October is Economic and Community Development Month.  Rotary supports investments in people to create measurable and enduring economic improvements in their lives and their communities by:

In September 2015, the United Nations adopted 17 Sustainable Development Goals to be achieved by the year 2030.  Goal number 1 is the elimination of poverty in all forms everywhere.  Today, over 800 million people live below the World Bank global poverty level of $1.90 per day.  Poverty is  more than the lack of income and economic security.  Its manifestations include hunger and malnutrition, limited access to education, social exclusion and lack of participation in decision making. Rotarians  in our district and around the world are helping to provide financial services for the poor --  reducing poverty by enabling them to build assets, increase incomes, and reduce their vulnerability to economic stress. Services such as savings, loans, and money transfers enable poor families to invest in enterprises, better nutrition, improved living conditions, and the health and education of their children. 

Microfinance has a solid track record as a critical tool in the fight against poverty. Microfinance provides loan capital to help low income people – primarily women –start sustainable businesses. Microfinance is more than just loans.  It is an entire system of support, guidance and accountability to ensure  financial stability for the borrowers and their families.  The emphasis on women recognizes that an empowered woman will focus on the health and welfare of her children and on the economic uplift of her community.   In the past 15 years microfinance has reached almost 130 people worldwide. While the implementation is different based on cultures and countries, the principles of needs assessment, training, funding, mentoring and networking are universal.

While we often associate microfinance with the developing world, Rotary projects are underway in Detroit, MI; Raleigh, NC; and here in District 5240.  In 2012, the Rotary Club of Simi Sunrise was awarded the first Rotary Foundation Grant for microfinance in the developed world. The grant had three components – outreach to the Hispanic community; creation of a Spanish language self-employment training curriculum; and a revolving loan fund. The grant was administered with Rotarian involvement and oversight by Women’s Economic Ventures - a non-profit organization with a 27-year track record of providing small business training, technical assistance and micro loans. As of September 2018, the grant has provided $307,000 in microfinance loans, experienced a payback rate of 97%, and contributes $3,600,000 annually to our local economy. The grant  loan fund continues to create new businesses and jobs in our district. 

Looking for more information. The Rotarian Action Group for Microfinance and Community Development (RAGM) provides advisors and mentors to Rotarians interested in microfinance projects.  Its members are available to help as you look for ways to change lives in our community or in communities around the world. Click on the button below for the brochure, visit them at www.ragm.org or contact PDG Nick Frankle (nickdg1617@earthlink.net).