In 1999 - 2000, dozens of farming families and cooperative members benefited from credits awarded by the Coordinadora. They used their loans to plant corn, beans, diversified organic crops, and to improve shrimp farms. Eduviges Vides, a community leader, was just one of the recipients of these loans. Below you will find her personal testimony about the project, followed by a project report.

Testimonial Interview:  Eduviges Vides

PERSONAL DATA

FAMILY SITUATION

Mrs. Eduviges Vides is a single mother with four children between 4 and 12 years of age: Javier Antonio Vides, Gerardo Misaél Vides, Juan Diego Vides, and Elsy Azucena Vides.

She is a working woman who is raising her children with a good deal of difficulty. Her partner abandoned her when she gave birth to her last child. In order to survive, she has dedicated herself to many different activities such as: a day laborer cutting sugarcane for the Nancuchiname Cooperative; selling corn-on-the-cob, tamales, bread, and other food in the stands in San Marcos Lempa; she raises poultry and pigs for small-scale sale; and, she does agricultural work: she raises corn and white beans.

Her family lives in a modest home in El Mono community. They own their home, but it is built on land that belongs to the Nancuchiname Cooperative. The house was built precariously: the walls are made of adobe (bricks made of sun-dried mud), and the roof of tiles and laminate. The house has electricity, a composting toilet, and a well for drinking and domestic needs.

With the income that she gains through her work (which is very hard but not very profitable), Eduviges has raised four small children and provided them with education, clothing, and health to the best of her abilities.

INTERVIEW

Why did you decide to participate in the project?

I participated in the Credit Fund project because I didn't have enough money to buy the supplies necessary to sow corn. Besides, it was necessary for me to provide for my family, because I no longer have the help of the father of my children. I participated in this project because there was no other way I could sow my land with corn: the banks don't loan money to the poor because we don't have collateral. We only have our word and our honesty when it comes to commitments such as paying a loan. We repay our loans, even if that leaves us with nothing.

Have there been any changes in your family as a result of your participation in the project? How has it affected your family? The project has truly helped us. Through it, we have guaranteed a supply of our most basic food, even though we still lack other necessities to lead a more normal life. Nonetheless, the fact that we are receiving credit makes me feel that we, the poor, have value as people in whom you can trust.

We are still worried about drought, which would leave us with a poor harvest. But, with God's help, we hope to make enough money to pay back our debt and save part of the harvest for our daily meals.

The project has made us productive. It is a way of getting ahead in life and improving my family's living conditions a little. These are the positive changes in my life and in the lives of the other people who participate in the project.

How have your plans for the future been affected by your participation in the project?

If we use this credit well and if we have a good corn harvest, I will pay the debt and with the remainder I will be able to sow beans. Knowing that we will be able to eat every day gives us strength to think about other economic activities that will improve our lives, like improving our production with other crops that are more profitable.

What is the importance of the project to your community?

The Credit Fund project is important for our community because it allows several poor families to work and it opens the possibility to consider and work in other projects such as diversified agricultural plots, a cottage business, or learning a trade. This will become more possible as we demonstrate that we are responsible. Also, it strengthens the community's organization. When people see concrete benefits, they will support the community Directorate more, as well as the Local Group. This boost to local organization will allow us to solicit and coordinate projects with the Coordinadora and other institutions.

The project also benefits the community because, through work, it generates income. We are content because we have something to eat and this helps us to take care of other basic needs.

Has your participation in the project changed your role in the community? How? I am a member of the community Directorate. I'm one of the people that organize other men and women in the community to search for ways to improve the community and the way in which we live.

I believe that I have an important role in the community because of my participation in the Credit Fund project as a beneficiary and as part of the organization that made the original request to the Coordinadora. Perhaps for this reason the community has reelected us to the Directorate for another two-year period during the General Assembly on July 27th of this year.  We feel that participating in the Directorate is a major responsibility, because everyone depends on us for the community's improvement.   We hope that the community keeps supporting us and that, with God's help, we will move forward. 

Report: Credit Fund Project

In 1999, the Coordinadora del Bajo Lempa received $75,000 from the American Jewish World Service to provide credit to poor peasants. The beneficiaries live in the Bajo Lempa, in Usulután, and participate in projects run by the Coordindora.

Credit has been awarded, essentially, for the cultivation of diversified plots, subsistence crops (beans and corn), fishing cooperatives, and shrimp farming cooperatives in southern Usulután.

Dry season farming

Very often agricultural losses are experienced during the rainy season, due to flooding along the banks of the Lempa River. Therefore, the Coordinadora decided to award agricultural credit for the cultivation of white beans during the dry season to 121 producers in four communities near San Marcos Lempa between November 1999 and February 2000. These communities were: Río Roldan, La Papalota, El Mono, and Mata de Piña. Seventy-four producers in Ceiba Doblada, California, and Papalota (there are two communities with this name in different regions), near Tierra Blanca, also received credit. Indirectly, more than 1,095 community members have benefited from this portion of the Credit Fund project.

The credit served for land preparation and the purchase of seed. The majority of this group of beneficiaries does not own its own land (and therefore cannot produce crops that require multiple growing seasons). Instead, they rent land by the season in order to feed their families, and sell their surplus in the market.

