Poverty Alleviation through a Micro - Finance Program:

The De La Salle University – Dasmarinas Experience

Rio Ramos – Mazo

De La Salle University - Dasmarinas, Cavite, Philippines

rlramos@dlsud.edu.ph

1M pesos - investment individualized model min. loan: Php 1,500.00 - 3,000.00 skills training called pulong-pulong; savings called Capital Build Up

Historical Background of the Program Context of the Livelihood Enterprise Development Center (LEDC)

Framework - Caucus on Poverty Reduction (CPR): Forging Partnerships, Building Capacities

Lasallian Guiding Principles on Social Development - self propelled actions for development

Partner Community - Brgy. Paliparan III -resettlement area of urban poor families; 75,000 households (2001)

partners: Local gov’t unit, non, gov’t orgs., local parish Php 31 M = total loan releases from

2004 to present Php 9 M = Capital build up of

partners Php 171,000 = Damayan Fund Net Assets and Liabilities = Php 7 M 5,000 individuals served 95% women 9 regular staff 2 branch offices serving 16 local communities

Challenges Faced

DLSU-D’s lack of experience in implementing a micro-finance program training and benchmarking adapting an established micro-

finance program

limitations in the capacity of the partner community

notion of a “free” service unsuccessful livelihood programs limited entrepreneurial skills

dissolution of Caucus on Poverty Reduction legality issues: DLSU-D as a non profit organization concerns on personnel

Sustainability and Impact to the community LEDC as a community engagement

program developed sense of service and mission and encouraged volunteerism among the students and faculty members

LEDC as a micro-finance Non governmental organization the funds are well managed through an

established monitoring system staff are committed, dedicated, and

imbibed a deep concern for the program; a good human resource policy is in placed

the program have contributed in providing alternative source of income for the displaced families established micro-businesses (sari-sari

store, general merchandise, backyard industries)

created local employment Increased income among the partner-

beneficiaries that helped them build their homes, send their children to school, and provided them with a “modest luxury”

Sustainability and Impact to the community

Ms. Helen Escala Before LEDC: housewife, very shy;

started with Php 3,000 as initial capital

After LEDC: certified business woman and very driven; owner of a sari-sari store, dealer of bottled drinks; able to send her children to school; built her own home and a 5 - door apartment; owns two tricycle, one motor bike; employs five personnel; her savings amounted to Php 90,000.00

Some success stories:

Sustainability and Impact to the community

Ms. Jesusa Dulce Before LEDC: housewife,

sells rice cake; started with Php 1,500 as initial capital

After LEDC: producer and supplier of rice cake to the locality, and nearby towns; built her home; sent her children to school; employs 15 personnel; regularly saves and uses the savings as additional capital; seasonally borrows capital from LEDC

Sustainability and Impact to the community

Ms. Gemma Labastida Before LEDC:

housewife; started with Php 3,000 as initial capital

After LEDC: professional photographer; has her own photography business; employs two personnel; built her home; sent her children to school; her son works abroad; recently started with a new business: sari-sari store

Sustainability and Impact to the community

After LEDC – full time sewer of curtains and school uniform; employs 3 sewers; built her 2 storey home, including her sewing area; sent her children to school

Ms. Rebecca EparaguereBefore LEDC: minimum wage earner/ factory worker

Sustainability and Impact to the community

Ms. Yolanda Lanorias (staff)Before LEDC – housewifeAfter LEDC – volunteer staff to branch manager; sent her three children to school; built her home; pro-active staff and compassionate community development worker

Ms. Monette Ambat (staff)Before LEDC – highschool graduateAfter LEDC – graduate of a degree program; regular staff; sends her siblings to school

Sustaining the mission the university can effect liberating action through its

university social responsibility initiatives: capacity to sustain a social development program (instead of dole out)

provide opportunities by building capacities of individuals context sensitive capacitating mutually empowering

LEDC should: continue expanding its coverage explore on other opportunities:

strengthen training and savings capacity provide additional services to partner-beneficiary

to sustain their involvement with the center