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 Hatch, founder of the non-profit Foundation for International Community Assistance that promotes village banking to encourage enterprise in the Third World, developed a concept of using small revolving loans to poor women to finance their private enterprise, allowing them to create savings while paying interest and qualifying for bigger loans. The series of loans, starting at $50, is renewable over three years to a ceiling of $300, allowing recipients to reach a level at which they can qualify for commercial credit. What Hatch envisioned five years ago has translated into 400 village banks in nine countries. Portfolios total $1.6 million, with a 96 percent repayment rate.