MICROCAPITAL STORY: Japan Gives USD 84,000 to Support Microcredit on the Thai-Burmese Border Through the Grassroots Human Security Projects Scheme

At the request of a local self-help group, the Japanese Government gave USD 84,000 through its embassy in Thailand for a microcredit initiative on the border of Thailand and Burma. The Government of Japan is extending THB 2.97 million (USD 84,000) to the Grassroots Human Security Projects scheme (GGP), a part of Japan’s Official Development Assistance (ODA) agency since 1989, under the “Micro Credit for Low Income Families on the Thai-Burmese Border” project. The Kyoji Komachi, the Ambassador of Japan to the Kingdom of Thailand, and Sakda Netek, Director of the Kwai River Christian Hospital Staff Self-Help Group, signed a contract on March 12, 2009 at the Embassy of Japan.

Due to Myanmar’s unstable political situation and aggravated economic conditions, Thailand has seen an increase the number of migrants along its border areas. This influx of migration is beginning to strain local resources.

One border area experiencing the great influx in non-Thai people is the Sangklaburi district of Kanchanaburi province. Currently, there are approximately 25,000 non-Thai people in Sangklaburi. This is about 60% of the district’s total population. Because non-citizen migrants must pay for medical services themselves but most cannot afford to do so, local hospitals are running at deficits with limited resources.

Consequently, in 2005, some staff of the Fuaimarai hospital of the Sangklaburi district created a microcredit scheme, the Kwai River Christian Hospital Staff Self-Help Group, which loans small amounts of money for people’s urgent daily needs. These daily needs can range from medical fees to housing expenses. The microcredit program has since performed well, and thus, more individuals would like to participate.

The Government of Japan has decided to provide a total of THB 2.97 million (USD 84,000) to this purpose. The assistance will be used towards so that low income hospital staff and other local residents are able to join the scheme. As the program’s lending expands, debt burdens will be reduced in real terms due to the application of low interest rates, and increased income from small business activity.

By: Andrea Chu

ADDITIONAL RESOURCES

Embassy of Japan in Thailand, March 18, 2009: “Press Release”

Kwai River Christian Hospital: “home“