Friday, January 1, 2016

Utilizing Microcredit

This post is kind of a follow up to my last post about Poverty, Evangelism and Humanitarian Aid.

“Microcredit” is the loaning of small amounts of money to new businesses in the developing world.

Rather than simply giving someone an amount of money, loaning someone money to begin something that will bring them a lasting income preserves their dignity while also aiding them currently and for their future. This kind of “real” help brings lasting benefits to the local economy not just temporary benefits to an individuals pocketbook.

For example, Mr. Voorhies shared a story about a Malawi woman who was loaned $40 to start a business, which she has since thrived in and been able to quickly pay of the debt, send her children to school and grow her business. Instead of crippling her, as a receiver of handouts, the loaner enabled her to prosper.*