World of Good, Inc.

RSF’s loan to World of Good ensures that artisans in Central America and other parts of the world have access to the U.S. Fair Trade market.

Last year, a devastating storm hit Mexico and Central America. Hurricane Stan displaced hundreds of thousands of people including artisans from a cooperative in Panajachel, Guatemala. The women, makers of jewelry, not only lost their homes but also alternative livelihood from the decline of the local economy brought on by the halt in tourism.

A large order from World of Good following the hurricane played an important role in providing a way for workers to gain stable employment and better living conditions. “World of Good’s order really helped these women provide for their families during this period of hardship…At the same time, World of Good’s orders have definitely played an important role in improving standards of living in our partner communities,” says Ruth DeGolia from Mercado Global. “For the first time, all of our partner artisans’ children of age to attend elementary school were enrolled this year.”

World of Good, a loan recipient of RSF, is a for-profit social enterprise headquartered in Berkeley, California. The company partners with national retailers like Whole Foods, Wild Oats, and Follett Campus Bookstores to bring, using Fair Trade practices, artisan handcrafts from around the world to the U.S. market.

Priya Haji, CEO and co-founder of World of Good, explains why RSF’s loan is important at this time: “The primary impediment for most artisan groups to participate in the U.S. consumer market is access to capital. Through the working capital loan from RSF, World of Good is able to ensure that access to capital is not a barrier to entry. As a standard fair trade principle, we pay artisans a 50% deposit upon placing an order so they can work on production with sufficient resources and benefit from economic development through trade. With the RSF loan, we are able to place larger orders and work with a greater number of groups.”

“RSF is pleased to begin its foray into social enterprise lending with World of Good,” says Esther Park, senior lending manager at RSF. “The world needs more companies that are creating positive social impact.”

For more information, please contact www.worldofgood.com.

Photo by Audrey Seagraves courtesy of World of Good, Inc.

Friday, June 30th, 2006