1. Background of the Grameen Bank
As we listened attentively in Muhamad Yunus's talk during the closing day of the Congress that was called "The Week of Knowledge", held in April in the City of Mendoza, the Bangladesh-born Grameen Bank and today extended to the whole world, it is a powerful tool for the promotion and development of poor communities.
This entity, with its policy of microcredits by groups of people jointly liable for payment, has helped thousands of people to generate income through their own microenterprises, as a way to break the vicious circle of poverty, that is, the Mechanism by which those who are poor are not subject to credit and therefore can never take off from that initial situation.
For Yunus, an economist originally from Bangladesh and graduated from the University of Washington - USA, the idea of guiding the economy towards a concept of solidarity began in 1983, 20 years ago. He did not agree with the dependence that alms and subsidies generated on the poor. He had spent 9 years giving credits on an experimental basis until he decided to create a methodology that was applicable in more than one place and which he called Grameen Bank - grameen means village. During his first forays into this new economic model, the Asian economist decided to lend $ 27 to 42 people to invest in small businesses. What can be seen as so simple and with little hope of success is already in use in 66 countries and has a bad debt history of just 2%.
Curiously, the so-called "Bank of the Poor" has granted loans mostly to women around the world - 95% -. For example, in Mendoza there is only a group of 4 men from Palmira who work with the Grameen Foundation, the rest are women. And although Grameen may be small in terms of the amount of loanable capital compared to other banks with the same geographic scope, its microcredits reach sectors that no commercial, private or state bank considers clients, millions of people very poor.
For foreign benefactors, interested in being able to participate in the implementation of the system in their respective countries, it is a requirement to prepare in Bangladesh for a certain time, the training consists, among other things, of getting in contact with people and seeing how the methodology works in the practice.
2. Microcredit entities in Mendoza
In our province there is the situation that there is an enterprise that uses the name and methodology of the Yunus bank, but others have also emerged with very similar methodologies that do not use the Grameen name, among them the entity Juntos, sponsored by the Foundation Mendoza company -FEM- and another entity associated with the Church of the Jesuits. All these ventures are focused on the poorest neighborhoods and settlements in the province. We believe that the phenomenon is just beginning in Mendoza, surely if the methodology is affirmed and gives the expected results, more players will emerge in this market.
Next, we are going to describe the operations of the 2 best known: Grameen Mendoza Foundation -major amount of information collected- and the entity JUNTOS -short summary-
Grameen Mendoza Foundation
In Mendoza the activities of this entity are similar to the other replicas of the system; In April 2000, the creators of Grameen Mendoza carried out the training to have the right to apply the Bangladesh Bank method and in June of that same year they delivered the first loans. Since then, microcredits have been granted in different districts of the province of Mendoza, such as:
- Palmira (San Martín), a rural area about 50 km from the Capital city, with the highest unemployment rate in the province La Gloria neighborhood (Godoy Cruz), a distant neighborhood about 3 km from the Capital city, with a high level of conflicts and internal violence.Uspallata (Las Heras), a rural / tourist area about 100 km from the capital city, where there are very few sources of work that do not derive from traffic on the international route to Chile. Chacras de Coria (Luján de Cuyo) Potrerillos (Luján de Cuyo)
These microcredits have been applied to micro-enterprises such as: sewing clothes by load, sale of slippers, eggs, clothing, bakery products, laundry, herbalism, handmade soaps, expansion of merchandise from stores, kiosks, bookstores, etc.
The Foundation's services are specifically aimed at unemployed women or women with micro-enterprises underway, with or without an unemployed husband, with a family group in charge and residing in a specific neighborhood. It is also a requirement that they have primary schooling and know some crafts, that they live with many women from their neighborhood in identical or similar situations; it is not an impediment to receive minimal social assistance. Its services are also directed towards the segment of the population called "the new poor", who belonged to the old middle class that is slowly disappearing.
A more detailed summary of the required profile includes:
- Low-income people, preferably a woman of legal age (between 18 and 65 years old), with property or rented, loaned and / or shared housing with a minimum residence of 1 year Heads of Household who receive an income of less than $ 300 per month, which It is equivalent to approximately US $ 100 Women entrepreneurs, with capacity for group work and ease in adapting to new activities Women entrepreneurs who have experiences of individual work projects Women who wish to modify their economic and work situation based on their effort Trustworthy women for a group of people (at least four) and who also trust other people Solidarity with those people who will form the group and who have discovered some capacity or personal vocation that allows them to define a sustainable enterprise.Although the previous points have specifically talked about women, the Grameen methodology is flexible for financing micro-enterprises that, once the foundation's requirements have been met, are carried out by men.
To enter the system, the person must be part of a solidarity group of no less than 5 people and up to a maximum of 9 people. In turn, these groups unite, from 8 to 10, thus generating a center.
