The news about collateral-free small agricultural loans for small farmers in Benguet that were fully paid should be studied by other government agencies and LGUs on how to implement assistance for the benefit of their constituencies or clientele. For the history of government projects of this sort was always a failure. Either the money never reached their intended beneficiaries or the recipients took the money and treated it as a dole out. The attitude was, since the money came from the government, it was not necessary to exert one’s utmost for it to be repaid.
With this new successful project, of particular concern are the mechanism on the selection of recipients. What were the conduits used in the allocation of the loans? How were the use of the money loaned out monitored so it would not be diverted for other purposes? And how were the recipients assisted so they could pay back their loans?
From the news it appeared that the recipients were properly selected through their cooperatives or associations which were utilized as the conduits for the loans. Those who received loans really needed the money for their farming activities. They were also closely monitored so they won’t use the money for other purposes such as buying television or gadgets which they must have been salivating over.
The farmers also appeared to have been assisted in the marketing of their produce. Insurance policies covering their crops were also availed of so they and the “lender” (the government) would not be left holding an empty bag in case of “force majeure” or calamities.
In short, no effort was spared to make sure the farmers made use of the money properly and for them to be able to repay their loans. Such attitude is not typical of government agencies or entities or officers. It is high time it was made one, that it should be the typical attitude when giving out money intended to make the people help themselves.
As in the private sector, a person will not invest his hard earned money and be lackadaisical about its being recouped with some profit or not. Chances are he will exert every effort to get back his money and if possible with a healthy return on his investment.
Let us cultivate or impose this attitude on government.**