her loan helped pay for equipment and supplies.
We asked Maria what she would say if given the opportunity to speak to those who support the work of the Carpenteros and the Christian Reformed World Relief Committee.{mosimage}
This is her message: "I am a single-mother with two children. My daughter is disabled. I am helping three nephews through school. My mother lives with us too. I thank God that I can partner in the credit union to increase my income and sustain my family. I thank God that I can now afford the treatments for my disabled girl. And I thank you from the bottom of my heart for your support."
These are the stories of but a few of the VERY REAL people -- brothers and sisters in Jesus Christ -- who will have a brighter tomorrow through your support of events such as the Spirit and Sport Christian Sports Celebrity Dinner, the Valentine's Bistro Carpenteros, and other events and activities in support of local credit cooperative in Honduras and El Salvador.