The process carried out by the Grameen Mendoza Foundation includes the following stages:
- Collection and interpretation of statistical information On-site investigation of the selected area, determining possible deviations Massive convocation in the area Selection and formation of groups of at least 5 members of joint responsibility Training of groups for 2 weeks Personalized knowledge of each borrower and their problems Evaluation of projects to be financed Evaluation of group cohesion and identification of the Grameen principles and adherence to the methodology Loan delivery in a «2-2-1» form Weekly follow-up in center meetings and individual supervision by the field operator and coordinator of each group or center Weekly collection of returns
Mendoza Business Foundation -JUNTOS
"We grant the credit to entrepreneurs who know what they do, at least we ask for 1 year of experience in the activity being developed," says Roberto Roitman, president of the entity. TOGETHER, like Grameen, it does not ask for collateral like banks, again here the way to guarantee is by groups, that is, the debtors are jointly and severally guaranteed among themselves. Until May 2002, JUNTOS had assisted 1,004 entrepreneurs from Mendoza, the vast majority of whom were heads of households with large families with a varied profile: artisans, grocers, carpenters, dressmakers.
Also with information as of May 2.002 we can summarize the so-called "Group Credit Line" of this entity:
- Each member of the group of entrepreneurs has access to between $ 300 and $ 1,000. The fees are fixed and in pesos. Entrepreneurs with an independent activity and at least 1 year of experience in the field are required. It includes those who are in Codeme and Veraz. The members micro-enterprises are used as guarantors since no guarantees are requested; The guarantors and applicants have access to credit. Group members must live nearby and not be related to each other.
3. Needs of the families of students from urban-marginal schools
Unemployment is a phenomenon that has spread strongly throughout our country. Hand in hand with neoliberal policies of the 90s, unemployment repeatedly exceeded the 20% rate in our country and poverty grew according to official and private, national and international figures, that is, there is practically unanimity on the phenomenon. Currently more than 50% of Argentines are considered statistically poor, that is, they do not exceed a minimum income level called the poverty line. Vast sectors of society have come to fall below this line, especially the so-called new poor, households with parents who are employees or former public employees or from other activities that previously received middle-class incomes and that in the last decade saw deterioration. their living standards.
The same problem occurs in Mendoza, although without reaching the national average, but also with very important pockets of poverty in different departments.
Las Heras, the department where the school where the author of this monograph teaches classes is located, is undoubtedly one of the departments most affected by unemployment and poverty, the number of people who subsist thanks to different unemployment plans in force being very high nowadays. In this way, the students - and their respective families - both from my school and from others settled in this department suffer the problem firsthand - they eat poorly, suffer from cold, get sick more often than normal, etc. Indirectly, teachers also suffer, it is very difficult for children to buy the photocopies that we leave them to study and not to mention that they buy a book, there are children who may not have had their own book throughout their school years.
4. DESPEGAR Program for School 4-157 in El Plumerillo, Las Heras
The schools feel all the problems described in the previous point perhaps better and more directly than the municipality, since they see the reality of their students day by day and sometimes suffer because they cannot do enough to avoid situations of hunger and cold. of the boys, the situations of violence generated by the environment that affects them and other evils derived from poverty. In this way, given that the municipality cannot reach every corner of the department due to physical impossibility, what better located than schools to reach each of the families of its students with programs that promote micro-enterprises, providing them with a first advice on the feasibility of their projects and serve as a link with microcredit entities.
The central idea of this proposal, which we have called the DESPEGAR Program, is that School 4-157, whose modality is "Economics and Management of Organizations" and its orientation is "Management of Micro-enterprises, SMEs and Cooperatives", fulfill the role of link between the microcredit entities of our province and the projects of the students' families and their neighbors. Given that our school has subjects related to the Formulation and Evaluation of Projects, the Management of Microenterprises, and others related, that is, it has teachers and students -once approved in these subjects- who know about these topics, it would be feasible for these actors use their theoretical knowledge to help different members of the surrounding communities - families of students,school neighbors - obtain funds to develop micro-enterprises -new or expansions of existing ones- in order to improve the existing socioeconomic situation in the school's area of influence. We must point out that a very high percentage of the parents of the school's students are currently supported by unemployment benefits; With this program, students could encourage their parents to present projects so that, after an analysis of the pre-feasibility of the school, they can present them to the microcredit entities.We must point out that a very high percentage of the parents of the school's students are currently supported by unemployment benefits; With this program, students could encourage their parents to present projects so that, after an analysis of the pre-feasibility of the school, they can present them to the microcredit entities.We must point out that a very high percentage of the parents of the school's students are currently supported by unemployment benefits; With this program, students could encourage their parents to present projects so that, after analyzing the pre-feasibility of the school, they can present them to the microcredit entities.
In addition to genuinely helping to alleviate unemployment, the program will raise the concept that the community that surrounds the school has of it, since both parents of students and neighbors will observe that the school is not only fulfilling the very important role of educate their children, but is also helping their parents to live with dignity. We do not mean that today the school is not valued by the community that surrounds it, but through programs like this it would be even more valued.
The third objective is to instill associativism between the parents of the students among themselves - if they live nearby - and their neighbors, since in groups it is how they would receive the credits and it is in solidarity that they respond to the obligation to cancel it; This is the modality most used by microcredit entities, if one member of the group does not pay their fee, the other responds, this is how this tool has been successful, people pay to prevent another neighboring family and the entire group from staying no credit.
