A microcredit project participant makes Alpaca sweaters.

Lucio Chino received his first loan from CARE in 1993. For 1,300 soles (about $370), he began his sweater-making business, called "Alpaca Finish," which now employs six people who make about 45 sweaters a day.

"I owe CARE so much," he says. "I made good use of my first loan and was able to pay everything back during the first winter I was in business. Now banks call me wanting to give me loans."

Chino is the first of five small-business owners the Youth Corps members will meet today. All of these entrepreneurs were able to start their businesses thanks to loans from CARE´s micro-credit program, which has now grown into a financial institution called EDYFICAR. The program currently boasts more than 14,000 loans with a 98 percent payback rate.

EDYFICAR´s general manager, Ana Maria Czegarra, tells the Youth Corps members that the program was created in 1998. Since 1985, CARE has extended loans to small businesses in Peru. However, the humanitarian organization soon saw the need for an actual financial institution that could continue to help Peruvians even after CARE's project was completed. So, while it established EDYICAR and currently owns nearly all shares in the financial institution, CARE hopes to attract other shareholders who focus their work in developing countries, according to Czegarra.

Carina and Lisa watching woman craft candlesticks as part of a wood and glass microcredit project.

Like Chino, many of EDYFICAR's clients borrow very little initially and usually have no collateral. The interest rate on all loans is currently 4 percent, which Czegarra hopes will be lower in the future.

EDYFICAR is designed specifically for Peruvians with the least amount of resources and stresses the involvement of women in the business, since women typically have less employment opportunity than men. With rampant unemployment in Peru, and scarce jobs, most EDYFICAR loan recipients would never have been able to start a business -- and therefore would not have a job.

The Youth Corps members marvel at Chino's beautifully handcrafted alpaca sweaters as they listen to his story about working with CARE in a tiny warehouse located below the small factory.

"I really love how soft these sweaters are," Polina says, who notes she'd be willing to adopt one of the llama-like animals just to feel its lustrous wool.

Before leaving Chino's warehouse, the Youth Corps members eagerly buy as many of the fine sweaters as they can carry. At 28 soles per sweater, or about $8, this is a true bargain and a wonderful way to support someone whom CARE has touched.

Carlos, Ruth, Jessica and Carina visit a microcredit project that sells baby clothing.

"I think this is even better than the Indian Market because I can tell people I bought it at a micro-credit project, and they will really appreciate it," Elisa comments.

While driving in a rented bus to see the next business started with CARE loans, the Corps members stare out the window at the dismal conditions. All of the businesses they will visit today are located in the northeastern section of Lima, which is very poor and incredibly grimy. In this part of the city, the pollution in the air is almost palpable, and all of the buildings are covered in a deep, dark layer of soot.

For six to eight months out of the year, the people of Lima do not see the sun. The gray skies only compound the feeling of despair that hangs over this area of town.

"At least the poor people in the country have beautiful surroundings and are able to live off of the land," Jeremy observes. "In the country, everyone works together to help each other out. Here, a job earned is a job lost (by someone else), so everyone has to fight their neighbor for a job."

According to CARE's Jessica Chipoco, the Youth Corps' guide and official translator, many of Lima's urban poor came to the city in the 1980's, when terrorism was rampant and inflation was staggering.

"They came here with the hope of improving their lives, but sometimes what they found here was much worse than what they left," she explains.

Happily, that's not the case for Marco Luzalde. Twelve years ago, he started his business with a loan of 200 soles (about $57) from CARE. Now 21 people work for him at "Artesania Luzalde," creating intricate, hand-carved mirrors, frames and candlestick holders. Because of the help he received from CARE, Luzalde now exports his wares to the United States, Europe and Latin America.

"I think it is so impressive that he sells his merchandise all over the world," Polina remarks. "He told me that he actually does all of the drawings for the designs himself, and then the workers trace them on the object. When you see a tag that says something is made by hand, you don't really think about who made it."

After a stop at a woodworking business, a baby clothes manufacturer and a silver shop, the Youth Corps members return to the CARE office. Here they will meet with the CARE staff members who will host them in their homes for the next three days. With the exception of Alexis and Nichole, who will stay at the home of CARE Peru's country director, Beat Rohr, each member will stay at a different home and have the opportunity to experience life in a Peruvian family.

Continue to Day 9