EAST PANAMA’S ECONOMIC CHALLENGE
Community members typically lack access to financial resources locally. The majority of community members do not have bank accounts and there is only limited informal forms of credit available. For example, a person could obtain ‘credit’ at a local store by buying something now and paying later, simply adding it to their ‘tab,’ but there would be no formalized credit transaction. Larger financial institutions do not approve loans to community members without a fixed income, making it difficult for local microenterprises to grow and thrive. Most community members cite the distance to the nearest bank as the main discouragement to having a personal savings account. Even if individuals wish to travel the distance, not all community members can become members of these financial institutions. As examples, cooperatives require monthly membership fees, savings accounts often require a fixed income, and the cost of travel and the lack of land titles as an indigenous community provide additional barriers.
