Microfinance institutions step up relief for quake-hit Haitians

By Nagesh Narayana

Haiti quake (Courtesy: Accion)

Microfinance Focus, Jan. 30, 2010: In the past, microfinance services have helped to empower and provide stability for poor Haitians but the need is far greater now with the 7.0 magnitude earthquake devastating the nation on January 12 and leaving 200,000 dead. Those who survived were left without food and water for days and many children became orphans overnight.

Interestingly, many microfinance institutions were among the first to take up the task of providing relief to survivors and coordinate relief efforts all over the Carribeean nation. Grameen Foundation and their local Haiti partner Fonkoze have successfully helped families recover from the natural disaster in Haiti.

Despite the devastation, Fonkoze has been able to quickly reopen 37 of its 42 branches, including the main branch in Port-au-Prince. Within the first week of re-opening these branches, Fonkoze delivered more than $1 million in remittances and savings to Haitians. The MFI’s tenacious leader, Anne Hastings, worked quickly to bring in an additional $2 million from its account at the City National Bank of New Jersey, working through a unique collaboration of the United Nations, USAID, the U.S. State Department, the U.S. Department of Defense, and City National Bank.

Overcoming insurmountable odds, the U.S. military and the United Nations then helped Fonkoze devise a plan to drop bags of money at designated rural locations for pick up by Fonkoze’s rural branches. The money traveled from City National Bank of New Jersey to Miami where it was picked up by a military C-17 en route to Port-au-Prince. Helicopters were used to drop discretely packed boxes of money to Fonkoze branch locations. The deliveries enabled branches to continue to pay out money sent from abroad and withdrawals from savings accounts.

ACCION joins Haiti partner SOGESOL

ACCION too responded to the devastation in Port-au-Prince. “The capital is no more,” said Cassandre Dupont, ACCION Resident Advisor to our Haitian microfinance partner SOGESOL, who was fortunate to escape from SOGESOL’s headquarters in Port-au-Prince during the devastating earthquake. Unfortunately, the quake has left no one untouched. ACCION and SOGESOL are now working hard to search for missing staff members and locate the institution’s thousands of microentrepreneur clients to help them rebuild their shaken futures.

WORLD VISION never lost sight of child victims

Another microfinance institution World Vision, a Christian humanitarian charity organization that is dedicated to working with children, families, and their communities worldwide moved in and despatched its staff to rescue people still caught in the debris. World Vision began distributing relief supplies less than 24 hours after Haiti’s 7.0 magnitude earthquake struck January 12. The organization continues to distribute food and supplies, as well as support medical efforts and encourage the protection of children following the crisis. In the United States, World Vision is appealing to Americans to raise $50 million to fund relief and rebuilding efforts in Haiti.

FINCA International intensifies relief efforts

Realizing that Haiti is in great need of financial assistance and guidance as the country recovers from the earthquake and rebuilds, FINCA International with 20 years of presence in Haiti serving clients with their Village Banking method. Members of their offices were evacuated from Port-au-Prince and Fortunately all their 180-memeber staff were safe, and showed up for work the day after the quake to help their clients. As relief efforts unfolded, companies who contribute to FINCA’s microfinance programs share that optimistic view and stand by FINCA and it’s clients, anxious and hopeful that this disaster has not damaged Haiti’s newly found entrepreneurial spirit.

Economic growth has been challenging in Haiti, years of civil unrest, government corruption, and natural disasters have taken a significant toll. “It has often been difficult to raise money for Haiti as the country is so poor. Ironically, the need is so, so great,”

said Diane Jones, FINCA’s Communications Manager. “In many ways, the world had turned it’s back on Haiti until recently.” A slight increase in Haiti’s GDP in the last few years is attributed to intervention from non-governmental organizations which aid in the stabilization of government. However, a majority of Haiti’s population still exist in abject poverty made more desperate by the devastation caused in the 7.0 earthquake.

“The relief effort is intense right now, and we know that Haiti needs food, water and medicine immediately, but Haiti will also need foundational support for it’s economy,”says Kat Fitzgerald, Director of Communications at Brown Paper Tickets, one of FINCA’S contributing companies. “Brown Paper Tickets has chosen microfinance as part of our corporate giving program because it brings about such a fundamental change, one that we hope makes a society more resilient even at times like these, but really it’s a long term investment. We know it can never replace the critical humanitarian efforts to bring food, water, and shelter to a desperate people. In the long term, we believe microfinance will empower the Haitian people to grab opportunity, rebuild, and turn the rubble into a future for their children.”

Brown Paper Tickets donates 5% of it’s profits to charitable organizations and FINCA, allows customers to participate in the giving process at the end of each online transaction when ticket buyers select a charitable category. By selecting microfinance, a portion of those funds are directed to FINCA and similar organizations. “These monies won’t stop after helping one group or even one city,” says Fitzgerald. “As the loans are repaid they are re-loaned making a difference with the same dollar over and again. When a customer allocates 5% of a ticket sale’s profit to microloans it may not seem like much, but when it stays in the microloan system, the pennies add up and it can help thousands of people climb out of poverty and then raise up their communities. That’s the power village banking holds for Haiti.”

ESPARANZA raises funds from sports bodies

As the impact of Haiti’s earthquake became known to the entire world, even sportspersons and Hollywood actors came out to lend a helping hand to the tiny nation. Major League baseball players on Thursday pledged their long-term support of relief and recovery efforts in Haiti by committing up to $ 1 million from the Major League Baseball Players Trust. Beginning with immediate $100,000 contributions each to Esperanza International and Medicines for Humanity, over the next five years the Players Trust will provide grants totaling up to one million dollars to support the efforts of non-profit organizations working to help Haiti recover from the devastating effects of the earthquake.
Esperanza has been working in Haiti since 2005 and is leading a coordinated rapid response effort of over 150 local organizations, providing food packs, water, bedding and hygiene kits to thousands of families. Esperanza plans to help Haiti’s economic development efforts by growing their established microfinance program and providing housing and educational opportunities to the children.

Actor Jackman joins hands with World Vision

Hollywood actor Hugh Jackman has taped a series of public service announcements urging support for humanitarian agency World Vision’s Haitian earthquake relief response. The announcements will air on television stations and on social media platforms in the United States, Australia, the United Kingdom, Canada and other countries where the aid group is fundraising for its Haiti response.
“The earthquake in Haiti left thousands of children homeless and vulnerable,” said Jackman. “World Vision aid workers have been rushing life-saving relief to survivors. Join me in standing with the people of Haiti.” In the United States, World Vision is appealing to Americans to raise $50 million to fund relief and rebuilding efforts in Haiti.

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