Villagers receive their savings books.
31 May 2011
Source: alertnet
By Karen Matthee
It was a historic moment for the members of a unique savings program in Cambodia’s Phum Seam Village. At a May 25 meeting held at the farmer’s cooperative, they received their first savings account books which will allow them to track their contributions and shared savings.
Cresa Pugh, Southeast Asia resident manager for Clear Path International, was on hand as the heads of 38 households proudly accepted their orange savings booklets. CPI and its partner organization, Cambodian Volunteers for Community Development (CVCD), initiated the program two years ago in this small village in the Bovel District of Battambang Province.
Loan programs are quite prevalent in SE Asia countries. Savings schemes are more rare. They require a significant conceptual change. Does a family borrow money to be able to spend money? Or does a family save its money and then spend its own money? A community savings pool allows families to jointly deposit their funds in a financial institution to earn interest and prepare for the future. It is a more sustainable approach in the long term, as compared to loan programs.
This program was designed to teach the landmine survivors the value of saving money for future needs. Each family contributes a few dollars per year to the community savings pool and, in the event of an emergency, can apply to borrow money from the fund at no charge. Since the savings program began, seven families have borrowed money, which was used primarily to cover medical and burial expenses.
Clear Path and CVCD established the Phum Seam Farmers’ Cooperative and Rice Mill in 2006 to provide socio-economic and agricultural support to landmine and bomb survivors in three districts in Battambang. The cooperative is located in the K-5 mine belt, a 1,046-kilometer stretch of land along Cambodia’s western and northern border with Thailand, where approximately six million landmines were laid between 1979 and 1989. As a result, the region is home to many landmine survivors. Since 2007, CPI has served over 3,000 beneficiaries through the activities of the rice mill, vocational training and micro-credit lending programs.
Launched with contributions amounting to two tons of rice and 580,000 Riel (about $145), the pool now totals 2,466,900 Riel ($616.72), which includes a $325 donation from CVCD made at the May meeting, and 6,000 kilograms of rice.
CVCD hosts meetings frequently throughout the year to provide financial management training and to give participants a forum in which to discuss issues related to the program and raise questions.
31 May 2011
Source: alertnet
By Karen Matthee
It was a historic moment for the members of a unique savings program in Cambodia’s Phum Seam Village. At a May 25 meeting held at the farmer’s cooperative, they received their first savings account books which will allow them to track their contributions and shared savings.
Cresa Pugh, Southeast Asia resident manager for Clear Path International, was on hand as the heads of 38 households proudly accepted their orange savings booklets. CPI and its partner organization, Cambodian Volunteers for Community Development (CVCD), initiated the program two years ago in this small village in the Bovel District of Battambang Province.
Loan programs are quite prevalent in SE Asia countries. Savings schemes are more rare. They require a significant conceptual change. Does a family borrow money to be able to spend money? Or does a family save its money and then spend its own money? A community savings pool allows families to jointly deposit their funds in a financial institution to earn interest and prepare for the future. It is a more sustainable approach in the long term, as compared to loan programs.
This program was designed to teach the landmine survivors the value of saving money for future needs. Each family contributes a few dollars per year to the community savings pool and, in the event of an emergency, can apply to borrow money from the fund at no charge. Since the savings program began, seven families have borrowed money, which was used primarily to cover medical and burial expenses.
Clear Path and CVCD established the Phum Seam Farmers’ Cooperative and Rice Mill in 2006 to provide socio-economic and agricultural support to landmine and bomb survivors in three districts in Battambang. The cooperative is located in the K-5 mine belt, a 1,046-kilometer stretch of land along Cambodia’s western and northern border with Thailand, where approximately six million landmines were laid between 1979 and 1989. As a result, the region is home to many landmine survivors. Since 2007, CPI has served over 3,000 beneficiaries through the activities of the rice mill, vocational training and micro-credit lending programs.
Launched with contributions amounting to two tons of rice and 580,000 Riel (about $145), the pool now totals 2,466,900 Riel ($616.72), which includes a $325 donation from CVCD made at the May meeting, and 6,000 kilograms of rice.
CVCD hosts meetings frequently throughout the year to provide financial management training and to give participants a forum in which to discuss issues related to the program and raise questions.
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