FROM THE MARGINS

Aug. 17 to 24 is National Microfinance Week. It remains an important anti-poverty measure, now subsumed under the broader financial inclusion advocacy. With an enabling environment fostered by regulators, the Philippine microfinance industry continues to thrive, serving millions of poor families, micro-small-and-medium-enterprises (MSMEs) and other marginalized sectors. 

Christopher Gaba, a bangkero (boatman) from Coron, Palawan, joined a microfinance institution (MFI) in 2017. His wife was the first to join, and both of them appreciate the help that their MFI extends to members. He explains:

“Nakakabuti po ang MFI dahil sa panahon ng pangangailangan ay makakapag-loan ka. Marami ring benepisyo, halimbawa, kapag nagkasakit o ma-ospital kami ay mayroon kaming matatanggap (You can rely on the MFI to be there in time of need, as you can easily avail of loans. There are many advantages, like, benefits in case of sickness or hospitalization).”

Christopher is like many of the boatmen that I met a few weeks ago when I visited Coron. They, too, were happy to share stories about how microfinance helped their families.  I was in Palawan with long-time friends, Mr. and Mrs. Nguyen Luong Thanh, who I grew close to when I was based in Vietnam and working for an international organization that promotes credit and savings program for poor women in the Indo-China region.  Nguyen’s family has heard about Palawan and wanted to experience the pristine waters of Coron. We stayed at one of the island resorts, about 45 minutes from the mainland. Typhoon Egay was a bit of a spoiler, but when the water was calm enough, we decided to go on a boat cruise to appreciate the beauty of the island.  
Coron is breathtaking. The beauty of the Twin Lagoon had been preserved, making the uphill trek through the forests of Kayangan worth the effort.  We enjoyed swimming in the crystal-clear waters of Kayangan Lake and explored Barracuda Lake, paddling in kayaks and snorkeling.  The storm kept us in our rooms on the third day, but our spirits were lifted by fresh seafoods and native delicacies.  Stormy or not, Palawan is beautiful: the clear blue waters where one can see schools of fish, feel the fresh salty wind and hear the cheerful chirping of birds made our stay memorable.

Our Palawan sojourn was made even more special by stories about microentrepreneurs who were able to get back on their feet with the help of microfinance.

Jane Marcos is an insurance manager who also own and operate a coffee shop in Palawan. She joined an MFI in 2016. Starting from ₱10,000, she completed several loan cycles and opened the coffee shop with her brother in 2020. They were off to a good start, earning so much in the first few months. However, the pandemic changed everything. It was Jane’s resourcefulness that kept the business afloat. She utilized social media to advertise and sell online. She offered food deliveries. She also offered free internet onsite, so her shop became a haven for tourists stranded on the island. With the resurgence of tourism after the pandemic, Jane’s business is now booming again, bolstered by the ₱150,000 business loan from her MFI. Jane is an inspiration to her employees and other small entrepreneurs in the community.

On our way back to the airport, we dropped by Melb’s Cashew Factory, a popular store selling a variety of cashew products.  I was pleasantly surprised to learn that the owner is also a microfinance client. Gas Melba Esquivel joined the MFI during the pandemic because she had difficulty maintaining her business and meeting family expenses. She used to be an OFW, but became an entrepreneur later, using her savings to expand the cashew factory that she inherited from her parents. She uses the proceeds of her MFI loan to buy cashew nuts during the harvest season so that she will have a steady stock to sell. Her store is now doing very well, employing seven workers and catering to foreign and local tourists. Melba appreciates the ease with which she is able to borrow from her MFI even without collateral. Her fellow members had also been supportive of her business, patronizing and promoting her store by word of mouth. 

The boatmen that took us island-hopping have very inspiring stories about microfinance. Theirs are all stories of hope amid adversity, proof that Coron is now on its way to recovery. Businesses are flourishing — restaurants, coffee shops, souvenir shops, handicrafts, and other tourism-based enterprises are full of clients. I am also happy to note that most of the tourists are local tourists and balikbayans rather than foreigners. 

Our economy is slowly picking up. I am glad that somehow, microfinance continues to help our kababayans and MSMEs in the countryside. What Melba said reverberates in my mind: “I will never turn my back on my MFI because they were there for me when I had nothing and their help enabled me to grow my business.”

(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to eight million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)