This year we were able to make our long-awaited trip to Cambodia for the first time in three years, and were able to inspect and monitor each project site where there had been a two-year blank.
The local people we met for the first time in a long time welcomed us with open arms, and we were able to see firsthand the current status of the region and the progress of the projects.
Thanks to the continuous guidance by the local trainers, the new project "Buddha Cooperative" in Battambang Province, which we had requested remotely since 2020, has managed to get on track and is certainly contributing to the independence and development of the village. The project is now on track thanks to the continuous guidance of the local trainers.
Overview of the Saving Group (Buddha Cooperative) and how it operates
Started with the $50 per family emergency assistance from CEP at the time of the 2019 floods, which will be repaid after one year.
Each group elects 3 officers of the steering committee and decides who will be the representative, secretary, treasurer, etc.
Each group meets and decides on rules such as the regular meeting cycle (weekly or monthly), maximum loan or deposit amount, interest rate, and loan repayment period (monthly or one-year lump-sum repayment).
Prospective borrowers apply for the purpose of the loan, the amount borrowed, and the repayment period, and the committee examines the application and makes a decision on the loan.
In addition to the loan facility, each member makes a monthly deposit according to his/her own situation, which is distributed at the end of the one-year cycle according to the amount of each member's deposit.
Interest is applied to the committee's operating expenses (10%), executive allowance (30%), and emergency reserves (10%), and the remaining 50% is added to the distribution to each member who made a deposit.
Project Implementation
<Prepreal Village in Battambang Province>
32 participants at the start of the program → 47 currently due to new applicants after the start of the program
Small loans started in March 2022, one-year loan to be fully repaid in February 2023, with an interest rate of 1.5%.
The loan was used by 75% of the members for seed, fertilizer, pesticides, and cultivation, 20% for raising chickens and ducks, and 5% for transportation during the building site group's migrations and for transporting rice, corn, and other grains.
Saving is done by depositing 1,000-25,000 riel per person at the monthly meeting, and the entire group contributes 150$ per month.
This reserve fund will mature in February 2023, one year from now, and will be distributed to the members according to the amount deposited.
<Tangen Village in Battambang province>
They have 3 groups, and the participants are 144 people all together.
Group 1: 67 of which 35 Loans, 36 Savings (4 joined later)
1 year loan, 2.5% interest rate
Group 2: 47 participants of which 30 are loans and 30 are savings (1 participant joined later)
1 year loan, 1.5% interest
Group 3: 30 of which 12 are loans and 12 are savings
1-year loan, 1.5% interest rate
Groups 2 and 3 are very motivated, with about 80% of the participants being women.
However, this year, as in the year before last, there was a lot of rainfall during the rainy season, and some areas were damaged by floods, so they have not been able to make deposits for the past several months.
The loans are mainly used to pay for seed and fertilizer for cultivation, but if the rice crop continues to be poor, there is concern that repayment will be delayed until next February.
Group 1 was mainly run by Mr. Von, one of the representative committee members, who was in charge of managing the repayment of funds, but he had a heart attack in September and was unable to take over his duties, leaving the group with unresolved issues.
Mr. Von's nephew became the new committee member, but it was difficult just to keep track of the names and addresses of the members. In addition, some members had not yet repaid the first $50 and some had gone to Thailand to work.
After a few months of waiting and seeing how things go, the committee approved that any member who did not respond at that point would be automatically dropped and the group would start anew with only the current members.
Advantages of the Savings Group and what members say they like about participating (comments from members)
>It is good to be able to save a little money every month, and receive the money one year later.
(The lecture teaches the concept and method of prioritizing when spending money, paying for necessary items first, and reducing unnecessary expenses and putting that money into savings.)
>It is good to be able to borrow money without collateral to pay for rice seeds, fertilizers, insecticides, etc. needed for farming.
>It is also good to be able to borrow money from the group for unexpected expenses or emergencies such as illness, injury, or funerals.
As for the rice banks in the two villages in Battambang Province, the rice yield has been declining for the past few years due to natural disasters and corona, and the repayment of seed money is not going well.
In particular, two of the committee members in Tangen village have been unable to manage the rice bank due to illness or injury, and since many of the members overlap with the saving group, there was a suggestion to abolish the rice bank and merge it with the saving group. However, due to repeated climate change, a shortage of rice is possible in the future, and it was decided that it would be better to continue the rice bank even if the yield is low, in case of an emergency.
