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Micro-finance occupation Plans in the Market.

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Appropriate Microfinance & Financial Linkages
All development is achieved from the investment of the resources owned by those seeking to whatever development perspectives. When desirous investors have only time and their human resourcefulness but no money to invest, then their desire to invest, and hence road out of their state of poverty, is seriously frustrated. Unless a system of investment by such people is achieved out of the common paradigms, then poverty will forever remain an ally of human kind. This is indeed the main challenge, that even with so much advancement in human institutions and knowledge, the only major predicament the 21st century faces is the rate of growth of poverty. Developing countries see their people getting into more poverty at a very disturbing rate, which then affects the economic performance at all levels. Such countries are keen to evolve appropriate approaches to end their people out of the predicament that poverty is. Any solution of enabling such economies achieve growth would indeed be heralded a breakthrough by al. Indeed, the United Nations has been keen to see the end of poverty, which to a large extent is desire to reach a mirage. The reality that money has to be used to eliminate poverty even when it does not exist as the initial seed is what makes microfinance such a daunting task for researchers.

Much of the efforts in bridging the poverty levels have been to help banks focus on the poor. So much research and to an extent hype has been placed on mainstreaming microfinance to the formal financial systems. Our experience at WillPower has been to evolve a model (represented here) from which interventions can be made using the commonly available microfinance institutions - the MFI and the Cooperative. Our choice institution has always been and will always be the cooperative due to its potential to create wealth outside the otherwise usurious system adopted in other forms of microfinance.

The moral of this model is that the intervention can only succeed if those keen in creating wealth are in organized forms of producer or business groups to which service providers of desirable interventions can engage with financial services delivery. This model is created with the obvious understanding that banks operate within some legal framework that traditionally prevents them from engaging in lending to people or institutions that have high levels of risk and since many of the banks are profit driven, the social nature that microfinance expects will find a very poor partner in banks. We are part of the community that has been changing this scenario, which makes us present here our thinking on what can shape a tiered entry of banks into the microfinance system.

It is important to indicate here that the implementation of this model assumes a high level of technology implementation so that even though it can be achieved with manual process implementation, the best results are achieved when process automation has been factored into the model.

Last Updated on Monday, 13 July 2009 06:36  

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Willpower March activities that has Done:

  • Melia Project
  • Prosopis Project
  • Kangema self help Data.