Tuesday, August 14, 2007
I am exhausted. Physically and emotionally. Transitioning from throwing bricks and laying mortar for two weeks to riding motorcycle taxis side-saddle in a busy, dusty city really takes a toll. I feel so tough… and so vulnerable.
I decided to stay this extra week to speak with microfinance institutions (MFIs) and as tired as I am at times, the extra stay is well worth it. With MFIs at all levels – small, large, start-up, scaled, non-profit, for-profit, Christian, and secular – MFIs stress the importance of building trust and knowledge among those seeking loans. Individuals or groups will take out loans as little as $20 to buy equipment or material to fund a small entrepreneurial idea or existing business. The MFIs conduct training courses that explore the necessary skills and structure it takes to financially succeed in the growing market. I spoke with loan officers at three MFIs; each explained the important role that discipline and trust play, especially in the group loan settings. The group will take turns in distributing loan money to the individuals’ businesses, but all will be held responsible for ensuring the loan’s repayment. So the group members keep a careful eye on one another’s practices and are, in turn, held accountable for their own business actions. All information is cross-referenced; a loan officer may ask a man how much he spends per week on food and then ask his wife how many times per week the family eats meat. !! Can you imagine applying for a small business loan at your bank in America and being asked about your weekly meat consumption? When it comes to microfinance in the village, meat matters. It’s incredible to hear about the woman with a son in indentured servanthood who takes out a loan, starts a business, grows the business, and can now not only have her son at home, but in school.
Of course, they are not all success stories and I’m definitely wary of MFI directors who come across as extremely money- and profit-oriented. The work and improvement that is being accomplished is pretty impressive, however. One thing that draws me to this form of economic development is that it provides challenging ground to balance my heart and my actions with the opportunity of development and profit. It’s also fascinating to see so many women take out loans, prove successful, and thus not only engender economic change, but social change. It will be interesting to track both the development of those seeking microfinance loans and the industry as a whole.
I feel as though I have learned and accomplished so much and there’s still so far to go. One brick, one step at a time, though. For now, I need a moment to rest. And to breathe.
Of course, they are not all success stories and I’m definitely wary of MFI directors who come across as extremely money- and profit-oriented. The work and improvement that is being accomplished is pretty impressive, however. One thing that draws me to this form of economic development is that it provides challenging ground to balance my heart and my actions with the opportunity of development and profit. It’s also fascinating to see so many women take out loans, prove successful, and thus not only engender economic change, but social change. It will be interesting to track both the development of those seeking microfinance loans and the industry as a whole.
I feel as though I have learned and accomplished so much and there’s still so far to go. One brick, one step at a time, though. For now, I need a moment to rest. And to breathe.
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