Empowering Individuals in the Global Community Through Entrepreneurship
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AUSTIN, Texas (May 20, 2008) – On the sixth anniversary of independence for East Timor, two home grown Austin based organizations with a commitment to being active members of the global community are combining forces and resources to improve life in Asia’s poorest nation. Whole Planet Foundation, a Whole Foods Market non-profit dedicated to combating poverty in developing countries and the Silverton Foundation, a private family foundation, announced a collaboration that could direct up to $600,000 over three years in support of microlending projects in East Timor, funding being leveraged by an additional commitment of $400,000 from funds from the Netherlands based Triodos Bank.
Building on some of Austin’s unique individual connections to this remote island nation, the Whole Planet\Silverton collaboration adds Austin based philanthropy to the Whole Foods Market network of employees, customers and suppliers to create a powerful force for changing conditions that allow poverty to exist in developing countries. Why East Timor? An island nation located off the northern coast of Australia with a population of one million and an annual per capita income of $500, East Timor is one of the world’s poorest nations. It is also the first newly independent nation of the new millennium, and remains the beneficiary of international goodwill and attention in the hope it may become a successful model of international intervention and assistance in support of democratic self determination.
Whole Foods Market relies on East Timorese coffee growers, among other nations, to supply product to its international network of over 270 stores. The Silverton Foundation, with family roots in Australia, East Timor’s closest neighbor and ally, has been active in establishing relationships with and making grants to East Timorese agencies since East Timor became independent in 2002. In addition to Whole Planet and Silverton, the Austin community has some other unique connections to East Timor – a former University of Texas law professor became the first U.S. ambassador to East Timor in 2003; an executive assistant and advisor to East Timorese President Jose Ramos-Horta left her job at an Austin high tech company to take that position; and the Austin Community Foundation maintains a special project fund which directs contributions from Austinites in support of reconstruction and reconciliation in East Timor.
Why Microcredit?
Microfinance is a system pioneered by 2006 Nobel Peace Prize Laureate Dr. Muhammad Yunus and his organization Grameen Bank that provides economically disadvantaged individuals a chance to obtain loans as small as $150 to start or expand a home based businesses. These small businesses generate income, often expand to employ family members and neighbors, and help create a more stable economic path for impoverished families. The microfinance project funded by Whole Planet and Silverton will provide over 6,000 East Timorese, mostly women in rural areas, with a chance to create or expand small businesses.
Dr. Yunus, who is on Whole Planet Foundation’s Board, spoke to a local group of Austin philanthropists at a dinner in January about the impact of microfinance and his 37 year history pioneering this methodology. During the dinner he said, “We studied how bankers do things and then we purposely did the opposite.” For instance, microloans require no collateral, no legal instrument and are often provided to individuals who can’t read, providing disadvantaged people chances they would not have otherwise. Following the dinner, Silverton invited Whole Planet Foundation to partner with Moris Rasik (which means “independent life” in the Tetun language native to East Timor) – the largest, most effective and most innovative microfinance program in East Timor - based on Silverton’s long standing relationship with the organization. Moris Rasik enjoys a loan repayment rate of over 98%. As these loans are repaid, additional funds are available for re-use by other borrowers, or for larger additional loans to successful borrowers. This system creates self-sustaining employment opportunities and promotes wealth creation in developing countries that lack job opportunities, established markets or financial systems to support economic growth. The Whole Planet\Silverton collaboration will allow Moris Rasik to expand its reach to all rural areas of East Timor, ultimately ensuring they are able to help all those in East Timor who can benefit from this service.
“Microcredit works,” explains Philip Sansone, President and Executive Director of Whole Planet Foundation. “We have witnessed first hand that individuals are able to lift themselves out of poverty through microlending. We are excited to partner with Silverton Foundation and together have a larger impact.”
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