Village Funds build capital for micro-loans that qualifying residents can access and repay with 2% simple interest. The Village Finance Committee determines residents' eligibility based on their responsibility and ability to repay. These loans provide an opportunity for villagers that they did not have before to advance their livelihood and exponentially multiply success, not only through economic growth, but by inspiring and motivating others to do the same.
This system has proven to be quite successful with little to no default rate on micro-loans. In 2010, the total capital amount in the 11 established village funds was $2,524.00 USD, and $277.00 was earned in interest revenue.
There were 54 loans made to qualifying villagers to purchase livestock, pay for medical care costs, buy rice, start up a small business, and for municipal improvements. This is significant in a region where 35% of the Cambodian population lives below the national poverty line of $.45 USD per day, *UNDP Human Development Report 2009.
Trailblazer provides training and oversight to Village Finance Committees for the management of their Village Fund. We monitor loans by conducting routine audits and provide loan books to track savings and loan payments.
Village Funds are a clear indicator of the economic health of the village as a whole and its ability to maintain economic sustainability, reducing long-term dependence upon international aid, and indirectly benefits every person in the vicinity of the village.
All village request-based projects are designed to ensure sustainability in order for Trailblazer (external implementer) to eventually exit the stage and allow the village community (internal activators) to successfully and autonomously continue all endeavors.