Solidarity microfinance, an alternative for improving Development with People in Poverty: Case Study Medellín

Abstract

Introduction: The solidarity circles are made up of groups of 10 to 30 people from disadvantaged strata of the city of Medellín, Colombia, excluded from the traditional financial system, who cooperate for the development of economic and productive activities. This article shows the results of the research, “Impact of the Public Policy of the Bank of the opportunities of the Municipality of Medellín in the credit lines Círculos Solidarios and Bancuadra of the Corporación Fomentamos”; Its objective is: to describe the benefits of social impact, associated with microfinance, within the framework of the application of said Public Policy, from the perspective of human and social development. Materials and methods: 9794 beneficiaries of the policy, 8123 of the solidarity circles credit line and 1671 of the Bancuadra credit line were taken as the target population, by simple random sampling with 133 beneficiaries. Results: The results ratify solidarity microfinance as an alternative for improving the human and social development of people living in poverty, which could be made visible in aspects such as: The improvement or acquisition of housing, savings, credit, better living conditions, comprehensive training, relevant inclusion from the gender perspective, generation of links, relationships and bonds of trust between the beneficiaries and members of the solidarity circles. Conclusions: In general terms, the solidarity circle becomes valid when solutions to family and social problems are generated, when basic, essential, and urgent needs are solved, when the community is prevented from resorting to illegal loans.