European Stars and Stripes (Newspaper) - April 23, 1990, Darmstadt, Hesse                                A one of the few members who know How to read and write signs a loan agreement at the Village Bank of Portail Montrois ii St. Marc Haiti other members signed with  banking breaking the grip of poverty editors note John Hatch the founder of the non profit foundation for International Community assistance promotes Village banking to encourage private Enterprise in the third world. What he foresees is a body blow to world poverty through Bootstrap economics. By Arthur h. Rotstein associated press John Hatch says he hit upon his third world Quot poverty vaccination Quot while panic stricken on a flight to Bolivia. He had decided that he could not comply with the requirements of a consulting Job that he had accepted from the Agency for International development and he was scrambling to come up with a suitable substitute. Quot and on my second double Bourbon at 35,000 feet up flying Over the Andes i have to say it was like this thought just rolled through my body Quot Hatch recalls. Quot i had my calculator out and i was sketching this thing and i was doing numbers and i arrived in la Paz with a full blown  what he had stumbled upon was Village banking a system of investment using Small revolving Loans to poor women to finance their private Enterprise allowing them to create savings while paying interest and qualifying for bigger Loans. The series of Loans starting at $50, is renewable Over three years to a ceiling of $300, allowing recipients to reach a level at which they can qualify for commercial credit. What Hatch envisioned on that plane five years ago has translated into 400 Village Banks in nine countries with More than 35,000 members. Portfolios total $1.6 million with a 96 percent repayment rate. Village Banks Are operating in Mexico Haiti Thailand Guatemala Honduras Costa Rica Bolivia Peru and Al Salvador. The concept is similar to the one behind the Graveen Bank of Bangladesh changeling Money to the impoverished principally mothers without the demands of commercial Banks for collateral so they can improve their families lives. A Village Bank founder John Hatch of Tucson aria. What Hatch foresees is a body blow to world poverty through Bootstrap economics. Hatch a one time peace corps Volunteer with a doctorate in economic development is the founder and president of the non profit foundation for International Community assistance which recently moved its Headquarters from Tucson ariz., to Alexandria a. He says its impetus was and remains the thousands of children worldwide who die daily because of starvation what he Calls the sacrifice of Quot probably our most precious  Hatch focuses on reaching mothers in the belief that strengthening them economically lets them care for their children better. There is Quot almost a 100 percent guarantee Quot that increased income for women will improve their children s welfare he says. Quot we teach severely poor mothers How to create their own self managed Bank which provides them with self employment Loans provides them with savings incentives and provides them with a support group of mothers like themselves so that they Are All attacking change at the same  i Lawrence Yanovitch the coordinator of the pro Oral of Small Enterprise development for Catholic Relief 1 services in Baltimore md., says Quot John Hatch is Clos j to the voice of the poor. Though he a come up with a some sophisticated economic tools he s kept the i  i Catholic Relief services entered a five year $1 i million joint venture a year ago with the . Agency a International development and the foundation to Ere j 40 Village Banks in Thailand. A they targeted Micro Enterprise development thro j Small entrepreneurs vendors Village Market women a who in some developing countries comprise up to 501 percent of the employment. I capitalization for one Bank typically will Cost a i sponsoring Agency $5,000. I Beryl Rupp a rotary club official in Phoenix says i the Bank members buy necessities with their profits of savings a chair to sit on pots to Cook in blankets better food. I the women when asked speak of the greatest Benefit in terms of what Hatch Calls Quot empowerment  Quot they say things like a now in a somebody or my husband respects me More a a their vehicle for improvement is the Village Bank each comprised of 30 to 50 women who through sea Loans can earn enough to provide savings and create capital. Hatch says the Loans give them Freedom to Start their own investment projects in or near Home. The foundation will go into a Village with a joint venture partner that puts up at least half of the capitalization such As rotary clubs or Catholic Relief services and identify a key woman. She then Contact others to attend an organizing meeting. Quot forget the mayor forget the priest forget the chief Quot Hatch says. Quot we want to know who the most powerful woman is in that  at the meeting the women Circle illustrated examples of Quick turnover work they want the Loans finance. It might be Selling produce groceries baked goods raising chickens sewing or craftwork. Each woman signs her name or provides a thumbprint As collateral agreeing to repay one sixteenth of the loan weekly plus interest of 1 percen to 3 percent in line with local Banks. In some countries the repayment rate has been 100 percent. Overall Thi average is 96 percent says Hatch. Quot fifty percent or More Are illiterate and i would say 90 percent of them done to have any idea of what they r getting into when we Start out Quot says Hatch. Quot and yet within 16 weeks they re All experts. They just learn As they go. Its amazing to  women who join the Bank screen members and ele their leaders from first meeting attendees. At the end of the 16th week each member s loan balance is Zero. But at the same time each woman a been depositing weekly savings of at least 20 percent of the original loan. The savings serve As incentive for subsequent Loans by increasing the credit line each time Hatch said. Interest in Village banking is mounting. The United nations has provided a $50,000 Grant to research the effects of women a empowerment Trouc Village banking on maternal and child health practices the foundation has major proposals pending with Agency for International development the Ford foundation Citibank and the Chase Manhattan among others. Rotary club 100, a Phoenix organization and a rotary club of Mexico City Are in a joint venture Navy funded five Village Banks in Gua Ymas Mexico i another four to be launched in the slums of mexi Hatch says he believes Village banking has a to e play in reducing poverty along the mexican Bor in slowing Down migration to the United states. As for whether such a system could work in the United states rotary a Rupp says Quot frankly i a a Only Hope we have of changing the welfare by Quot ultimately the Way out of poverty Issac mrs. Hatch adds. Quot its got to be built on the Back of the own  Page 16 a a a the stars and stripes monday april 23, 1990