While throwing feeds for chickens in the compound of her house, a widow woman said with smile, "Because of these chickens, my living is better than previous years." In her 55 years of living and with seven children, Mrs. Khan Trang struggled to survive by running an honest business in order to live with dignity in the society.

Mongol receives award from David Mueller

With a loan of 150,000 Riels (37.50 USD) from the village bank in Thmey Village, Rong Roeung Commune, Tpong District, Kampong Speu Province, about 10 Km from the National Road No. 4, Mrs. Trang set up a small business in her house raising pigs, chickens and fish in addition to planting vegetables and rice. Every three months, she sold these animals and earned between 200,000 and 250,000 Riels (50-62.50 USD). "With money from selling, I buy some baby chickens and pigs and fish feeds and I use the remaining money for miscellaneous purposes,” she said, her expression turned a bit serious. “ Without this money, I will be in hardship."

Mrs. Trang was one of many villagers who got a loan from the village bank. Mr. San Vinich, LWF Project Manager in Tpong District, said the village bank was established to give loans to villagers to set up small businesses in order to generate income for supporting their families. The bank was established by the villagers themselves after LWF trained them how to prepare paperwork, statute, procedures for borrowing and repaying the bank, punishment for failing to repay and how to safely keep records and money. Mr. Vinich said so far there was no negative case involving punishment for failure to repay as all villagers always repay loans to the bank. Mr. Vinich continued to say that at the beginning, each villager had to contribute a deposit to the bank between 300 Riels and 500 Riels (0.07-0.12 USD) per week for 8 to 12 weeks, and then the bank had to report to LWF.

Mongol interviews villager

"After reviewing and finding that the documentations are correct, LWF provides a grant to the village bank based on the number of members, each member receives 120,000 Riels (30 USD),” he stated. “For example, if the bank has 20 members, LWF will multiply 20 by 120,000 Riels. The total amount of money will be used by the village bank as per the needs of its members without interference from LWF."

Regarding the village bank, Mr. Leak Ratna, Communications Coordinator of LWF, said there were 39 village banks with 1,699 persons/households as members in Thpong District. Since the start of village bank project in 1996 to 31 March 2008, LWF provided assistance to 253 village banks in its three operation areas of Kampong Speu, Kampong Chhnang and Battambang with the total members of 8,788 persons/households, he said. Mr. Leak Ratna also stated that when the village banks become stronger, four or five banks can join together to establish the association of village banks under supervision of a commune or district level.

Speaking at a workshop on ‘Development of Cambodia’ at Sunway Hotel organized by LWF and Cambodian Club of Journalists, Mr. David Mueller, LWF Cambodia country representative, talked about the importance of development, including the establishment of village banks in rural areas. He said in the past 29 years, LWF had supported the government in development work in order to reduce the poverty of farmers.

H.E Sao Chivoan, who was also a speaker at the workshop, agreed that rural development helped reduced poverty.

"With contributions from various organizations, including LWF, to rural development the number of people living below poverty line has dropped from 47% in 1994 to 34% in 2004 and we hope that this number will continue to drop further,” he added.

Mrs. Khan Trang appreciated LWF development projects, especially village banks that improved her livelihoods and the livelihoods of some other villagers who are the partners of the project.

"I would like to request LWF to continue to support village bank project as it helps other poor people to have business and better life like me. However, they have to be patient and work hard,” she said.
                  
About 8,788 persons/households benefited from village banks in the provinces of Kampong Speu, Kampong Chhnang and Battambang under LWF support.