Tuesday, February 26, 2008

AND JUST HOW DID MICROCREDIT GET INSIDE THAT PRISON?

In the first installment of this story we took an overall look at the project from the perspective of a prison visitor (namely yours truly, Bob Graham) to the women microcredit borrowers. For me, it was a revelatory and moving experience!

But how about what it has taken behind the scenes to make this first-in-Latin America program come to pass?

Yes, behind inspiration there must always be good old-fashioned hard work. Besides the on-the-cement-floor work of FAPE Executive Director Sergio Gonzalez and his staff, there have been other important players in key roles.

Gloria Elizabeth Cruz dispays her products:

First was the Guatemalan government department of Social Rehabilitation in the Penitentiary System. It took some foresight and courage for those people to step outside their internal bureaucracy and hold a belief that private institutions could bring support and inspiration to some of the 200 women housed in the Preventative Center of the Santa Teresa Women’s Penitentiary.
They worked alongside FAPE to develop a plan of credit with financial education. Early foundational aspects included a decision that the loan amounts were to be based on the business plan of each woman. It was determined that the loans would not be made in the form of cash, instead the women were to be provided with the corresponding amount of materials, equipment and tools needed to create the products. Standard, “real-world” microcredit procedures were to be followed … 2% monthly interest rate, monthly principal and interest payments, monthly meetings to evaluate business plan execution.

The Penitentiary System officials were also instrumental in obtaining a grant of about $5,600 from the European Union to finance educational services from the School of Business & Economics, Universidad Rafael Landivar.

Assisted by student volunteers, the university personnel created and taught skills training based in the following phases:

n 35 hours of coursework in “Entrepreneurial Spirit – How to Run a Business
n 15 hours of coursework in “Life Planning”
n 35 hours of coursework on “Creating a Business Plan”

By the way, the 15 FAPE and University personnel involved didn’t just waltz into the prison and start their “gigs”! No, first they had their own coursework – several meetings to understand the penitentiary system in order to develop how to best initiate the program.
Margalena Lopez & Irma Carina Martinez set up their storefront

Some 47 women indicated initial interest in the program and were evaluated for appropriateness. Most were accepted and 27 have graduated to date. Purposefully only 5 projects capped at 12 women participants were selected for the first six-month trial, following the theory of “work the plan, listen, learn, and adjust”. The next cycle will likely be 8 new businesses. In two years the expectation is that 50 women will have participated.

Yes, this is a program that is labor-intensive and it can be seen as costly. On the other hand, it also can be seen as a labor of love and an investment that will pay dividends to society in the form of avoided costs of criminal activities.

And anyway, whom among us can put a price tag on helping a sister get back on the path?

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