Butcher Receives Micro-Grant, Business Booms
FORWARD OPERATING BASE KALSU — Hussen Jowd, a butcher in Arab Jabour, is a success story of the micro-grants program being implemented by the 2nd Brigade Combat Team, 3rd Infantry Division, said Capt. Rems Keane, Company B, 426th Civil Affairs Battalion. Jowd’s success even garnered mention from President George W. Bush during a speech about battling terrorists, when he addressed a group of basic training graduates in November 2007.
The micro-grants program is designed to give the local economy a jumpstart, said Keane, a native of Weston, Fla.
Iraq’s economy follows the supply-chain distribution economic model. In this model, goods are produced from a natural resource and distributed to retailers who provide the goods to consumers. When consumers obtain the goods from retailers, money is introduced into the supply-chain distribution system.
This money is sent back up the chain, strengthening the links as it goes. This benefits the consumer by providing more goods and so the cycle continues, adding more jobs along the way. These jobs give consumers the money needed for consumption.
By introducing capital into this cycle of economics, Keane explained, the economy is stimulated. The stimulation leads to a stable economy, a strategic goal for the region.
The micro-grants are currently targeted at the retailer level of the supply-chain distribution economic model, Keane said. By giving businesses grants up to $2,500, he said, they can improve their businesses and expand their markets.
In order to receive a grant, business owners must first provide a plan of action for use of the grant and agree to three conditions.
The conditions are: business owners must use the money for their business and not personal gain; owners agree to attend business training and agree to attend local business association meetings.
While Coalition forces currently host the training and meetings, nongovernmental organizations with more business skills are integrating into the process, Keane said.
Although the government of Iraq does not fund the program, Keane said, the end goal is to transition to a micro-loan program, where the government provides businesses loans they eventually pay back.
Currently, businesses do not pay the capital back, although they do have to provide proof to Coalition forces, who visit them bi-monthly, that the money is being used for the right purposes.
The effect of money put to good use is evident in Jowd’s butcher shop.
Jowd has used his money for several purposes, Keane said. His grant has increased the size of his stock, provided new equipment for his business and is currently being used to construct a new building to fit the boom in production.
Jowd said before security improved in the region, he sold one or two sheep a week. Now, with newfound security and people moving about again, he sells the same amount daily.
Once the new building is complete, Jowd said he plans to expand his products by making soups to sell, as well as meat. He hopes to use further grants to build his own restaurant and purchase a delivery truck to expand his market to other communities.
Keane said while the grants were originally meant only for the retailer level of the economy, Jowd’s entrepreneurial spirit is filtering into other levels. His truck will increase the distribution link and as his business expands it will create more jobs for the area. Currently, Jowd is employing two men to construct the new building.
“I’ve got supplies and the people are getting money,” Jowd said.
While Jowd’s business is the poster child for success, the program has other successful ventures, Keane said.
To date the program has distributed more than $140,000 to local businesses in Arab Jabour, Hawr Rajab, Al Buaytha and Adwaniyah. While a price tag can be put on the grants, the dividends reaped from the initial investment are priceless.
“The money has made my shop beautiful,” Jowd said. “You’re (Americans who provided the grant) all my friends.”
By Sgt. Kevin Stabinsky
MNF-I
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