Finally, 3rd year students from Polimodal will be able to apply the theoretical knowledge obtained in matters related to micro-enterprises or projects, which is a valuable contribution to their future employment.
For the 4 objectives mentioned, we believe that the project is worth trying and it will surely garner additional support from different NGOs or the Government, whether financial or otherwise, support that will give it more sustainability.
Some details of the implementation of the DESPEGAR Program
- It will be promoted among all the parents of the school students, from 8th year to 3rd year of the Polimodal. The program will also be promoted in the neighborhood that surrounds the school, through different means of dissemination that will be used by the teachers of subjects such as Formulation and Project Evaluation, Micro-enterprise Management, and other related ones will act as pre-evaluators of projects -to discard ideas that are not possible or to detect rectifiable errors-, the final evaluation will be made by the microcredit entities that receive the applications. Those named above will advise microentrepreneurs in obtaining financing when they need advice on management, accounting and taxes, etc. and in general they will periodically monitor the status of micro-enterprises,given that the ultimate goal is that these microenterprises do not disappear shortly thereafter. 3rd year high school students, who already have knowledge of Project Formulation and Evaluation - seen in 2nd year - and are gaining knowledge of Microenterprise Management - see in 3rd year- they will also participate collaborating with the teachers to pre-evaluate and especially as disseminators of the program. It will be managed, before the General Directorate of Schools of the Province, before the Municipality of Las Heras or before NGOs and / or interested companies, funding for the program, especially to pay teachers who will dedicate several hours to this program; Although to the extent that there are no funds, the task should also be carried out by them ad-honorem, the school will not be the guarantor of the credits,only link between the lender and the financed families.
5. Extension of this project to marginal urban schools in general: the DESPEGAR Network
This proposal is extended to all schools that have the “Economy and Management of Organizations” modality, regardless of their specific orientation –in general the modality's orientations are related- in the province of Mendoza; The project will be disseminated by different means in order to promote its widespread adoption and also obtain the necessary constructive criticism to improve the idea.
Additionally, those schools located in urban-marginal areas with a modality different from that of “Economy and Management of Organizations” that also want to participate in the DESPEGAR Program will be welcome, but they should try to associate with schools with the aforementioned modality so that teachers of the latter help them in the task of pre-evaluation of projects.
It is then proposed to create the "DESPEGAR Network", thus baptizing the conjunction of schools that decide to adopt the DESPEGAR Program for the benefit of the communities of students and neighbors that surround them. "Red DESPEGAR" could be the entity that brings together the schools, in the form of an NGO, which disseminates their work and channels new initiatives related to the project.
The "DESPEGAR Network" could also have the important function of organizing fairs or other mechanisms to facilitate the commercialization of the products that arise from the ventures financed by Banks of the Poor with the families of the students and neighbors of its member schools.
Implementation schedule
The DESPEGAR Program will seek to be implemented immediately in the school where the author of this monograph works as a teacher. In fact, in the next few days we will begin, at the institutional level, contacts with Grameen Mendoza to see how the project could be implemented.
On the other hand, the establishment of the DESPEGAR Network will take more time, the optimum time necessary to observe the operation of the experience in predetermined pilot schools.
Process and Result Evaluation
We believe that in a period of 1 year, initial conclusions will be reached on the proper functioning of the initiative in private schools. To evaluate the functioning of the DESPEGAR Network as a whole will take a little more time.
6. Conclusions
Through the DESPEGAR Program, the urban-marginal schools that adopt it, starting with 4-157 in El Plumerillo, Las Heras, where the author of this monograph teaches, would add even more value than they currently contribute to their communities of influence. since without neglecting their main function of educating, they would help to generate genuine employment for the parents of their students and for the neighbors of the school.
What better educational example for students than to observe the school's work by carrying out programs that promote values, such as the noble activity of undertaking to overcome situations of economic weakness, of associating with neighbors for a project and of being supportive also among neighbors for payments, among other very important values that the student would not only hear in class but also experience! Jorge Bucay said it during his talk, also at the same congress "Knowledge Week", when he recalled Jaime Barylko, arguing that the school should also educate in values and not only in conceptual content, especially Bucay said teaching a lot about ethics -what is right and what is wrong- and on learning to share. And as we said above, microcredit programs have a lot about values,especially learning to share, since when a member of the group thinks about not paying his credit, he immediately realizes that if he does this someone will have to do it for him, also putting the credit of the whole group at risk. And people learn to share, the Bank of Bangladesh shows very low bad debt rates throughout its history.
BIBLIOGRAPHY
- http://www.grameenmendoza.org/, Information extracted from its different sections, Mendoza, May 2003. JIMENA, Jaquelina, “Model Entrepreneurs 2002: how to fight the drought”, Economy Supplement of Diario Los Andes, Mendoza, May 12, 2002, pp. 1 and 2. MORENO, Alejandra, "Grameen Bank: based on trust and respect for others", Diario Correveidile, Chacras de Coria, Luján, Mendoza, April 2003, p. 4.YUNUS, Muhamad, notes taken during his closing speech of the “Knowledge Week”, Mendoza, April 2003.
