Microfinanzas in the Puerto Rican context
Microfinanzas Puerto Rico was set up in April 2008 in order to assist people to carry out productive activities and to make easier the access to financial services.
The foundation of a Microfinance Institution in Puerto Rico marks a milestone in the social and economic history of this country. For the first time, it exists an alternative to fight against the structural problems of poverty, vulnerability and unemployment that reduce its economic development and growth.
Puerto Rico’s economic problem is characterized by the profile of its population living in poverty – which is quite different from other Latin American countries. Firstly, Puerto Rico’s income distribution can be considered as quite fair due to the fact that Puerto Rican families receive social work if they don’t have enough incomes or they are unemployed, disabled or students.
Nevertheless, Puerto Rico is one of the countries with a highest unemployment rate in the area (14% recorded in December 2012) but the most surprising fact is its reduced labour participation rate, 39%. The reasons which explain this low number are: the said unemployment, the emigration when people are old enough to work, poor quality education, and the existence of social work that discourages people from seeking employment.
In order to face this situation, Microfinanzas PR affords the opportunity to fight against the problems in the labour market that specially affects women who are the head of their families, former convicts and unemployed people.
The Crop and livestock sector is showing a slow development, reason why the entity is trying to assist those farmers who have no access to baking services.
Osvaldo Hera