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With more than 50-million-baht in its revolving fund, the Klong
Pia credit union shows how a community can support itself and provide for its different
needs. Former caretaker, Amporn Duangparn, is the fund manager and has been a driving
force behind its success.
Atiya
Achakulwisut
Around Jana district, in southern Songkhla province, Amporn Duangparn is known to be the hot shot credit fund manager - but don't expect to bump into him wearing a three piece suit or gold-rimmed spectacles.
Known locally as uncle Amporn, he
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| Amporn Duangparn...'I have always been keen in community service as far as I remember. I was a health care volunteer. Iam always available when there is charity work. That is why the villagers recognise me even though I am poor and lack social status.' -- Photo by Smith Sutibut |
With his formal education ending at Pathom 4, Mr Amporn does not even know how to use a simple calculator, but in spite of this he is managing a revolving fund worth more than 50 million baht.
"I have always been keen in community service as far as I remember. I was a health care volunteer. I built bridges for the village. I am always available when there is charity work. That is why the villagers recognise me even though I am poor and lack social status," the 55-year-old native of Klong Pia, in Songkhla said.
Behind him are more than a dozen plaques honouring him. There are also pictures of Mr Amporn receiving different awards from universities and national organisations, including the Khon Dee See Sang Khom award, an annual award which recognises people for outstanding public service.
The accolades look unusual in the room of a man born into a poor, rural family and who worked as a school caretaker for most of his adult life. But they are the result of Mr Amporn's role as the leader of a savings group in Klong Pia district.
The informal credit union, which currently has more than 4,000 members, has been hailed as a success story which shows how a community can raise funds and finance its own economy and livelihood.
Like most savings groups in the country, the Klong Pia credit union started in the 1980s as a government-initiated effort to promote savings among rural villagers. And like most of the groups, it initially failed.
"Government officers were not confident of the villagers' ability to return the money. They insisted the savings be deposited in a bank and not loaned out. As a result we only had a few members, about 50 people from 10 villages and a little over 2,000 baht savings in the first year.
"In the second year half of the members and committee resigned," said Mr Amporn, who has been a committee member since the start.
There was no point in starting a fund if members did not benefit from it, Mr Amporn said. The committee, therefore, took over the management of the fund and started lending out cash.
Money loaned generated more money. With one baht interest per month, the fund began to grow. The yearly dividend was raised from two percent to 4.5 percent, on a par with the bank's interest at that time.
Membership of the group increased from 20 to 63, with more people enthusiastically knocking at the door.
Apart from its financial success, the Klong Pia credit union is distinguished from other groups by its welfare allowances. It is not the amount of money the group can reel in, but the well-being of its members that is the group's primary concern.
Welfare benefits came onto the Klong Pia credit union's agenda during it's second year, following the death of one of its members.
"The whole family of that member died in an accident. The committee agreed the group would give some money to the relatives as a way of offering the union's condolences. It was only 500 baht, but the gesture really made an impact on people. We had more people applying for membership after that," Mr Amporn said.
The group, therefore, decided it would allocate some money for its members for when they passed away.
To establish the funeral fund, Mr Amporn ruled the credit union would match the bank's rates of interest for cash invested in the union for 12 months or more. Money banked with the union for less than 12 months would receive a lower rate.
The difference between the two rates of interest was profit for the union and put into the special welfare fund.
Mr Amporn was more ambitious in wanting to provide more than merely gesture money to express funeral condolences. He wanted the group to be able to provide a full-cycle of welfare benefits for its members, from the cradle to the grave.
Although it is only four years since the welfare fund became large enough to help with medical expenses, the amount to be reimbursed on medical bills has increased from 30 percent to 70 percent.
"I am confident in the year 2001, three years from now, we will be able to give a 100 percent reimbursement to our members," Mr Amporn declared.
There is also a fund for accidents and natural disasters.
"A while ago, a villager lost his house in a fire. He was not our member. But we gave him 2,500 baht from the disaster fund anyway. We also donated 12,000 baht to storm and flood victims in Kratoon, Chumphon province, even though we don't know anybody there," Mr Amporn said.
The Klong Pia credit union also gives 15 scholarships a year, of 500 baht a piece, to Wat Chong Khao school where Mr Amporn used to work. In the future, Mr Amporn plans to offer more education sponsorships.
"We plan to select up to five students a year and finance their education, as far as they can go. We would like to show our Klong Pia credit union can give education to people who might one day become a district chief, governor or prime minister," Mr Amporn said.
The union also sets aside 60,000 baht to support occupational training for people in the community.
"Last month, housewives in our group went to study how to make fish sauce and baking. Four or five of them are making doughnuts for sale right now. We also coordinate with the provincial public service agency. They send people to learn how to make dresses," Mr Amporn said.
And he does not want to stop there. His visions for the future are extensive. When there is more profit to spare Mr Amporn is determined to establish other funds to ensure the well-being of people in the union - a catastrophe fund, to be used in a time of crisis, is one of the areas he is looking at.
"If our members die, for example, we should be able to reduce or cancel any debt they have with the group. We would draw money from the catastrophe fund to cover the balance," Mr Amporn said.
The managing committee of Klong Pia credit union consists of about 40 people, elected by members. They receive an equal share from five percent of the yearly profit. Once elected, the committee members can stay until they retire.
"We elect new members onto the committee every year. Some academics told me the committee should stay for a term of two or four years. The term system lets members choose a new committee person if the old member does not work out.
"But I think continuity and experience is more important for the job. As for the possibility of erratic behaviour or embezzlement, our account is always open to the public. Everyone knows each other and keeps a close watch anyway.
"Besides," Mr Amporn added, "if a committee member came in for two months and cheated us, we would have to wait for two or four years to elect him or her out under the term system, wouldn't we?"
Strong leadership often gives rise to a personality cult. A strong-willed and competent leader, Mr Amporn is well aware the success and future standing of the Klong Pia credit union very much hinges on himself.
"I have been trying to groom a new generation of managers because I don't want people to look only to me. I tried to step down several times but the members would not let me."
Mr Amporn asked the members to consider electing a new chairman, pointing out that if he were to die suddenly, the question of how to manage the fund would be more difficult to address. But the members answered in unison they would rather wait until Mr Amporn dies and then see what they can do.
Last month, Mr Amporn resigned from his caretaking job after 18 years service. In 2001, when the credit union can reimburse people 100 percent of their medical expenses, he plans to step down as chairman.
"If I knew I was going to die tomorrow," Mr Amporn said, "I would buy a cassette tape today and start recording how to manage the credit union. It would be my gift, giving me comfort that the Klong Pia credit union would not easily collapse."