Posts tagged with: microfinance

Blog author: jcarter
Tuesday, December 8, 2015
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microloans240wIf you give a man a fish you feed him for a day, but if teach a man to fish, you feed him for a lifetime. But what if a man knows how to fish but can’t afford a fishing pole? Or what if he knows how to sew but can’t afford a sewing machine? Can farm, but lacks a plow?

The recognition that some people have skills to make themselves self-sufficient but lack capital to buy the tools they need to support themselves was one of the motivations for the microlending movement.

In the early 1980s Muhammad Yunus, a Bangladeshi economist and social entrepreneur, began a project in which he used his own money to deliver small loans at low-interest rates to the rural poor. He later founded Grameen Bank to extend microlending to other communities in Bangladesh. In 2006 Yunus and Grameen Bank won the Nobel Peace Prize “for their efforts to create economic and social development from below.”

For free market advocates like me, this sounded like an ideal poverty-fighting initiative. Indeed, for about ten years I’ve been a funder of Kiva, a non-profit microlending network. I’ve always liked the idea that I was able to play the role of a small-scale venture capitalist, funding entrepreneurs in developing countries.

But in my zeal to help I never bothered to ask, “Does it work? Does microlending really help people escape poverty?”
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Blog author: jsunde
Friday, November 7, 2014
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“What would happen if instead of focusing on what we don’t have, we consider what God has already given us — our talents, our dreams, our motivations — and offer them back to Him as an act of worship?”

In a new video from HOPE International, we’re challenged to counter our tendencies to approach God through an attitude of lack and self-doubt (“if only I had x I would do y”), trusting instead that God has already given us exactly what we need to obey, serve, and flourish.

After reviewing a series of Biblical examples, we’re reminded that God routinely sparks the most miraculous transformations by beginning with the basic resources at hand, from a boy’s loaves and fishes to David’s sling to a widow’s jar of oil. (more…)

As leaders of HOPE International, an organization that empowers men and women across the globe through business training, savings services, and small loans, Peter Greer and Chris Horst have witnessed the transformative impact entrepreneurship can have on individuals and communities, particularly when paired with the power of the Gospel.

In Entrepreneurship for Human Flourishing, a new book for AEI’s Values and Capitalism project, they explore this reality at length, offering compelling stories of businesspeople that illustrate the profound importance of free enterprise and entrepreneurship in equipping the poor and empowering the marginalized.

Watch the trailer for the book here:

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Katie Nienow worked in youth ministry for four years. After deciding to transition into the world of business, her former boss was not pleased. “You’re leaving the one thing God has best designed you to do,” he said.

Throughout her time in ministry, Nienow says that her interest in business and economics felt “ancillary to the call.” In a new video from Nathan Clarke and This Is Our City, she explains how that perspective was fundamentally transformed.

As Nienow explains:

God really awakened me to understanding that the gospel going forth in the world was a much broader restoration of communities, of cities, of economic systems, and that perhaps, just perhaps, God had gifted me because he wanted me to participate in that in a broader sense. (more…)

HOPE_logo_vert_color-251x300In an interview with Forbes‘ Jerry Bower, Peter Greer, president and CEO of the the Hope International, explains why church foreign aid programs often hurts those its meant to help:

Greer: There’s an entrepreneur named Jeff Rutt, and after the fall of the Soviet Union he had a desire to go over with his church and help. So, initially they did what people so often do, which is see that people don’t have food and then send over food, and see that people don’t have adequate clothes for the harsh Ukrainian winter and then go in their closets and send things over. And all of that is good, all of that is appropriate, all of that is needed in response to a crisis. But as Jeff did that, after a couple of years it was the team in Ukraine that eventually said—“

Bower: “Your help is hurting.”

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When we consider poverty alleviation, what areas should be focused on to yield effective and sustainable results? In the blog article, “The fruits, the roots, and the soil,” PovertyCure’s Mark Weber asserts that it is oftentimes the neglected aspects that are most necessary for long-term prosperity. We can often be lured by attractive, short-term assistance approaches, rather than recognizing and building the strong foundations that allow individuals and communities to thrive. We need to focus on the soil.

He says,

We poverty junkies spend a lot of time examining the fruits and the roots. But what of the soil? Humanitarians generally focus on the former, i.e. physical needs such as food, water, clothes, and medicine. Development types generally focus on the latter, i.e. infrastructure, agriculture, education, and various government or multilateral programs. Send out an agronomist to analyze a section of land for agricultural fertility, and his primary focus will be on the nature and fertility of the soil. We can have all the fancy technology in the world, we can genetically engineer seeds for pesticide resistance and higher yields, we can till the land with the powerful machines, but if the soil is sterile, nothing will grow.

Microfinance pioneer Muhammad Yunus touches on the soil issue in his poignant metaphor of the bonsai tree:

View the entire article on the PovertyCure Blog.

Connecting CommunitiesA recent report by the United Nations states that out of the world’s seven billion people, six billion have a mobile phone, but only 4.5 billion have a modern toilet. In India, there are almost 900 million cell phone users, but nearly 70 percent of the population doesn’t have access to “proper sanitation.” Jan Eliasson, the UN Deputy Secretary General has called this a “‘silent disaster’ that reflects the extreme poverty and huge inequalities in world today.”

Despite the lack of sanitation, most people are able to afford a mobile phone with a wide range available for [$15] or less and the price of calls reducing from [15c] a minute to [3c] a minute in the last decade.

This report focuses on the negative: the lack of sanitation for those in abject poverty, but it fails to note the extraordinary fact that people living in poverty have access to a device that was, until recently, a luxury item for wealthy Americans. Tim Worstall, a contributor on Forbes.com, addresses this report in a recent article:

It’s possible to be a little cynical about this phones versus thrones number though. Actual flush toilets aren’t in fact the problem. What is the provision of water to flush them and a sewage system to flush them into. Both of which are largely government provided. While mobile phone systems are largely private company provided. Whether you want to call it the lust for profit or the greater efficiency of the private sector, it won’t surprise the more right leaning of us that phones do have a greater market reach than toilets.

Andreas Widmer, president of The Carpenter’s Fund in Switzerland, has spoken a great deal about small businesses, aid, and investing in Africa. In an interview with PovertyCure, he explains causes of poverty: (more…)