Creating Sustainable Microfinance: A Panel Discussion
by khaggans | July 16, 2009 at 8:48 AM
picture1.jpgAn interesting event happening at MercyCorps in NYC:
Creating Sustainable Microfinance: A Panel Discussion
Moderated by Caitlin Weaver, Chair of the Microfinance Club of New York
Panelists Include:
Camilla Nestor, Vice President of Microfinance, Grameen Foundation
Bill Abrams, President, Trickle Up
Beth Ellen Dunphe, Director of Development, Project Enterprise
While Mohammad Yunus was awarded the Nobel Peace Prize for his
pioneering microfinance work in Bangladesh just three years ago, the
popularity of providing the poor with collateral-free loans and other
financial services to support their businesses is at an all-time high.
New microfinance models seek to make lending even more direct. Yet as
the practice of microfinance has begun to mature and expand, so too
have concerns over how to implement it most effectively. What are the
implications when a nonprofit organization offers microfinance to an
impoverished community but does not provide basic health or social
services? Can a single microfinance model work on different
continents? How might nonprofits, lenders and governments ensure that
micro-loans lead to lasting change not just for the borrowers, but for
their entire families and communities?
These are among the questions to be addressed at this panel discussion
hosted by Mercy Corps'
Action Center to End World Hunger in Battery Park City.
Wednesday, August 5, 7:00PM
Mercy Corps’ Action Center to End World Hunger
6 River Terrace
Battery Park City, New York
Comments
Political will as a solution to sustainable .microfinance
Thank you for the enlightening words
Having a bit of knowledge on microfinance and how it can assist small holder farmers and small business persons in the Southern African region, I believe that this entirely depends on the political will from the government of the day in terms of supporting the establishment of fully functioning micro finance institutions,
However, some might see micro finance institutions as a threat to big banks, but they are the closest channels in which the low income communities can access finance for their livelihoods,.
Housing microfinance in Zimbabwe is yet to be realised ,partly because of the 9 year economic crisis that made it impossible to set any microfinance institutions. Secondly, the housing groups and co-operatives needed to have come together , form a critical mass and engage the policy makers in ensuring that housing microfinance institutions are established and serve the interests of the low income communities.
I guess at the end of the day, the success of any micro finance institution depends on the government policies, its ideology and whether it believes that the low income communities from both the urban and rural areas , should have access to microfinance.
Furthermore, an informed citizen and a critical mass is important in pushing the policy makers in putting mechanisms that will faciliate the sustainable livelihoods of the low income communities.
I guess given the current scenario where the world is trying to wake up from the economic recession that has negatively affected many people,especially the poor, the international financial institutions,donors and other well wishers should now come up with ways of supporting the establishment and sustainability of microfinance institutions, if poverty eradication is to be realised,especially in the Global South,
Tafadzwa(Chimwemwe)
Tafadzwa R.Muropa
Harare,Zimbabwe
Microfinance Institutions
Curious, why are we thinking in terms of "institutions"? Is it possible to approach microfinance from an implementation perspective within a community other than via institutionalized microfinance? Is it necessary to go through a local or regional government to implement microfinance? Is it possible that microfinance can be micro enough that it is between a few individuals, rather than on an institutional scale?
I don't know, because I have never had the opportunity yet to participate. I'm asking you because you have some experience. Does microfinance have to work on an institutional level?
Is it possible for say, you, Ms Muropa, to put me, Ms Hargrove, in touch with a woman in Zimbabwe who is ready and willing to participate in the same way that I am? She has a skill or has the time to tend to a sustainable agriculture or artistic endeavor that she could not do on her own without some assistance from me--someone who has a little extra cash and who has the heart and desire to help? She could in turn sell her wares or goods or foodstuff for a profit that she is herself happy with, that she herself sets based on her own assessment of her own skills, wares, products, produce, etc. She would keep the profit, and account for it. Maybe I'm not even looking to be paid back, but she can take her payment to me and turn it into something that would help someone she knows? Maybe all that is really needed is an online accounting tool, and some form of accountability between individuals that shows that the recipient of the aid has turned in good faith to return said payment to another individual seeking to participate...and in turn to do the same for her own female friends?
Does doing that require an institution? Or can that be a matter of choice between individuals? Could it be a list of women with money who want to help a list of women who want to have money, who work individually between each other. The real payback for all is that all women are made stronger: those who have, can help; those who don't have, can get stronger and have greater freedom and choice, and can start to be those who "have", too. Once women who are mothers are stronger, then the children are stronger too.
I think, if we only think in terms of institutions, we limit our abilities to help each other.
What do you think? I would so love to hear from you based on your experience, since I have absolutely none.
Ever kindly
Sabra Hargrove