[Congressional Record Volume 143, Number 27 (Wednesday, March 5, 1997)]
[Extensions of Remarks]
[Page E384]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   MICROCREDITS ARE ABOUT EMPOWERMENT

                                 ______
                                 

                           HON. DAN SCHAEFER

                              of colorado

                    in the house of representatives

                        Wednesday, March 5, 1997

  Mr. DAN SCHAEFER of Colorado. Mr. Speaker, I recently had the 
privilege of participating in the microcredit summit held here in 
Washington. I wanted to take time to introduce this worthwhile program 
to you.
  Poverty--be it in rich or poor nations--makes not just affected 
families and their surrounding communities vulnerable, it erodes the 
fabric of the nations in which they live.
  One of the best and most effective uses of American foreign aid to 
combat poverty is through microcredits, the loaning of small amounts of 
capital, usually around $150, to indigent entrepreneurs to start their 
own small businesses.
  What are microcredits about? They are about empowerment. The 
beneficiaries of this aid tend to be predominately women. The program 
has an astounding rate of success; 98 percent of loans are repaid on 
time and, in fact, many of the banks set up to disburse microcredit 
loans have gone on to become successful full-service banks.
  The goal of the recently held summit was to begin the process of 
assisting 100 million of the globe's poorest families work their way 
out of poverty by the year 2005. These budding entrepreneurs will use 
this money as an investment. The more money invested in this fashion 
will decrease traditional foreign aid handouts in the long run.
  I would like to commend microcredit experts who have shown what 
creative thinking can accomplish, even when applied to an entrenched 
and stubborn problem such as poverty. This solution holds real promise, 
not only around the globe, but here in the United States as well. I 
encourage all my colleagues to investigate this program and to lend 
your support.

                          ____________________