The World Neighbors programs in this area of Peru are run in conjunction with the Apurimac Integrated Development Program and it is Julio’s responsibility to negotiate with local governments and oversee the overall running of these programs. We were told that the goal of the program is to develop the capacity of communities to create locally led organizations that will be able to sustainably increase their income and food security in order to improve the overall quality of life. Specifically, a key component to helping families increase their income is locally controlled savings and credit. All loans are approved by the local organization which sets the interest rate and collects the loans. The farmers receive credit at 1 percent interest per month that they pay back in monthly installments over the course of six to 12 months. Once the loans are repaid, this capital is used to make loans to new farmers. This goes on until everyone in the community has a chance to make an investment (via credit) and pay it back. (We later learned that some communities allow the original farmers to take out greater loans and to continue to expand their livelihood as long as they pay back one loan completely before they take out another).
With the poorest, the farmers are given livestock and they pay back the credit by passing along the baby animals to other farmers. The first loans are for animals. Then, by decision of the local group, the credit can be expanded to include seeds, tools, healthcare, education and community priorities. Though World Neighbors also assists in providing various types of trainings and education, the priorities of the savings and credit groups are set by the communities. What is really significant here is that these programs give the poorest communities a chance to build themselves up and out of extreme poverty. These communities would never be eligible for bank loans and, as I mentioned before, they are too remote for NGOs.
The treasurer told us: “I never knew I could do something like be a treasurer and keep the books for a program like this, but World Neighbors taught me how to do this and now I am a treasurer.”
One way a nearby community used their excess money was to sort out a difficult problem: vampire bats were attacking and killing their cattle. They were able to use their money to buy materials to capture the bats and to treat their cattle.
We met promoter Tomasai Yanez (pictured on the left of photo). She proudly showed us her store which she was able to create through this program. She started with animals, but did not know how to raise animals. She received training, and with the money she received from her business with animals, she was able to put up enough money to get a matching loan and buy and stock her store. Her store serves her community and neighboring communities. Tomasai and her husband also have a garden and sell what is extra from the harvest. She said that she and her husband now have enough money to buy their son’s school supplies.

