Poverty remains an important issue in China despite its tremendous growth.  Hundreds of millions of people still live in rural areas and many are living on less than US $1 or $2/day.  The 1990 Institute believes it can assist in improving the livelihoods of many of these impoverished people by building successful Micro Finance Institutions (MFIs) in China   These MFIs will provide loans of between $150-600 and training to the poor, so that they can establish small businesses, expand their livelihood capabilities and be better able to care for their children and elderly.

MFIs in China have only achieved limited success to date due mainly to lack of good governance and on-site supervision, inadequate trained management and staff at the local level, and insufficient capital.  Consequently, even though MFIs are successfully lending money with high rates of repayment, few if any, are self-sustainable as revenues do not cover all costs.  (More in History of Micro Credit in China)

The 1990 Institute is partnering with International Plan (China) and the Women’s Federation to remedy these shortfalls. The Institute will provide additional capital and international business management.Plan China will provide local management and critical social services like health care, basic education, access to clean water, and environmental protection. The Women’s Federation will provide professional and social services to women and children. It is experienced in working with central, regional, and local government and social organizations.

The combination of providing sufficient capital, experienced international business management, the wide range of social services, and hands-on management with knowledge of local conditions, is what differentiates our micro finance program from others.