Fundacion Paraguaya has a lofty goal this year, to raise 6,000 women in poverty to an income level above 500,000 guaranis ($125) per person per household per month.

The project is a work in process at Fundacion Paraguaya, which is reaching out to clients who fall into the poverty category.  The clients are current members of women’s committees and already have loans with the foundation.  The objective is to encourage and teach these clients to manage their loan funds, putting the money to productive use.  Implementation strategy has been vague, but a visit by a regional manager who held discussions with the asesoras (committee credit officers) about their work showed that strategy development is in process.  The cart before the horse, perhaps, but an idealist might suggest that if a goal is set, a way will be found to achieve it.  The manager also attended meetings with target clients.  I was encouraged by the visit, the two-way discussions, and the client visits.  Nothing can replace first-hand observation.

"Erradicacion" meeting

Clients at a low economic level need a great deal of attention.  Asesoras who currently shoulder the responsibility for reaching out to this group will invest a significant amount of time.  Women living at subsistence level have little or no concept of  budget, the distinction between household and business income, or future earnings.  They need to be introduced to all concepts of financial management; recordkeeping, costs, revenues, investment.   And they need a great deal of personal encouragement since they have little self-confidence.  The asesoras with whom I travelled care about these clients; they are patient and supportive.  They are currently handling this education and follow-up in addition to their existing training, credit review, collection, and business development responsibilities.

The plan in Ciudad del Este is for asesoras to reach out to their lowest income clients and hold frequent training meetings.  An early meeting emphasizes that the foundation wants to help increase the women’s income, and “business plans” are written.  These might be for group food sales, making and selling of household cleaning products, or other sales ideas.  Follow up meetings will take place soon after, to review, repeat, and for further planning.  Not all the clients are receptive.  This raises questions as to their suitability as foundation clients; they are supposed to have a plan and a business use for their loans.   But they don’t always.  Does one keep trying?  Or do these clients fall out of their committees in favor of more promising clients?

An asesora addresses a committee

The poverty erradication project is a targeted extension of the credit work already being done, but is an added responsibility for asesoras faced with travel challenges and unreliable meeting dates.  Asesoras worry that if target numbers are too high, some of their clients will slip back, due to lack of attention.  Quantity or quality?  As with credit reviews and business development, a careful balance will have to be struck.

The project brings me back to my thoughts on training, “capacitacion.”  The education process is critical, and time and energy invested will be considerable.  Who’s to to the training?  The asesoras are the best suited, rather than an outsider.  Asesoras know and are trusted by the clients, and they are positioned for repeat visits, which will be necessary.  Let’s hope adjustments are made to other job responsibilities, and that reasonable objectives are set.  I think high quality, constructive relations with needy clients could yield interesting results.  Disinterested clients should be quickly weeded out; they won’t enhance their committees, and their peers should want to replace them with promising prospects.  This may take input from asesoras.

A lofty objective?  Yes.  But kudos for trying, and access to credit is helping Fundacion Paraguaya’s clients to gain ground financially.

Microloans will not help all of the targeted women; some simply don’t have the energy or interest in finding ways to make incomes grow.  But others will benefit.  Microfinance won’t eliminate poverty, but it is a tool that helps many women achieve self-confidence and financial independence.

Advertisement