Nike and Mercy Corps Address the Challenges of Globalization in Rural China

"We welcome the partnership with Nike to further our ongoing efforts in helping rural farmers in China." Photo: David Austin/Mercy Corps

Nike, Inc. today announced its first micro-enterprise initiative in China, expanding the company's six-year-old micro-enterprise program to four countries in Southeast Asia. Nike will provide US$275,000 over three years to help fund a joint micro-enterprise program run by the China Foundation for Poverty Alleviation (CFPA) and Mercy Corps serving rural communities in Fujian province.

Nike's donation will be used in Fuan County, situated in Fujian province, to provide credit for the poor in rural farming and fishing communities, who do not have access to credit through formal financial institutions. In addition, through its donation, Nike and its partners will offer vocational training and education to loan recipients. Programs will include purchasing and negotiation, project management and marketing classes. Thirteen contract factories employing approximately 30,000 workers manufacture apparel, footwear and equipment for Nike and its licensees in Fujian province.

"Nike is about sport, but we also recognize our responsibility as a global company to address our impact in the communities where we live, work and play," said Robert T. Speltz, Nike's Director of Global Community Affairs. "It is our intention to participate in the communities where we do business and to act as a catalyst to improve quality of life through job creation, employee involvement, contributions and partnerships."

Over the three-year period, the goal is for the initiative to evolve into an independent, self-sustaining micro-finance institution in the Fujian province. According to Mercy Corps and CFPA, it is expected the micro-lending institution will serve a client base of over 8,000 beneficiaries and aim to increase the average annual income of the target population of loan recipients by more than 85 percent by the end of the four years.

"Mercy Corps and CFPA have been working together in China for several years to build capacity and develop financial resources for our micro finance program," said Ells Culver, Senior Vice President of International Relations and Co-founder of Mercy Corps. "We welcome the partnership with Nike to further our ongoing efforts in helping rural farmers in China address limited access to economic opportunities through small business development, training and poverty alleviation programs."