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II INTER-AMERICAN AWARDS ON MICROENTERPISE

The Inter-American Development Bank announced the winners of its Inter-American Awards for Microenterprise Development, which recognize institutions and individuals who have made extraordinary contributions in support of microentrepreneurs in Latin America and the Caribbean.

Among the finalists were contestants from Bolivia, Chile, Colombia, Mexico, Peru and Uruguay. One of the winners operates successfully in a region beset by guerrillas; others have weathered financial crises and economic recessions. Several have overcome their dependence on donations and many have helped thousands of women to achieve economic independence. Beyond their individual traits, the people and the institutions recognized by the IDB share one quality: all of them provide outstanding support to the development of microenterprise, which plays a crucial economic and social role in Latin America and the Caribbean.

Microenterprises are the principal source of jobs in this region. More than 120 million people work in companies with less than 10 employees, a category that comprises over 80 percent of the region's businesses.

The forum organized by the IDB's Sustainable Development Division's Microenterprise Unit brought together leading authorities and practitioners in the fields of microenterprise and microfinance. Spain's Queen Sophia took part in some of the forum's sessions. "The forum showcased the best practices and the most innovative tools for promoting the development of microenterprise," said Marguerite Berger, chief of the IDB's Microenterprise Unit. "The meeting also fostered alliances among governments, donors and private sector and civil society organizations to improve and expand the array of services for microentrepreneurs."

The IDB, a pioneer in the financing of microenterprise in Latin America and the Caribbean, has devoted some $600 million to support more than 500 microenterprise- and microlending-related projects since 1978.

Winners and special mentions

More than 100 candidates took part in this contest for institutions and individuals that provide outstanding services and leadership in the development of microenterprise. The prizes and special mentions were awarded by a jury of IDB executive directors, managers and specialists.

Excellence in Microfinance Award for Regulated Institutions:

Caja Los Andes S.A. In addition to being Bolivia's most profitable microfinance institution, the La Paz-based Caja Los Andes has also managed to expand its client base and boost its rural lending and savings deposits despite a protracted recession. Armed with a clear business plan, Caja Los Andes has launched new services and products without hurting its efficiency or the quality of its assets. (www.cajalosandes.com))

Special mentions:

Banefe-Banco Santander. This Chilean financial institution is at the forefront of the commercial banks in tailoring its services for microentrepreneurs, proving that downscaling can be both feasible and profitable for large banking institutions. (www.banefe.cl)

Caja Municipal de Ahorro y Crédito de Arequipa. A leading institution in Peru, this municipal savings and loan company has consistently been highly productive and profitable. Caja Municipal is also poised for privatization. (www.cmac-arequipa.com.pe)

Excellence in Microfinance Award for Non Regulated Institutions (Foundations and NGOs):

Fundación Mundo Mujer de Popayán. This member of the Women's World Bank network has maintained extraordinary levels of efficiency even though it is based in a region overrun by guerrillas and Colombia is in a recession. Like other non profit microlenders, Fundación Mundo Mujer de Popayán has managed to reach the poorest entrepreneurs with very modest loans and still recover its costs. It has introduced innovations such as loans guaranteed with gold jewelry and hopes to launch other services such as factoring and smart cards (www.womensworldbanking.org/1000/Address/Colombia_FMMP.htm).

Special mention:

Asociación Programa Compartamos. This fast-growing Mexican program has reached its poorest rural clients through village banking. It lends to individual microentrepreneurs (99 percent of its clients are women) and solidarity groups. Compartamos expects to become a regulated financial institution, a step that will allow it to take deposits and expand its services (compartamos@compartamos.com).

Excellence in Business Development Services Award:

Fundasol. Besides its work in microlending and skills building courses for young entrepreneurs and former state workers, this Uruguayan NGO has developed a regional training program for microentrepreneurs. The non-profit Fundasol has adopted a successful business strategy that allows it to not depend on donations. (www.internet.com.uy/fundasol).

Excellence in Social Entrepreneurship Award:

María del Pilar Ramírez Muñoz. President of Fondo Financiero Privado FIE S.A. of La Paz. A pioneer of microlending in Bolivia, Ramírez Muñoz has been a trailblazer in promoting the cause of microenterprise in her country. She has also been a leading advocate of policies and programs for women in Latin America. FIE has become a self-supporting financial institution with branches in seven of Bolivia's nine departments. Among other innovations, FIE was the first Bolivian microfinance institution to offer its clients housing and home improvement loans (ffpfie@ceibo.entelnet.bo).

Special mention:

Raúl Diez Canseco. President of Asociación Pro Bienestar y Desarrollo (Probide) of Lima, Peru. A businessman who has been active in national politics and social causes, Diez Canseco launched a program called "Creer para Crear" (Spanish for believe to create) to foster entrepreneurship among disadvantaged youths. The program seeks to build alliances among the private sector, banks and universities. It holds competitions for young entrepreneurs and promotes mentorship programs that link enterprising youths with established businesspeople. (www.creerparacrear.org.pe).

Special Award for Excellence in Microenterprise Development:

Centro ACCION Microempresarial. A South American hub for the ACCION International network, this Bogotá-based foundation has stood out both as a second-tier microfinance institution and a training center. Its "Diálogo de Gestiones" (Managing Dialogue) program uses a method based on microentrepreneurs' own culture to develop its clients' management skills and make their businesses more competitive. Nearly 40,000 people have been trained using this method in 11 countries. (www.dialogodegestiones.com).

Last updated: 06/13/07