Five Great Things About Microfinance

1) It builds wealth in the poorest countries. Some problems are problems of wealth distribution. But in many developing nations, the problem is a lack of wealth, period.Looking around Kiva’s website, I see many nations where the average yearly salary is less than my monthly take-home pay … and I work in education, not medicine or law.

Microfinance can help both situations, because it helps people create and expand small businesses and farms. This means more genuine goods and services delivered where they are needed most.

And nations with strong middle classes are much more resistant to manipulation and exploitation by large corporations and corrupt government officials. These loans don’t help Exxon or Goldman-Sachs. They help families.

2) It helps women especially. In many male-dominated societies, microfinance is one of, if not the, only way for women to get the capital to start businesses. And having their own businesses, and their own money, helps put women on an even footing with men. This can have a powerful equalizing effect on society.

3) It helps children, too. Families with small businesses can often afford to send their kids to school, rather than keeping them out to work. Many of the loan requests I’ve read on Kiva mention that very thing. The more kids stay in school, the fewer end up as child brides, child soldiers, child prostitutes, or, more commonly, unskilled laborers living lives of poverty.

4) It’s the gift that keeps on giving. Because you’re making a tiny loan, and not giving a donation, the entrepreneur will repay it in time. Then you’ll be able to take that same money and lend it out to someone else. You can keep the same money in circulation or you can add more each month, creating a snowball effect.

5) It’s cheap. The cost of entry is only $25 on Kiva, the world’s leading microfinance operation. And once it’s repaid, you have the option of taking your money back. So you’ve got very little to lose. Why not head over to Kiva (or to WorldVision’s microfinance department) and check it out?

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A Clarification About College

College Graduate Knit Doll by Carey Bass

Image by Carey Bass, Creative Commons

Something I posted in my last post on modesty may have come off as derogatory to those without college educations: “Soon they’re protecting [women] from going to college and learning difficult, even un-godly things.”  I don’t mean for it to be read as putting down those without academic degrees.  I have nothing but respect for people who have gone directly to work and have made a good life for themselves and their families (and I won’t be so arrogant as to judge from outside what a “good life” necessarily looks like).

I know that college isn’t for everyone. Right now, borrowing money to go to an expensive four-year university is a poor return on investment for almost everybody.  Tuition is up, scholarships are down (the one that carried me through my undergraduate education no longer exists), and jobs are scarce, even for college graduates.

The echoing propaganda that everyone “has” to go to college to be worthwhile, or to have a good life, has led to the near-bankrupting of an entire generation and the watering-down of academic rigor at American universities.  The only people it’s helped are the bankers holding the student loans (which are not, I might add, dischargeable through bankruptcy) and their friends on Capitol Hill.

So, no, I don’t think everybody automatically needs to go to college, but … For today’s teens, there are vanishingly few living-wage jobs available for someone with only a high school diploma.  There was a time when this wasn’t true, but things have (unfortunately) changed.  Some people will get the skills they need through apprenticeships, vocational certificate programs, the military, or other experience.  Some will get these skills through college.  Both paths should be respected and honored.

But the choice as to which path to take must be based on the person’s gifts, aptitudes, and interests, sought through prayer and careful consideration, not based on the person’s chromosomes and genitalia.