Women for Women is Bosnia's new microcredit lending program¾a direct response to the critical needs of women who have survived the war in Bosnia. It is designed to help women rebuild their lives and communities by creating new income generating opportunities.
WWB's microcredit lending program enables women to start their own businesses by providing small startup loans and giving borrowers access to training and support¾combining much-needed capital with the skills required for long term success. Loan terms are rigorous, and a structure of co-operation and accountability encourages the borrowers to identify and work towar long-term goals. Promoting self-suffiency, capital growth and the long-term sustainability of the program.
WWB's microcredit lending program offers hope and tangible opportunities to those left impoverished and disenfranchised by years of war. By working at an individual level, WWB's microcredit lending program contributes directly to the postwar recovery effort, which is so crucial to lasting peace in the region.
After four years of war, women represent 70% of Bosnia's adult population. These women will play a vital role in reconstructing Bosnia's civic and economic structures. With few opportunities for employment, loss of livelihood is a major obstacle to repatriation for over 250,000 displaced persons. Frequently, those who return, find their homes occupied or destroyed, their farms razed, their livestock slaughtered. International aid has created an opening for economic renewal, but officials and aid workers agree that only a fraction of the aid has made its way directly to Bosnia's citizens.
Last year alone, Women for Women:
Launched a microcredit lending program that is already providing thousands of dollars in loans and training in order to help women in Bosnia start their own small businesses.
Almost doubled our number of sponsors to over 700, bringing the total amount of aid we've provided in Bosnia to close to $400,000.
Began laying the groundwork to expand into Rwanda. Opened our first office in Sarajevo, enabling Women for Women to enhance post-war recovery efforts.
Replicating the Grameen Bank lending model, WWB will bring badly needed capital to Bosnia's rural communities. WWB is working with returned refugees because lasting peace depends, in part, on their recovery and success in building a future for their families. Refugees, many of whom are single heads of households, are also most dependent on humanitarian aid. Small loans¾as little as $250¾can mean the difference between going hungry and producing enough food to eat and take to market. WWB will target its investment to agricultural and animal husbandry businesses. This sector is currently a high development priority and small enterprises can boost local revenues while promoting environmental sustainability. Loans may also be used for the manufacture of clothing and handicrafts or for taxi and transportation services.
· WWB will pilot its lending program in Vogosca, a rural district outside Sarajevo.
· Most borrowers will be returned refugees and single heads of households.
· 90% of the targeted beneficiaries will be women, many of them widows; and demobilized soldiers.
· In the first year, WWB expects to make 500 loans ranging from $250 to $500.
· Borrowers need not provide collateral or proof of past credit.
· Loans are charged at simple interest, equivalent to the commercial rate in Bosnia, to be repaid in 25 weeks.
· Borrowers are required to save 5% of their loan amount in a group savings fund.
· Following a good repayment record, a second loan must be made for business expansion or home construction.
· Before submitting an application, each woman must complete a two-week orientation to the principles of microcredit lending and her responsibilities as a potential borrower.
· Borrowers will be instructed in bookkeeping and in developing a feasible business proposal.
· In the second year, borrowers will be eligible for skillsbased training in business management. All programs will be participatory and will build on borrower experience with the program.
· Borrowers will organize into groups of five, with each member being responsible for the others' timely payments. Peer review is an integral part of the Grameen model and has proven central to members' success.
· The eight groups in each town will jointly establish a community center. The centers will provide a convenient location for making payments, requesting assistance, and organizing workshops and training seminars.
WWB is a non-profit organization dedicated to improving the lives of women who survived the atrocities of "ethnic cleansing." WWB, made up of volunteers of all religions, nationalities, and backgrounds, protests the crimes of the war on a personal level. Through WWB's unique sponsorship program in Croatia and Bosnia, simple acts of friendship connect women of different religions and nationalities, promoting ethic of tolerance and responsibility. Monthly letters and donations, given by sponsors and delivered by local staff, enables women to buy items such as food and medicines, and entrust to them a measure of control over their lives. Since 1993, WWB has delivered more than $250,000 directly into the hands of more then 1000 women.
The microcredit lending program is a natural next step for WWB. Reaffirming our commitment to tolerance and to the empowerment of the individual, WWB staff and volunteers are experienced professionals with expertise in banking and microcredit lending, conflict resolution, and non-profit management. Our experience in banking and our understanding of local needs enable us to get initiatives off the ground and ensure their long-term success. WWB's record of achievement was recognized last year when President Bill Clinton and Hillary Rodham Clinton singled out WWB as one of a half-dozen leaing grassroots organizations making a difference in Bosnia.
You can support this effort ... by making a donation. purchasing products made by Bosnia, women or becoming a volunteer. For information Please call at (202) 822-1391 or Fax (202) 822-1392. E-mail wmn4wmn@aol.com. Women for Women in Bosnia is a 501(c)(3) tax-exempt organization
Women for Women, formerly known as Women for Women in Bosnia, was founded in 1993 in response to the Serbian army's war strategy of rape camps, concentration camps, and genocide in Bosnia and Croatia. During the war, we provided emergency relief to women who endured eviction form their homes, execution of loved ones, and, often, rape. We are now helping Bosnian women recover from this devastation. We are also expanding Women for Women's work to Rwanda, where a Hutu led campaign of genocide and mass rape have left thousands of women in great need.