Achieving Family Farmers' Demands for Microcredit Through Credit Unions: A Framework for Discussion

Abstract

Este artigo pode ser copiado, distribuído, exibido, transmitido ou adaptado desde que citados, de forma clara e explícita, o nome da revista, a edição, o ano e as páginas nas quais o artigo foi publicado originalmente, mas sem sugerir que a RAM endosse a reutilização do artigo. Esse termo de licenciamento deve ser explicitado para os casos de reutilização ou distribuição para terceiros. Não é permitido o uso para fins comerciais.TANIA PEREIRA CHRISTOPOULOS This study aims to analyze a model of credit union, which allows meeting demands of microcredit of family farmers in a responsible way, identifying the real needs of clients and promoting financial access. Originality/value: In recent years, the microfinance community has witnessed unwanted consequences of microcredit misuse. We present an original approach about the way credit unions may achieve their target in a responsible way, offering appropriate products, services and training to the entire community involved. Design/methodology/approach: Through secondary data and interviews with decision makers and credit union members, we studied the case of Cresol Baser, a large credit union in Brazil. We analyzed data based on inductive theorizing. First and second-order themes were identified, resulting in a procedural model, representing relationships between responsible microfinance factors. Findings: The three main dimensions in the model of inclusive microfinance -conditions, proximity, and access -were integrated in order to promote a dynamic that respects the assumption of a responsible financial inclusion with regards to design, offer and access of products and services related to microfinance.Evaluation system: double blind review. Universidade Presbiteriana Mackenzie (UPM). Silvio Popadiuk (Editor-in-chief), Silvio Popadiuk (Associate Editor), p. 116-143. Achieving family farmers' demands for microcredit through credit unions: a framework for

Cooperativism and Microcredit: an analysis of the participation of cooperatives in the supply of microcredit in Brazil

“…Credit cooperativism arises from experiences of financial assistance to the poor, according to Burigo (2006), like revolving funds, and begins in Europe during the eighteenth century. In Brazil, the first cooperative appeared in Ouro Preto, Minas Gerais, in 1889 and in 1902, in Rio Grande do Sul, the Swiss priest Theodor Amstadt, created the first credit cooperative called Nova Petrópolis Rural Cashier, inspired by the German experience (Pinheiro, 2008;Christopoulos & Gonzalez, 2017). The German "model" of credit cooperative was created by Raiffeisen in the mid-nineteenth century, and became known as the "people's bank", based on loans characterized by: (i) residence of policyholders in small rural communities; (ii) assurance by members and co-responsibility by peers (Bastelaer, 2000).…”

“…Microcredit emerges concomitantly with credit unions in the 19th century (Christopoulos & Gonzalez, 2017), although contemporary microfinance and microcredit experiences emerged in the mid-1970s from parallel movements in Latin America and Asia (Aghion & Morduch, 2005). Group lending, considered the main characteristic of microcredit, is attributed to the credit cooperatives created by Raiffeisen in Germany (Bastelaer, 2000).…”

“…This study is justified to the extent that, despite the representativeness of the credit cooperative segment in terms of number of institutions, in addition to its relevance ratified by the literature (Barreto, 2016;Burigo, 2006;Christopoulos & Gonzalez, 2017;Pinheiro, 2008;Pinho, 2004) and empirical studies (Confebras, 2020;FIPE/Sicredi, 2019;Sebrae/FGV, 2020) in relation to the provision of microcredit, is less relevant to other types of financial institutions (Santos, 2016;Santos et. al., 2019).…”

Longitudinal Study of Credit Union Research: From Credit‐Provision to Cooperative Principles, the Urban Economy and Gender Issues

“…ey always have to be implemented under strict ethical-moral conditions, given the solidarity nature of these institutions [72], which makes them regulated by specific legislation [58,63,73], completely different from conventional banking. From the empirical point of view, there are multiple works focused on the rural environment [5,7,61,74], on the credit needs of agrarian communities [57,59,75], and microfinance [5,7,15,17,57,59,60], as one of the few viable alternatives to eradicate poverty in the poorest nations [76,77] and the most disadvantaged local communities of developed countries [78,79]. In this sense, Yunus [80] undoubtedly played an essential role in conceptualizing financial credit as an inalienable right of all human beings [81].…”

“…For these reasons, financial institutions linked to cooperativism went from being residual associations of just a handful of members to substantially increasing their business volume [11], being able to generate synergies among their members, as well as economies of scale from the capital provided by small savers [12]. ese elements have led to a growing demand for the services offered by credit unions [13][14][15], consolidating a series of practices that, by definition, entail considerably less risk than those of conventional banking [16].…”