Oikocredit
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Oikocredit is a cooperative established by the World Council of Churches to offer microfinance in developing countries. "Started as a pioneer in the field of development financing, Oikocredit is today one of the largest financiers of the microfinance sector worldwide," it declares. "Oikocredit is one of the few ethical investment funds, which finances development projects in the South benefiting disadvantaged and marginalised people."
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[edit] Whats in a name?
The name Oikocredit (Ecumenical Development Cooperative Society) emphasizes the heart of the groups mission. Oiko refers to the ancient Greek word Oikos meaning house, community or world in harmony. It forms the roots of the concepts like ecumenism, economy, and ecology, all essential elements in the life of our organisation. Credit not only refers to the fact that we give loans to the poor, but also to the Latin verb credere, to believe.
[edit] History
Founded by the WCC in 1975 as the Ecumenical Development Cooperative Society, Oikocredit has headquarters in Amersfoort, the Netherlands. As of the end of 2004 it had share capital of 203.5 million Euros and in recent years has offered a dividend of two per cent on investments. It reported that less than 10 per cent of the funds disbursed since 1975 had been written off.
[edit] Structure
Oikocredit is a Cooperative Society in accordance with Dutch Law. All direct members have one vote, irrespective of the number of shares they hold. That means that within Oikocredit people have the final say, not capital. The AGM - the highest ruling body of Oikocredit - is held once a year before the end of June. All members are invited to attend the AGM, participate in dialogue and debate, to propose resolutions and use their right to vote (though only direct members have voting rights at the AGM).
[edit] Mission, Vision and Values
Mission
Oikocredit,as a world wide cooperative society, promotes global justice by challenging people, churches and others to share their resources through socially responsible investments and by empowering disadvantaged people with credit. [1]
Vision
Oikocredit will be a highly respected and leading provider of opportunities for socially responsible investments and credit for development.
Values
Sharing - An uneven distribution of resources, wealth and power lead to a world of conflict. When people in the North, South, East and West are prepared to share what they have, respect each other and cooperate, justice and peace can rule the world. Oikocredit provides a mechanism for meaningful sharing.
Ecumenical Spirit - Around the world people of faith are willing to share their resources. Oikocredit forms part of that worldwide coalition of solidarity.
Grassroots - Development is most effective when it stems from the grassroots in the South and North. In the cooperative culture of Oikocredit, people's initiative and participation are central in all acts and policies.
People - All people are created equal. Oikocredit thus extends credit to marginalised people irrespective of their faith, ciulture, age, or gender and even favours intiatives of women, as they are the backbone pof their families and thus society as a whole.
Integrity - Respect between people implies honesty and truythfulness. Oikocredit's determination is to listen with an open mind and communicate in full transparency on all the parameters of its own policies. A code of conduct for those who determine the Oikocredit course is part and parcel of this principle.
Creation - A wholesome eco-system is the basis for life. Animals, speicies and biodiversity should thus be preserved. Oikocredit believes that a healthy balance in nature can only be achieved in a world of evenly spread resources and power.
[edit] Oikocredit regional office for South East Asia
Oikocredit's regional office for South East Asia (SEA) is based in Quezon City, Manila, Philippines. It has 4 full time members of staff and acts as a conduit for its satellite offices in Cambodia and Indonesia, and its head office in Holland.
The office mainly deals in the day to day processing of loan applications, but also actively seeks out new investors as well as assisting their colleagues in Cambodia and Indonesia.
In the same Manila office are the Philippine Support Association (PSA)and the Philippine Office of Oikocredit. The former seeking new and renewed support for the organisation, and the latter focusing on assisting the Philippine project partners such as Alter Trade, or UMFI.
The regional office has a small volunteer program which is open to Filipinos and non-Filipinos alike. Past non-Filipino volunteers mainly come from northern Europe and the UK.
As of third quarter 2007 the SEA office had 67 approved projects running. 4 of these were in line to be cancelled, 11 of these were repeat loans (including one to CARD),4 third loans and seven loans fully paid. In total there were 41 active projects, with the majority of these being in the Philippines (36), and Cambodia (5). Indonesia has at least 4 projects in the pipeline.
[edit] Focus Countries
Asia: Cambodia,India,Indonesia,Philippines
Africa: Botswana, Ivory Coast (Cote d'Ivoire), Ghana, Kenya, Mali, Senegal, South Africa, Tanzania, Uganda, Zimbabwe
Latin America: Argentina,Bolivia,Brazil,Chile,Costa Rica,Dominican Republic,Ecuador,El Salvador,Guatemala,Mexico,Nicaragua,Paraguay,Peru and Uruguay
Europe: Bulgaria,Romania,Slovak Republic,Ukraine
Most of Oikocredit's oustanding capital (49%) is placed in Latin America. For the nextr few years the aim is to significantly expand operations in Asia (currently 14%) and to strenthen activities in Africa (18%).
[edit] Project Criteria
Qualifications
1. The enterprise must benefit the poor and disadvantaged people, especially women.
2. Benefits must be widely distributed andnot result in the enrichment of only a few organiser and investors.
3. The enterprise must contribute to the social and economic advancement of the larger community in which it is located.
4. Special attention must be poaid to ecological impact and protection of animals and species.
5. The cooperative structure is favoured but legally registered community groups or associations, non-government organisations working with communities, and trade associations may also submit proposals.
Preferences, Roles and Participation
1. Poor people should be actually involved in business managementand operation.
2. Preference should be given to enterpprises in which women are not only direct beneficiaries but are actually part of the enterprise structure and involved in conceptualisation, decision-making, organisation, implementation, control and evaulation.
Viability and Stability
1. The enterprise must beactually involved in business management and operation.
2. The enterprise must have management systems in place and technical expertise available.
3. The enterprise must be self-sustaining within a reasonable period of time, allowing Oikocredit's capital participation, loan or guarantee to be phased out.
4. There must be a clear need fopr foreign investment that can be provided with the necessary government approval.
[edit] Loan Security
Oikocredit accepts loan agreements where many other financial institutions say no. being a development financing institution, Oikocredit demands loan securities from its partners, but differs from conventional banks, which normally ask for a full 100% collateral. Oikocredit asks for collateral/securities to the extent this is available. For oikocreit the most importnat is whether the project is sound and viable and whether the beneficiaries are really coimmitted to the project. Commitment is, in the view of Oikocredit,the best security there is.
[edit] References
- ^ Taken from the Oikocredit reference manual, May 2006, Oikocredit International Support Office, Amersfoort, Holland
1. Taken from the Oikocredit reference manual, May 2006, Oikocredit International Support Office, Amersfoort, The Netherlands
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