Poverty Alleviation through a Micro - Finance Program: The De La Salle University – Dasmarinas Experience Rio Ramos – Mazo De La Salle University - Dasmarinas, Cavite, Philippines

 1M pesos - investment  individualized model  min. loan: Php 1, ,  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,  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 Eparaguere Before LEDC: minimum wage earner/ factory worker

Sustainability and Impact to the community Ms. Yolanda Lanorias (staff) Before LEDC – housewife After 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 graduate After 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