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Vaccinating against damage
Credit for Preventive Strengthening
Credit
In 2001-2003 DW tested the potential of making special sources of credit available to families in order to strengthen their home. There was some doubt whether people would contribute to and participate in the strengthening of their homes, but the experience has proved that people are very ready to participate in the process of strengthening through labour and cash inputs, and commune partners have always been convinced that this would work.
Families wanted to borrow money in any case to cover their contribution in the short term. Household surveys have also shown that because no formal credit facility existed to pay for strengthening the home, families have had to go to informal moneylenders, who charge high repayment rates. DW concluded that this caused hardship and that the project needed to demonstrate that a dedicated affordable source of credit for house strengthening could work successfully: the result is that it does.
Credit programmes relate more commonly directly to income generation activities, but the indications are that strengthening the house is considered just as important an investment, and families have both been ready to borrow sums in the order of 100 US$ and make regular repayments at 0,3% monthly interest.
The credit system was managed by the Commune Damage Prevention Committee in collaboration with the participation of the Women’s and/or Farmers’ Union.
Although the present programmes do not build on the credit fund, it remains that a longer term goal for DW is to see other organisations take note that people do repay loans for house strengthening and that they will in turn provide similar credit opportunities.