In the village of Tangen, it was decided that a new board member should be elected as soon as possible to replace two board members who are no longer able to work.
In Preypreal village, on the contrary, the amount of rice to be stocked has increased due to the increase in the number of members, and the storehouse in the leader's house is no longer sufficient. They wanted to build a new rice granary, and although they had already secured land, they were unable to raise the money to pay for the materials.
We have been talking about a new rice warehouse for a long time, and we thought it would be necessary sooner or later, but at this point, even the funds they have saved from saving are not enough, so we decided to bring the matter back for further consideration.
<Tropean Weng Village in Kampong Spoe Province>
42 rice bank members harvested approx. 7,000 kg
Although last year's harvest was good, due in part to the corona, the repayment situation for the seed was not good. Two of the members have passed away, and they do not know how to deal with the situation and are afraid to demand repayment. It seemed that the members were not communicating well with each other.
＜Snoul Village, Kampong Spoe Province>
Rice Bank 102 members, harvested about 10,000 kg
The rice harvest itself was not so bad, but the aging of the members was making it difficult to manage the harvest.
A joint proposal from the two villages was to abolish the rice bank and start a new cattle breeding business. Their plan was to start with four cows in each village and gradually increase the number of cows.
One cow costs about $750, so four cows would cost $3,000, or $6,000 in total for two villages.
He said that the stockpile of rice in Tropeanweng Village is about 250$ and 300$ in Snoul Village, and that he would like us to sell the stockpiled rice and support the remaining amount. We answered them to hold the proposal with them and consider it.
Besides, I proposed the establishment of a saving group (Buddha Cooperative) similar to the two villages in Battambang Province, but both villages did not agree to the idea. The reason for this was that another NGO had come before to explain the saving program, but the system was too complicated for them to understand, and it seemed difficult to operate.
I later heard that various NGOs have their own ways of developing this saving group program, and some of them have detailed procedures and rules that give the impression of being complicated, and I suspect that this is probably what they heard.
At the last, the proposal to establish saving groups in two villages in Kompong Speu Province did not materialize.
In these two villages, Buddha Ponds 4 and 5 are kept in very good condition and serve as an important water resource for the community throughout the year, and vegetables are grown on their house grounds, although only a little, so it seems that some effort is being made.
<Project Summary and Future Prospects>
With the exception of the village of Prey Prier, the rice banks do not seem to be doing very well. This may be due to various factors such as aging members, climate change, corona, etc. However, compared to the well-organized operating rules and management system of the Saving Group, there are many things to reflect on, such as the lack of a solid system from the beginning, and the lack of continuous guidance and monitoring. We felt that there were many points that needed to be reflected on.
However, the solidarity among the members that has been nurtured over the years and the fact that rice is the lifeblood of villagers in the event of natural disasters that are feared to occur frequently in the future make it desirable for the group to continue to exist in whatever form it may take. Therefore, I think it is necessary to improve the constitution to make it as current as possible, including the renewal of the committee members.
As an urgent issue, we would like to find a compromise on how to respond to the proposal for cattle breeding submitted by Tropeanweng and Snoul villages, while listening to their opinions and requests.
As for the Savings Group, the biggest challenge will be whether the repayment of the loan will be made on time as the loan is due in February 2023.
We are very sorry that Mr. Toeun, the trainer of the group, has been visiting us several times over the original contracted schedule due to various problems at Tangen Village, but thanks to his great efforts, the group has finally started to get off the ground. We hope that he will be able to successfully repay the loan and pass the baton to the next borrower.
Mr. Toeun also suggested that we extend the trainer's contract for another year to further solidify the program, and we have decided to ask for guidance and monitoring about four times a year for the next fiscal year.
We would like to take one more year to slowly establish the program, and to establish a system in which villagers can operate and manage the saving group completely on their own.
The goal is to use the saving funds not only to pay for rice cultivation, as has already been done in the village of Preypreal, but also to support the establishment of local industries such as poultry and vegetable cultivation to supplement rice cultivation, which is becoming increasingly unstable, and to help the community achieve self-sufficiency and development.
Pooling funds in preparation for natural disasters and emergencies that may occur at any time will become even more important for the stability of the region in the future.
Write a comment