Handling the Money

It all started two years ago. The kind-hearted people from Canada left some money behind for the community to build a school. However, the community was not ready to build the school so the money was sent aside for as a fund that could be used for revolving loans.

The first loans were given out a year and a half ago to the women to purchase pigs. The idea was that after a year the pigs would have piglets and either the mother or the piglets could be sold. The pigs and piglets; some were sold. But the majority of the women did not pay back the loans, instead using the money for the family. Whether they did not understand the loan concept we will never know but the incident triggered the establishment of a Credit Committee.

The regulations of the Credit Committee were instituted at a monthly meeting. This committee consisting of three men set up further guidelines regarding the borrowing of money and drew up a standard application form. From our point of view, the amount of money borrowed is a pittance but this small amount can make a huge difference to the farmers.

In the first year of the project under the direction of the committee, each farmer will be able to borrow 1000 bolivianos or the equivalent of just under $120. Most farmers will use this to mechanize farm. This means that they will hire a custom farmer to work the field and seed the rice for the first year. Then next year the custom farmer will use that land for soy and plant the rice in exchange for rent. The greatest expense occurs in the first year and many of the farms are just ready for mechanized farming.

Jake was appointed President of the committee so he, along with two other farmers, will evaluate the applications. This process has enabled Jake to meet personally with most of the farmers and he has been impressed with their interest in the project and their knowledge of money management. Most have been able to reserve money for planting the crop but are only short the amount needed for the chemicals, usually around $100.00. We still are not sure if all of them keep their money in a sock or in a hole in the ground!