The Socio-Economic Impact of the Grameen Bank Replication Project in Santa Cruz, Laguna

Abstract

The purpose of this study is to determine whether the microlending concept developed by an Economics professor in Bangladesh, Prof. Muhammad Yunus, PhD. [author of the Grameen Bank (GB) and Grameen Bank Replication Program (GBRP), and adopted here in the Philippines would really be effective in uplifting the socio-economic level of our countrymen at Santa Cruz, Laguna. The GBRP here in the Philippines was evaluated through this study on the impact on the lives of people (participants) who got a loan or loans from either the Cooperative Rural Bank of Laguna or Kalipunan ng mga Samahan ng Mamamayan - Federal People’s Organization (KASAMA-FPO). This program was envisioned to be a catalyst for the upliftment of the “poor people’s” social and economic status. Through the questionnaire and interview results, a positive impact on the clients of the program (participants) was strongly indicated. Participants were between the ages 29-39 who were either single or widowed, living alone or living with relatives, compared to nonparticipants who were between the ages 40-50 where their families were characterized as having 2 children, a mother and a father. Participants and non-participants were found to have secondary education which enabled them to face challenges in the workplace or livelihood projects where they mostly get a net monthly income of exactly or above Php 1,200. Participants were then able to save the same amount of money while non-participants refused to disclose the amount of their savings. Both the clients of the GBRP and the nonparticipants also got some income from charity like those who are not part of the program or borrowed money from friends and family when credit is needed. But clients have an alternative, the Grameen Bank Replication Program or GBRP. Throughout time, families were able to improve their homes. Both participants and non-participants have homes with steel roofing and cemented walls and have private bathrooms shared with at most a family of 8. This 1s considered more urbanized than other provinces with no toilets at all. The practice of collecting, pick-up and disposing of garbage in dump trucks provided by the local government are shared by both participants and nonparticipants, although some non-clienteles burn or bury their trash in a landfill. When the breadwinners of the family are tired or take time off from work, they watch television or movies to relax their minds and bodies. Vacationing has been an alternative to them and joining ‘religious or cooperative groups, non-governmental organizations has been important to them too. The findings show many similarities and differences in the attitude and properties acquired by the 2 groups being compared. Participants show an improvement in their social and economic wellbeing from the time they joined the program and in the present. The program has been successful in attaining its goal of uplifting the socio-economic status of the bottom poor, making our country more stable and achieving a more sustainable growth. Other factors may have been contributory in the results, that is why it is encouraged that other studies be done as well.