FAO FISHERIES TECHNICAL PAPER 440

FAO FISHERIES TECHNICAL PAPER 440

Microfinance
in Fisheries and Aquaculture

Guidelines and Case Studies

by
Uwe Tietze
Fishery Industries Division
FAO Fisheries Department
and
Lolita V. Villareal
FAO Consultant

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 2003

 

Table of Contents


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ISBN 92-5-104836-3
ISSN 0429-9345

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© FAO 2003

Cover photograph:
Artisanal fisherman in the Philippines. Virginia Kelleher.

U. Tietze and L.V. Villareal
Microfinance in fisheries and aquaculture: guidelines and case studies
FAO Fisheries Technical Paper. No. 440. Rome, FAO. 2003. 114 pp.

ABSTRACT

These guidelines provide general principles and basic considerations for those involved in providing microfinance services to fisheries and aquaculture and for those who intend to include fishing and fish farming communities as part of the client base of their operation. The guidelines further elaborate on lending models, methodologies and policies that have applicability to fisheries and address concerns that are particular to the sector, while adhering to best practices in the microfinance field.

The publication also contains a summary of the proceedings and recommendations of the Report of the Regional Workshop on Microfinance Programmes in Support of Responsible Aquaculture and Marine Capture Fisheries in Asia. The workshop was held in Chiang Mai, Thailand from 16 to 20 December 2002. An overview of recent experiences with microfinance programmes in fisheries and aquaculture in Asia is given and conclusions are drawn regarding future directions and initiatives in this field. The workshop was attended by 31 participants from eight South and Southeast Asian countries: Bangladesh, India, Malaysia, Nepal, the Philippines, Sri Lanka, Thailand and Viet Nam. It brought together experts representing fisheries government institutions, financial institutions, academic and research institutions, NGOs, cooperatives, women‘s unions, fishermen’s associations and technical staff of foreign-assisted projects in aquaculture in the region.

The publication concludes with two examples of successful FAO-executed projects that incorporated microfinance programmes in fishing community development in the Philippines and in small-scale aquaculture development in Viet Nam, with a special focus on gender and poverty alleviation. The case studies provide practical examples of how microcredit can contribute to the empowerment of women in fishing and fish farming communities, help alleviate poverty and contribute to the socio-economic wellbeing and food security of fishers and fish farmers.

Distribution:
Directors of Fisheries
Fisheries Research and Training Institutes - English speaking
Non-governmental organizations (NGOs)
FAO Fisheries Field Projects
FAO Representatives
FAO Regional Fishery Officers
Bilateral and multilateral development agencies and financial institutions


CONTENTS


PREFACE

PREPARATION OF THIS DOCUMENT

ACKNOWLEDGEMENTS

ACRONYMS AND ABBREVIATIONS

Part I: Introduction

Part II: Microfinance in fisheries and aquaculture: Guidelines and basic considerations

1 PURPOSE OF THE GUIDELINES
2 BACKGROUND AND PRINCIPLES OF MICROFINANCE
3 CONTEXTUALIZING MICROFINANCE

3.1 Country context
3.2 Local context
3.3 Sector context

4 LENDING MODELS AND METHODOLOGIES

4.1 Groups as a financial intermediary
4.2 Groups as guarantors of loans
4.3 Lending to individuals in solidarity groups

5 LENDING POLICY

5.1 Target group selection
5.2 Interest rates and loan pricing
5.3 Loan size and loan purpose
5.4 Loan term and repayment period

6 SAVINGS AND DEPOSIT SERVICES
7 PARTNER INSTITUTIONS

7.1 Financial institutions
7.2 Role of government
7.3 Role of donors

8 BIBLIOGRAPHY

Part III: Report of the Regional Workshop on Microfinance Programmes in Support of Responsible Aquaculture and Marine Capture Fisheries in Asia

1 BACKGROUND, PURPOSE AND PARTICIPATION
2 PROCEEDINGS

2.1 Opening ceremony
2.2 APRACA’s experience with microfinance programmes
2.3 The role and programmes of BAAC of Thailand
2.4 FAO’s strategies for fisheries and aquaculture development and the role of credit and investment support
2.5 Concepts and strategies in microfinance and their application to fisheries and aquaculture development
2.6 Country presentations and case studies on microfinance programmes in support of responsible aquaculture and marine capture fisheries in Asia

3 DISCUSSION AND ADOPTION OF WORKSHOP RECOMMENDATIONS

3.1 Working group outputs
3.2 Technical assistance needs and follow-up proposals

Annex 1: List of participants
Annex 2: Programme of FAO/BAAC Regional Workshop on Microfinance Programmes in Support of Responsible Aquaculture and Marine Capture Fisheries in Asia
Annex 3: Concepts and approaches of microfinance programmes and their application in fisheries development
Annex 4: Microfinance programmes in India

Part IV: Case studies

Microcredit and women in fishing communities in the Philippines

1 INTRODUCTION
2 PROJECT CONTEXT

2.1 Project background
2.2 Project objectives and strategy
2.3 Project components
2.4 Project organization/arrangements

3 PROJECT INPUTS/INTERVENTIONS AND ACCOMPLISHMENTS

3.1 Economic component

4 SOME LESSONS LEARNED: A SYNTHESIS

4.1 Microenterprises and credit as entry points
4.2 Linking women to financial institutions: a tale of two banks
4.3 Role of field workers and credit in group growth and development

5 CONCLUSIONS AND RECOMMENDATIONS
6 BIBLIOGRAPHY

Microcredit in support of women, poverty alleviation and upland aquaculture in Viet Nam

1 BACKGROUND AND OBJECTIVES
2 PROJECT EXECUTION
3 ORGANIZATIONAL ARRANGEMENTS OF THE MICROCREDIT SCHEME
4 PROJECT RESULTS, ACHIEVEMENTS AND IMPACT
5 MODEL OF MICROFINANCE PROGRAMME OF FINANCIAL INSTITUTIONS AND WOMEN’S UNIONS IN SUPPORT OF FRESHWATER AQUACULTURE

5.1 Memorandum of Understanding on the administration of a microcredit programme for freshwater aquaculture in ...
5.2 Regulations on the operation and administration of the aquaculture microcredit programme
5.3 Forms and records to be used in the aquaculture microcredit programme

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