    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [April 16, 1998]
    [Page 575]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in a Discussion on Microenterprise in Santiago, Chile
    April 16, 1998

        Audience member. Mr. President, in your country, does
    microenterprise exist? Is there any special legislation for
    microenterprise? Do you have any support programs like we have here?
        The President. First of all, yes, it exists. And in the more
    prosperous areas of America, people can simply go to established
    training programs, as you have described, and then they typically will
    go to work for someone else, or if there is a demand there, they can
    often--can get credit from a bank and borrow money.
        But in the poorer areas of America--because, keep in mind, there are
    still some parts of our country which are much poorer than others,
    mostly in the inner cities of our large cities, in some neighborhoods,
    or in some of our rural areas, or with some of our native Indian
    populations, where people are living a long way from the center of
    economic activity. And the truth is that in some places there are
    special programs to give credits, but in most places there aren't.
        Now, when Hillary and I were living at home in Arkansas, we helped
    to start a bank to lend to small-business people with a special program
    for microentrepreneurs, for very small loans to people who were poor but
    who had good skills, good reputation, clearly would pay the money back.
    And then when I became President, we worked to pass through the Congress
    a modest program--as Mrs. Frei said, within the budget--but a modest
    program to set up institutions like this all across America.
        In addition to that, we have, through our foreign aid programs--we
    are trying to support people like you all over the world. I just--we
    visited in Africa with some microentrepreneurs just recently. And every
    year, through our programs, we make about 2 million small loans across
    the world to people like you, because you really are the future of all
    these countries. I mean, if people like you--the stories you've told,
    that is the future. And as far as I know, the worst repayment rate
    anywhere in the world for microenterprise loans--the worst--is 97
    percent. Some countries that have terrible weather problems, poor people
    go broke if they have a bad storm and they can't pay it back, and it
    drops all the way to 97 percent. Otherwise, it's always 99, 100 percent;
    you know, the people pay it back. So that's why I wanted to hear your
    stories.
        But on the other hand, I agree with Mrs. Frei
    that the most important thing is to first have the training, because if
    you have it in your head--still many people find a way to get into
    business, to save or to borrow or to whatever.

    Note: The President spoke at approximately 1:20 p.m. in the San Miguel
    neighborhood. In his remarks, he referred to Marta Frei, wife of
    President Eduardo Frei of Chile. A tape was not available for
    verification of the content of these remarks.