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Grameen Foundation Offers
Condolences to Those Affected by Earthquake
Grameen Foundation staff, volunteers and supporters are
deeply saddened by the devastating impact of the earthquake in
China’s Sichuan province and extend our condolences to
those who have been directly affected. More than 70,000 Chinese
lost their lives, and untold thousands more remain missing,
homeless or without access to medical care, food and water. It
is especially personal for us as one of our partner microfinance
institutions, ARDPAS, is based there. GF is in touch with our
Chinese colleagues who have in turn spoken with all their branch
offices, and fortunately the impact of the earthquake on their
clients seems to have been minimal. Some loan recipients have
reported damage to their homes but they appear to have escaped
the major destruction of the disaster.
Beyond the need for emergency assistance, there will be a
significant need for long-term rehabilitation of people, homes
and communities in Sichuan province. Grameen Foundation will
continue to work through microfinance to enable entrepreneurs to
rebuild their communities.
China’s Economic
Success Not Yet Reaching All
According to the World Bank, in 2007, China’s
staggering real GDP growth was estimated at 11.5 percent. But
most of this growth is occurring in urban areas, and
China’s poor are being left out of this feat of economic
athleticism. With roughly one-quarter, or 300 million people in
China still living below US$1 per day (purchasing power
parity)—according to World Bank estimates—there is
clearly a large segment of the population not sharing in the
economic boon. As Kate Druschel, Regional Coordinator for East
and Southeast Asia at the Grameen Foundation states,
“China's recent economic boom is simply not reaching
China's poor, particularly in more remote, rural areas.”
Something must be done.
The key to ending the vicious cycle of poverty in China is
financial empowerment. Grameen Foundation (GF), through
microloans and with donor support, gives thousands of Chinese
women access to financial services, allowing them to access
economic opportunities. “Microloans give women the chance
to start a business and the chance to finally participate in the
growing economy,” says Druschel.
Grameen Foundation has
Ambitious Plans with its Microfinance Partners in China!
GF has a lot of work to do in China this year. GF plans
to raise almost $2 million for work in the country in 2008, over
half of which will support on-lending - money made available to
women as loans - and the remainder will be invested in capacity
building of GF’s three Chinese microfinance partner
institutions (MFIs): Chifeng
Zhaowuda Women’s Sustainable Development Association in
Inner Mongolia, Funding
the Poor Cooperative in Henan / Hebei Provinces, and Association
for Rural Development of Poor Areas in Sichuan (ARDPAS) in
Sichuan Province. These three organizations are on the ground
reaching 20,000 female borrowers through their microfinance
programs; 20,000 opportunities to end the cycle of
poverty. More
Grameen Donors and Volunteers
See Microfinance Make a Difference in Inner Mongolia
China Volunteer Network, visiting Chifeng
Zhaowuda. |
We are all used to stories that end with the words,
“Happily ever after,” but for a group of Grameen
Foundation volunteers, hearing Qiu Zhenqing’s story, the
words “mother, wife and now entrepreneur” meant so
much more. “Eight years ago, I simply had the desire to
put food on the table for my family,” she explains.
“But today, my friends and I all run our own
businesses.” Due to Qiu’s hard work and the support
of a microloan from Chifeng Zhaowuda Women’s Sustainable
Development Association, these words signify a new beginning for
her and her family. More
Empowering the Next
Generation
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With the help of microfinance, Li Suxia was able to create
a better life for her family. |
All parents hope to give their children a better life than
they had and, through microloans from Chifeng Zhaowuda, Li Suxia
was able to make this hope a reality. With two loans over a
two-year period, Li expanded her small agricultural seed shop
and used the extra income to send her son to one of
China’s top universities.
Eight years ago, Li earned approximately RMB1,000 (US$125)
net profit per month from her seed store keeping her family at a
subsistence level standard of living. After receiving a flier
about Chifeng Zhaowuda’s loan program, Li seized the
opportunity and took out a loan of RMB6,000 (US$850) to help her
diversify her store’s selection of products. With the
additional flow of capital, Li’s profits soared,
significantly improving her family’s standard of living.
Li recently took out a second loan of RMB7,000 (US$1000) for
additional improvements and her profits have increased to
RMB1,700-2,000 (US$240-US$285) a month. This extra income let
Li’s family afford the prestigious Wuhan
University’s tuition where her son is now in his second
year. With Li’s dedication and two small loans, she was
able to move from a small seed shop that afforded her family
merely a subsistence living to a true business, allowing them to
invest in their son’s future.
From Small
Family Farmer to Economic Bridge Builder
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Qiu Zhenqing's business saved her village from
drought.
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Living in one of the millions of Chinese villages seemingly
left behind in China's rapid economic development, a small loan
of just US$130 enabled Qiu Zhenqing to transform herself from a
small family farmer into a pivotal player in a rural
village’s economy.
To support her first business
venture, Qiu initially took out her first small loan from
Chifeng Zhaowuda in 1999 to buy a donkey-drawn trailer to
transport crops from her rural village to sell in the city
center. Her business was a success and Qiu quickly paid
off her loan. Encouraged by this success, she took out another
microloan to continue to grow her business, buying livestock and
land on which she could grow corn to feed her animals.
Even with the best laid plans, no one was prepared for the
2003 drought, which caused havoc in Qiu's village, where
economic livelihoods, crops and livestock depended on an
adequate water supply. Qiu found another source of water though
- she dug a well using another loan and drew water for her own
use and to sell to her fellow villagers. Qiu's efforts enabled
many of the villagers to keep their livestock, crops and
livelihoods.
Since her initial entrepreneurial days, Qiu has continued to
diversify her activities and be an active supporter of Chifeng
Zhaowuda in her village, using her home as a meeting place for
nine other clients in the village. Qiu says that she never could
have imagined such an independent life when she took out her
first loan. Today, Qiu continues to energetically brainstorm new
opportunities to allow her and her neighborhood to partake in
China’s growing economy.
Supporting One Another
Before their microfinance loan, the
Hong family lived in this mud house.
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Helping a woman from a rural village like Hong Guiling
improve her business is not only about helping an individual,
but also supporting an entire family. Hong has taken out three
loans totaling RMB5,500 (US$785) from Chifeng Zhaowuda to help
her family buy better seeds, tools and fertilizer for their
fields. These improvements have been successful and have
produced substantially more crops so that Hong's family was able
to move into a proper home that is able to protect them from the
province's harsh winter.
With the success of their business,
they built a new, sturdy house.
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Hong's family subsisted on the crops they harvested and the
profits from their sale, if they had a good season. Due to the
improvements they were able to make from the loans, the profits
from the family's farm increased and the Hong family was able to
move from the old leaky mud house that they lived in for two
decades to a new concrete four-bedroom home. Their new house
also has a kang, a ceramic bed, with a hearth underneath to keep
Hong and her family warm in the winter when temperatures can dip
below -30 degrees Celsius (-22 F).
The consummate
entrepreneur, Hong is not satisfied yet with her accomplishments
and hopes to apply for a larger loan to help her finance her
next project, buying fish at wholesale prices and reselling them
to locals during the
winter. |
Tell-a-friend!