Village bank and credit unions of Lad Bualuang Patana

Due to poverty, debt and lacking investment funds, farmers in Village No. 6 Tambon Phraya Bunloe, Lad Bualuang, Ayudhaya province in 1975 together set up a savings cooperative with 38 members and initial funds of 1 140 baht (US$57 in 1975). In three years, they had 48 000 baht and 67 members. Problems in accounting and record keeping arose; villagers lost confidence in the cooperative. Only 12 members and 1 700 baht remained; the project failed. In 1990, facing the same problems and determined to rise above them, a new group was begun, with 24 members and 950 baht. It operated until 1993 with capital of 240 000 baht. Again, problems developed; the cooperative stopped. To solve their problems, the group sought expert help and made a study tour to a credit union. The group divided regarding the result: one section thought a credit union would help solve their problems while the other did not. A majority of the members, 208 villagers, resigned from the old group and formed a new credit union with capital of 14 000 baht. With the help of the credit union network, the group was strong; they named themselves "Village Bank and Credit Union of Lad Bualuang Patana". There are now 225 members and 81 affiliates, with capital of 3 196 224 baht (1997). They work on the principles of honesty, devotion, responsibility, sympathy and trust. Unlike Thailand's national economy, there are no "non-performing loans". Revenue comes from constant accumulated member shares, operating profit and paybacks and interests from loans. Because of their performance and keeping their principle intact, they are able to secure a large number of loans from the Government Savings Bank and the Credit Union Group. Now they can expand into community business as the chicken-and-egg group, the mixed farm group and a pilot project of the King's New Theory of Development. These are possible because of the devotion of one person, the president of the group operating committee. He is trustworthy, devoted and looks out for means to solve problems. He is determined to have training in what is needed, management skills, computer skills, and to seek help - when needed - from all sources, non-formal education, experts, credit union training center and even from his daughter, an open university student. He told everyone that the path he has taken is not easy and he is still striving to make it work. Nevertheless, he is determined to have a better life, not only for his family but also for other villagers.

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