Letters to the Editor
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Microfinance the projects of the developing world
The mircofinance critique is a valid one. They do foster promoting traditional roles as a way to progress. The other part of that problem is that they tend to stagnate and don't really lead to development. I liken it to projects. For a few they provide a leg up to achieving more prosperity, but they mostly perpetuate a cycle. The benefit, they can enhance the chance to sustain at a low level, but as for development- well since the 1970's, not so much. The other flaw is that these loans go almost entirely to women. One partial myth is that women are better at paying back the loans. In some cases, the women collect the funds, and hand it over to their male counterparts. Also, those scenarios when the funds are extended to men have shown that they create enterprises more in line with true development. A factor that UNDP is loathe to acknowledge and they fall back on the higher rate of risk in making loans to men. My own thoughts is that microfinance fails because it excludes men. It also makes me uncomfortable because it is usually tied to imposing western values under the guise of human rights and beliefs. Lastly, Goldman Sachs would be better served by a gender neutral programs, particularly here in the United States, just ask black men and latino men. So once again the UN and UNDP are fanning the passions of the time which in an objective examination are not dedicated to the needs of all humanity.