How To Arrange A Micro-Credit Process

This paper discusses the need for extending micro-credit to people living in national parks and bio-sphere reserves in various parts of Russia. It provides a detailed guide for the same and suggests that the program be funded by international donors, big enterprises, other sponsors or through own funds.As per the paper, making micro-credit available would promote:

• Raising rural livelihoods and employment;
• Sustainable development of rural areas;
• A productive collaboration of commercial, non-commercial and governmental organizations;
• Multiple use of limited financial resources;
• Nature conservation.

The paper provides the following step-by-step guide for the implementation of the micro-credit mechanism:

• Identification of a creative team to take care of all operations;
• Socio-economic analysis;
• Presentation of the project to prospective partners and project implementers;
• Selection of the leading organization, preferably the district authority;
• Identification of the area for the first implementation phase;
• Resource assignment for credit;
• Approval of program rules and procedures;
• Contest announcement and public presentation of the program;
• Training of co-coordinators and technical executors;
• The first micro-credit round - It is important to appropriately select the first debtors, because their successful handling of the projects inspires more people to follow;
• Completion of the project and transition towards sustainable functioning - It is necessary to increase funds by increasing interest rates and additional sponsorship.

The paper concludes by listing some problems that might occur and their solutions, and provides samples of different aspects of such a mechanism.