Posts tagged with: microfinance

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…)

Blog author: jcarter
Tuesday, May 22, 2012
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Nowhere in his article for The Atlantic does Joshua Foust use the “s” word.  But it’s obvious from the examples he mentions that the key to providing aid to Pakistan is applying the principle of subsidiarity:

. . . the most interesting project RSPN has done in rural Pakistan is a collaborative micro-healthcare insurance system. For very little money — $3.50 a year in some cases — poor people can get access to basic medical care (especially maternity care) and assistance if they face hospitalization.

A hyper-local focus on poor, isolated communities has created an unexpected way to provide previously unfathomable sorts of services to the poor at very low cost. The RSPN affiliates who provide microinsurance reach almost a million people, and at very little cost, by employing local community members for expertise, services, and administration.

This structure applies to much of what RSPN does: local projects, run by locals. It is a sharp contrast to even the ostensibly locally focused aid projects administered by U.S. and European NGOs and aid agencies, which focus on establishing a strong presence in capital cities and rely on expensive expatriate administrators. RSPN’s local focus carries significant spillover effects in its communities as well: providing opportunities and improving the quality of life makes those communities significantly better off as a consequence. The “brain drain” of young people leaving to find opportunity elsewhere is diminished, and with better health and finances they can develop themselves, without the distorting effect of foreign money.

Read more . . .

Returning from a conference earlier this week, I had the chance to speak with Garreth Bloor, a student at the University of Cape Town in South Africa, about his engagement with politics, the role of religion and civil society, and “Mama Africa’s” story of microfinance success.


In the interview Garreth recommends “The Call of the Entrepreneur” and Lessons from the Poor.

Blog author: kschmiesing
Thursday, August 7, 2008
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From time to time, we’ve drawn attention to and discussed the merits of microfinance.

A recent series of posts on the subject by Christian missionary, Mark Russell, reflects on the relationship between mission and microfinance. It’s a nice articulation of the rationale behind Christian support for such programs, focusing in particular on the economic and cultural environment of central Africa (the Congo).