San Luis in Bolivia
In 1989,
MEDA chose Bolivia as the first location to replicate the Small
Business Development Program it had launched in Haiti three years
earlier. It decided at the outset to partner with a local savings and
loan cooperative. Besides the benefit of lowered overhead through
shared administration, MEDA felt its program would be stronger if it
could encourage participants to save as well as borrow. MEDA selected
the San Luis Cooperative as its partner, and became the first
organization to promote microfinance through savings and loan
cooperatives in Bolivia. San Luis Cooperative had its origins as a
market cooperative in the late 1960's and had developed into an
established financial institution. Between 1989 and 1997 the
microfinance program, called PRISMA, expanded to seven other
cooperatives in eastern Bolivia.
Through PRISMA and the San Luis Cooperative, MEDA has directly and
indirectly made a significant, positive contribution to the development
of the microfinance sector in Bolivia. In line with MEDA's practice, PRISMA eventually "graduated" and became
absorbed completely into the San Luis Cooperative. Though not actively
involved in its operations, MEDA continues to support San Luis through
Sarona's investment in the cooperative.
Vincenta
Pacheco pulls back a
sleeve to show burn scars on her arm, the result of a household fire a
decade ago. With mounting medical bills she needed more income, so she
started a garment business.