International Federation of Red Cross and Red Crescent Societies (IFRC) International Federation of Red Cross and Red Crescent Societies (IFRC)
Search :

News
News Home
News Stories
Press Releases
Speeches
Opinion Pieces
Audio & Video
Small loans make a big difference for at-risk Cambodians
26 April 2007
By Joe Lowry of the International Federation and Phireak Mom of the Cambodian Red Cross Society
Thirty-two years ago, the Khmer Rouge took over the Cambodian capital Phnom Penh. The brutal regime destroyed much of the political, cultural and social life of the country. Given the scale of the suffering, the transformation and recovery in Cambodia that can be seen today is a remarkable testimony to the resilience of its people.

Cambodia was not only ripped apart by Pol Pot's regime, it also became one of the most heavily mined countries in the world. It’s estimated that every second settlement, or around 6,400 villages, is contaminated by land mines and explosive remnants of war form the various conflicts that have raged through the region. There are up to six million mines that still lay undiscovered, and around 500 people are killed or maimed by these silent, dormant killers each year.

The Cambodia Mine Victim Information System, a part of the Cambodian Red Cross Society, the Cambodian Mine Action Centre and others do a good job of raising public awareness of mines. Information campaigns are such a success that 80 per cent of people know about the dangers of mines. But in this case, information is not enough. Poverty compels millions to risk life and limb to clear land for farming, or collect scrap metal to sell and feed their families.

Douen You is 56-years-old and lives with his family of seven children in Veal Veng, western Cambodia. His plot of land is too small to grow enough food to feed all his family, and is also prone to drought and flooding.

"I worked five days per week with my two daughters to collect resin, scrap metal and mushrooms in the forest,” he explains. “I used to get 40,000 to 50,000 Riel (around $10 to $12 USD) a week, and I'd use the money to buy food and medicines for my wife and my small kids at home."

Douen You has been selected by the Cambodian Red Cross to receive a 12-month interest-free loan amounting to around 240 Swiss francs (roughly $200 USD) to buy a water pump since his farm is located close to the river so the machine will allow him to draw water for planting peanuts, corn and others crops. With this investment, he has already earned 400,000 Riel (around $100 USD) a month over the past three months from selling his produce. He hopes to repay the Red Cross 33 per cent of the capital they lent him each month for the next three months.

The programme has been running since 2000, with the information component being run by 500 Cambodian Red Cross volunteers, many of them from the youth section.

“When it became apparent that people were going to run the risk of death or injury because of mines, despite of the education programmes, the Red Cross decided to add a new component, microcredits, which have been funded by German Red Cross since last year,” explains Karina Lehman, the programme coordinator for the lending project. The funding also covers staff, training, and education.

“The loans are offered to both the at-risk families and to people who have been injured by mines and other explosive remnants of war,” she adds.

Interest-free loans amounting to the equivalent of around $200 USD are offered to help people open a shop, by pigs or, as in Douen You's case, purchase a water-pump to irrigate land. Best of all, this programme is environmentally friendly – it recycles money. Once loans are repaid, the money is freed up for use by other families. So far, 80 families have benefited and 50 more will join the programme before the end of June 2007.

Phireak Mom, the programme coordinator for the Cambodian Red Cross, affirms the success of the programme.

"On the educational side we can see the dividends. The number of people being killed or maimed is still unacceptably high, but nonetheless it has been halved since 2005,” he says. “And the loans we provide are being paid back more rapidly than we had anticipated, proving that people can quickly get their lives together if they are given a small bit of encouragement and material incentive."
Douen You (far right) and his family receive a new water pump, purchased with a loan from Cambodian Red Cross. Also pictured (left) Van Heang, the local Red Cross branch director of Pursat province, and the National Society’s development officer, Tep Rom (second from left). (p15675)
Douen You (far right) and his family receive a new water pump, purchased with a loan from Cambodian Red Cross. Also pictured (left) Van Heang, the local Red Cross branch director of Pursat province, and the National Society’s development officer, Tep Rom (second from left). (p15675)
RELATED LINKS
Activities in Cambodia
More news stories
Deadly legacy. Two explosive remnants of war, which are still killing and maiming in Cambodia, 32 years after the capital of Phnom Penh fell to the Khmer Rouge. (p15674)
Deadly legacy. Two explosive remnants of war, which are still killing and maiming in Cambodia, 32 years after the capital of Phnom Penh fell to the Khmer Rouge. (p15674)
Cambodian farmer, Douen You, has been given a new opportunity to make a safe living thanks to an interest-free loan from Cambodian Red Cross. (p15673)
Cambodian farmer, Douen You, has been given a new opportunity to make a safe living thanks to an interest-free loan from Cambodian Red Cross. (p15673)