Canadian government should support developing economies
Wednesday, Jan 29, 2014 06:00 am
Bank loans are often a necessary evil for anyone climbing the ladder to success, but for millions of the extremely poor, there is no credit and no collateral or assets.
In fact, there is often no food and barely a roof overhead. This is where micro-finance enters the picture. But wait. Before a loan can happen, these needy people often need to be first stabilized with food allowances or water filters and then educated on how to use the loan efficiently and to the best advantage. When you have nothing and someone gives you money, the temptation is to buy food but the best use of micro loans, some as low as $25, is to perhaps buy a sewing machine or seeds to grow a crop to sell. There are programs that have been created to teach about nutrition and how to access healthcare as well as how to stabilize income and improve self confidence. These ‘Graduation Programs’ have been proven to work and the graduates are eager to get started at creating successful lives for themselves and their families. As well as supporting micro-finance, I want to see a larger percentage of our government’s financial aid budget invested in graduation programs that help the poorest of the poor gain access to the first step of the ladder to success.