John Hatch, founder of the non-profit Foundation for International Community Assistance, promotes village banking to encourage private enterprise in the Third World. What he foresees is a body blow to world poverty through bootstrap economics.
John has happened upon a novel idea . His idea was something called " village banking . " This system is a means of investment using small loans to poor women to finance their own private businesses , e.g. , selling food , crafts , etc . This banking allows them to create savings while paying interest and thereby qualifying for larger loans . The " village banking " system has grown to nine countries . Hatch says he created the system in order to channel money to the poor , primarily the mothers of children who would otherwise starve to death . The women have a loan repayment rate of nearly 100 percent .