Solidary Revolving Fund in the Wilderness of Bahia

Finalist 2013

Agência Regional de Comercialização do Sertão da Bahia - Arco Sertão Bahia
BR 116, s/n, Sítio Alagoinhas - CEP 48700-000 - Serrinha - BA - Zona Rural
(75) 3062-9225
Responsible for technology
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Gisleide do Carmo Oliveira Carneiro(75)
Technology Summary

The Solidary Revolving Fund (FRS in Portuguese) is an alternative to strengthen the economic activities of family farmers, organized in Solidary Economic Ventures (EES) to help income generation. The FRS is managed by Arco Sertao Bahia and the affiliated EES.

Main Theme


Problem Solved

The great majority of Solidary Economic Ventures (EES) have been created more than ten years ago to facilitate access to credit. Farmers lacked solvency and faced restrictions in some cases, because they did not present the conditions requested by agencies stimulating rural credit. They were forced to use commercial credits to develop their activities, for lack of working capital. This reduced their possibilities, because a significant part of their earnings was directed to the payment of the high interest rates charged by the companies where they acquired products. On the other hand, when they did not use any credit mechanism, they could not face the demand of their clients and in some cases the inputs were scheduled for delivery when they had no means to pay. In view of this difficulty, Arco Sertao Bahia created the Solidary Revolving Fund, which reduces the problems faced by family farmers affiliated to the EES.

Solution Adopted

During debates in the meetings sponsored by Arco Sertao Bahia, most small farmers revealed that they were afraid of accessing credit, either in official banks or in credit unions, because they felt unable to manage resources and to make sure they could pay the corresponding instalments. They also indicated as a limiting factor the fees charged to open accounts in official banks or the quotas needed to associate to credit unions.Through the exchange of experiences with other institutions in the territories of Sisal, Portal do Sertao and the Jacuipe Basin, who operate the Solidary Revolving Fund, Arco Sertao Bahia developed a proposition for the implementation of a new Solidary Revolving Fund (FRS) supported by the Bank of Northeastern Brazil and by the State Secretariat for Labor, Employment, Income and Sports (Setre) of Bahia. The principles used for the implementation of this Revolving Fund were: the Fund would be operated by a managing committee integrated by representatives of the Solidary Economic Ventures (EES) affiliated to Arco Sertao; the bylaws to operationalize the Revolving Fund would be jointly developed with the participants; access to the Fund would be allowed according to the guidelines contained in the bylaws of the Solidary Fund, drafted with the participation of the representatives of the Economic Ventures: in the bylaws it would be indicated how to access the Fund and how the resources would be returned, to finance other initiatives; the Solidary Revolving Fund would be monitored every two months by the Managing Committee, who will render an account every three months to the Solidary Economic Ventures (EES); to implement the Solidary Revolving Fund there would be discussions and meetings, technical follow-up visits and exchanges to provide a solid understanding of the principles and regulations of the Fund. In the operation of the Fund are the Solidary Economic Ventures affiliated to Arco Sertao Bahia, who manages the fund and the affiliated EES, by means of a commission who disseminates the initiatives to the participating EES and consolidates the propositions presented by them. The Managing Committee will meet twice every month, to share informations about the operation and access to the fund, before the board of Arco Sertao Bahia. Additionally, the presentation of accounts is done every three months to the Regional Group of Arco Sertao, composed by farmers representing the 30 Solidary Economic Ventures integrating the network. To regulate accession to resources and the operation of the Fund, internal bylaws were created, based on the experiences of farmers and the knowledge of similar experiences. Before accessing the Fund, an EES must prepare a small project, explaining the need for a loan and the feasibility of the corresponding economic activity. This is a successful experience that has been helping the participation of farmers in their access to the market and ensuring the improvement of income for their families.

Technology Attachments
Quadro dos EESBaixar
Regimento Interno do FRSBaixar
Formulário do ProjetoBaixar
Modelo de ReciboBaixar
Formulário de controle de contribuiçãoBaixar
Comunidade Quilombola - Acesso ao FRSBaixar
Carderno de ExperiênciaBaixar
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Last modified date: 9/16/16 11:53 AM