Fonkoze is the largest microfinance institution in Haiti serving
as the bank of the poor with over 56,000 borrowers and 250,000 savers. With
forty six branches Fonkoze is truly the most nationally renowned microfinance institution
in Haiti, and one that has impressive results to show for its methods. Founded
in 1994 by a Catholic priest, the “Fonkoze Family” is actually three
organizations working in solidarity with each other: The Fonkoze Foundation is
a rural microfinance institution that nurtures community development through
adult education and training, social impact monitoring of poverty, branch
incubation, and through innovations in rural microfinance delivery. Fonkoze
Financial Services is like a fully fledged bank or credit union, delivering
financial services and capital to the poor in the forms of loans as well as
safe places for savings, it is “designed to generate self-reliance and promote
a democratic economy in Haiti.” Fonkoze USA is the American counterpart
dedicated to “securing financial and technical support for its Haitian partners.”
Fonkoze was a brainchild out of the democracy movements in
Haiti during the 1990s during military dictatorship. Political democracy could
not come without economic democracy and strong economic foundations to give
people the ability to support themselves and their country. Typical of
microfinance institutions, Fonkoze lends virtually only to women, as they have
been shown over and over again to be the best economic investments to make in a
community. Women are much more likely to invest any money earned back into
families, education, health, and child development, as compared to men, who are
much more likely in poor societies to gamble away money or spend it on alcohol
and cigarettes. In addition, mothers than invest in their children will also
invest in their daughters’ education, increasing their knowledge of
reproductive health, population control, and which will in turn mean they look
better after their children and recognize the importance of their own
education.
Fonkoze also recognizes that poverty is incredibly hard to
break out of, and that it is not simply possible to lend a loan to an
individual and expect them to be able to sustainably leave poverty behind them
for good. Fonkoze incorporates a unique staircase approach to how they view
issues of poverty and the ladder to overcome them. The institution recognizes
that it needs to help the poor every step of the way and that they will steps
backward for steps forward. The first level of help is for the poorest of the
poor, and Konkoze’s efforts to helping educate and facilitate a microfinance
enterprise to help them out of abject poverty. The second tier offers very
small loans and literacy classes, while the third tier offers larger loans for
longer periods of time in a unique group donor fashion, where groups of women
take out the loans together and help each other in their money and project
management in solidarity. The fourth step is business development where large
sums are lent out to women ready to run and manage businesses and employ
others.
The best thing about Fonkoze in my opinion, is that it is a
Haitian run organization for the benefit of Haitians.
The video in Fonkoze's "Who We Are" section is a great representation of the kind of motivated women we will be working with during our Alternative Break to Haiti- the video not only provides a personal connection to the women who established Fonkoze, but also why and how they are going about the lengthy process of setting up a micro-finance organization. The work of Fonkoze is an excellent example of micro-financing for the Haitian community that is empowering women as well, and we have been given a great opportunity to collaborate and learn from such inspiring women. Hopefully we will be able to reciprocate the impact that the Haitians and Fonkoze will have on us!
ReplyDeleteThere are two aspects of Fokoze that I am drawn to.
ReplyDelete1. As it has been said, it is essential that the program is run by Haitians. Delicate cultural differences exist and American and other foreign aid organizations may try to be attentive to this but no one knows Haiti like a Haitian does. I believe in empowerment from within and other organizations tend to throw money at problems rather than fix them from within, which is a much more complicated problem.
2. Fokoze provides education. A woman is learning to read, another has a bank book. These women support each other and themselves through education. Whether its sending their children to school or improving a system, I believe this is an important part of creating a sustainable program.
What Fonkoze is doing is a unique strategic way to help the economy of Haiti. As already mentioned, they micro-finance people so that eventually they will be able to make it on their own. Majority of their loans are given to females, but what about those males who play the role of a mother and a father? I am sure that their are plenty of men who lost their wife in the hurricane and also need theses loans. While I do agree that women are the rock in the Haitian society I think this organization should take into consideration the men too. Not all of them will spend the loans on liquor or cigarettes.
ReplyDelete