A Catholic and Communist Work to Overcome Two Countries' Major Difficulties

Vietnam and Brazil are not just accepting the status quo. With different approaches, two individuals are tackling problems and working to improve the lot of their citizens.

     Using initial capital provided by an organization based in the Netherlands, Sister Mary Nguyen Thi Phuc, a member of Vietnam's religious order, the Secular Institute of the Sacred Heart of Jesus, designed a credit and savings program for women infected with HIV/AIDS. Using a $223 loan, a woman can start a small business, e.g. by buying a motorbike to transport paying customers or by opening a stand to sell soft drinks, coffee, or fruit, that can generate enough money to provide for herself and pay student fees for her children.

     Borrowers are given 10 months to repay their loans with interest to a banking account. Interest is used to assist others who have accidents, illnesses, or lack funds to pay for a funeral. The microloan program has the added benefit of inspiring other women to overcome their difficulties.

     In Brazil, the State of Maranhao on the Atlantic Ocean in the northeastern part of the country has both dense Amazonian forests and a vast desert-like expanse of white sand dunes. Its newly elected governor, Flavio Dino, although a member of the Communist Party, is a pro-free market proponent who recognizes the private sector generates wealth. He united members of opposition parties and governs with a vice governor from a pro-business party. His first order of business was to cut palace expenses by eliminating or reducing the budget for champagne, caviar, lobsters, and the security staff.

     Although Brazil is in the midst of its worst recession since the 1930s, Maranhao, the country's second poorest state, is determined to rise above Brazil's corruption (See the earlier post, "Warning to Students: Don't Cheat."), declining commodity exports (See the earlier post, "Falling Commodity Prices Spur Diversification in Emerging Markets."), and political turmoil. This toxic combination is threatening to cause Brazil's overall economy to decline 3% this year.