During the productive cycle of the dry season, they faced several problems. Principally, rains in December damaged crops by compacting the soil. Furthermore, pests attacked: wire-worm (gusano de alambre) at the beginning and a later a virus. These problems resulted in a significantly diminished yield. In addition, because crops grown during the dry season depend on residual moisture remaining after the rainy season, not all plots of land have the same capacity. Finally, strong winds hit during as the crops were bearing fruit.

Río Roldan had the lowest crop yield, due to the poor moisture retention of its soils. Each acre produced between 25 and 200 pounds of beans and corn. In comparison, in Papalota, Mata de Piña, and El Mono, each acre produced between 200 and 750 pounds.

In areas where crops were lost early in the growing cycle, an attempt was made to resow the land. However, this attempt failed because the soil did not retain sufficient moisture and the pests increased. Nonetheless, some producers had enough produce, permitting them to repay their loans (as well as feed their families).

Irrigated Farming

Twenty families benefited from credits awarded for the purchase of sprinkler pumps for irrigation (5.5 hp) during the dry season. These 20 families represent a total of 110 people.

The beneficiary communities were:

- Los Ensayos I, II and III
- San Antonio Potrerio
- Nuevo Amanecer
- San Juan del Gozo
- Isla de Méndez I and II
- El Aguacate
- Ceiba Doblada I and II
- El Retiro

The pumps have been financed for a period of three years. During this period, they will be used to produce crops in diversified plots, growing crops with both short and medium growth cycles, in plots covering 50 acres.

Presently these projects are in their production phase. Thus far, all has gone well with these crops, especially with plantains, maracuyá (a fruit), papaya, squash, loroco (a flower used for seasoning), and other vegetables.

The recuperation of these funds will begin in November of 2000, when the grace period ends. These producers were granted a grace period on their credit so that they would not have to repay before having a return on their investment.

Fishing and Shrimp Cooperatives

Credit was awarded to the following shrimp farming cooperatives for the reconstruction and preparation of their ponds: San Francisco, La Salvadoreña, Walter Romero, Sara y Ana, and El Progreso. The fishing Cooperative el Robalo, in Isla Jobal, also received credit.

Presently these cooperatives are producing profits from the sale of their catches. They have committed themselves to repay their credits according to the continued success of their projects.

Project Methodology

The approval of community leaders and project technicians played an important part in the selection of project beneficiaries. Each beneficiary, along with a technician, prepared a work plan. In each community, a follow-through group was formed to monitor each project, generate funds, and repay their credits. The technician participated throughout these processes, giving technical assistance, preparing reports, and assuring the success of the projects.

Beneficiaries received credits valuing between 1,000 and 5,000 colones ($115 to $575), according to their ability to repay and the presence of other NGOs in the region that were also helping them (to avoid project duplication). Each beneficiary signed a document, guaranteeing to the Coordinadora that she/he will repay their debt. We have been managing this data on an individual basis to measure their ability to manage credit well, giving this project vital information necessary to make improvements and effectively direct credit in the future.

General Results

We have seen improvements in the beneficiaries’ productive capacities, food production, and ability to develop future projects. Furthermore, this project has allowed us to identify financially responsible community members and those with leadership ability, which will contribute to the strength of this project and others over the long-term.

A result of fundamental importance has been the strengthening of the diversified plots. During the dry season, they have been able to maintain production levels, thus benefiting their families. We believe that this result represents a permanent improvement in the productive capacity of these producers.

By the end of the first quarter of this year, 11.86% of the credits awarded to cooperatives and dry season farmers had been repaid, representing ¢49,500.00 ($5,670.10). With respect to individual credits, 8.39% have been repaid, representing ¢10,800.00 ($1,237.11). Thus, the total amount recuperated thus far is ¢60,300.00 ($6,907.21). We have already awarded the money that has been repaid to new beneficiaries, thus giving a longer life to the Credit Fund than the period originally conceived in this project.

Finally, we have found that the recuperation of credit depends on the productive cycles for the different beneficiaries (be they shrimp and fishing cooperatives or farmers). For that reason, a grace period has been granted in many cases (for example, the shrimp farms repay on a three or four month cycle).

Conclusions and Projections

This Credit Fund pilot project in itself has been a success, especially as relates to developing the Coordinadora and communities capacities to supply credit to producers. For many of the beneficiaries, we consider this an important stage in breaking the cycle of dependency.

We hope to increase the scope of the Credit Fund project, making it a permanent component of the Coordinadora’s plan for sustainable economic development in the Local Zone of Peace.

In order to accomplish this, we need to expand the amount of credit available for communities and individuals that are willing and prepared, but have not been beneficiaries. Because of the success of the pilot project, we have already received requests for more than $15,000 in credit. Many others are prepared to prepare requests once funds become available. For the next year, we anticipate a demand for agricultural and irrigation credits in excess of $50,000, and $12,000 for cooperatives.

The Coordinadora’s capacity for the Credit Fund project is growing and developing. Community leaders and promoters have in many cases taken the lead in making this project a success, including giving follow through to the repayment of credit. We expect to increase the use of community leaders and promoters who have demonstrated themselves responsible, thus building community capacities instead of depending on professional staff for project success.

--June, 2000