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"Give a man a fish and you'll feed him for one day. Teach a man how to fish and you'll feed him for a lifetime." Poverty does not mean that people are clueless, lazy slobs who deserve to remain so. Poverty can come unexpectedly through natural or personal tragedy. Every poor person still has the breath of life and some human dignity which can bounce them back into a worthwhile existence. Micro-finance can be such a trigger.

Banks are by nature risk-adverse and like to give loans to those who knock on their door and already have money. On the other hand micro-finance providers seek out those who need to be pulled out of poverty and offer them the cash and expertise to reach an achievable goal. 97% of micro-finance clients repay their loan on time which would leave the banking sector green with envy if they knew what goes on beyond their marketing radar. When you live in the mist of abuse, corruption, loan sharks and the like you want to make a good impression in the community who reached out to you with such a lifeline. Suffering causes people to appreciate opportunities that come their way.

Micro-finance stands out from charity because it's not an open-ended transaction devoid of accountability. It is an investment in a community where funds are being recycled again when loans are being repaid. Paying off your loan puts you in good standing with yourself and the community. It also gives a chance for someone else to have a go with the same capital that got you out of your hole.

Micro-finance has its enemies where it exposes and upsets cosy arrangements of slavery, abuse and exploitation. Women turn to micro-finance to escape forced prostitution. Displaced minority groups bounce back into a normal existence.
Corrupt government cronies hate it because they cannot take their cut. They resort to tactics of slander to cast a slur on the white man who comes to colonise and alienate local institutions with his Judeo-Christian values.

Micro-finance takes its name from the ridiculously low amounts lent by western standards. US $50 to $100 can allow someone to buy a goat and have an ongoing supply of milk and cheese to feed their family and sell the surplus on the market. Those loans are usually repaid within 6 months. Another reason why traditional banks stay well clear of that market is because whether the loan is for $100 or $10,000 their processing costs are the same. Traditional lending without collateral is the realm of credit cards. We can guess how many divorces have been caused by encouraging wild spending and so the social responsibility of the established banking sector is something shareholders do not care about.

Micro-financiers on the other hand have a vision to seek out those lost in a woeful plight. They are experts in operating through local churches who identify the needs on the ground. They are highly creative in coming up with schemes that involve local channels of authority. They boost local productivity through simple technical advances or basic hygiene and nutrition standards. Micro-loan clients are not left to their own devices but are being supported and monitored through their local community.

Find out more at www.opportunity.org.au

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