Young people between the ages of 14-25 make up 20% of Latin America’s population. These youth face significant limitations in finding decent employment or accessing financing to start a business. The stresses of young adulthood, combined with the need to generate income, expose young people to a series of risks including sexually transmitted diseases, unplanned pregnancies, alcoholism and drug addition.

Pro Mujer determined that its integrated services methodology of credit, savings, training and health could be adapted to help young people mitigate these risks, finish their studies and build livelihoods for themselves. A grant from the Bill and Melinda Gates Foundation supports the development of the Youth Solidarity Group product in Bolivia.

The Youth Solidarity Group consists of 4-6 young people who receive one week of specialized pre-credit training. Once the group completes its training and all loan applications are approved, the group is then inserted into a Pro Mujer adult Communal Association (Village Bank) and functions within the existing Pro Mujer branch infrastructure. This is done to ensure efficiency, since folding the youth solidarity group into a larger group allows loan officers to increase their client capacity and productivity; and to allow the youth to learn from older, more experienced clients. In return the youth, who have had better access to education than many of their elders, bring these skills to the Communal Association.

Pro Mujer places special emphasis on savings in all of its products. When research showed that many young people are reluctant to take out a loan, Pro Mujer worked to incorporate those youth who demonstrate interest and potential but lack the experience and confidence to take out a loan. Of the six members of a youth solidarity group, two are permitted to be “savers only.” These members must go through the pre-credit training with the rest of their group, but are allowed a bit more experience prior to taking out a loan in order to build their confidence and capacity to manage a loan.

In addition to credit and savings, the youth product includes specialized pre-credit training covering a range of topics including cash flow analysis, business planning and a practicum. Youth receive ongoing training services related to business management and health and social development topics focused on common issues faced by young people such as un-planned pregnancy, malnutrition and puberty. Pro Mujer also provides its young clients with mentor services from staff members and adult clients. Finally, youth clients may access primary health care services via medical consultations at branch offices. This combination of financial, skills building, mentoring and health services helps young people create stronger economic and social foundations on which to build their futures.

Lara Storm-Swire
ldstorm@promujer.org

August 2006 to Present