Blogging from Villgro’s Unconvention in Chennai, India
Paul Polak, Founder of IDE, D-Rev and now Windhorse, has been talking to farmers for over three decades. What do they want? They want to make more money. How? They don’t know. This is where Paul and his organizations generally jump in, providing new tools, new ideas, new solutions–all affordable, applicable, and practical.
In an interview earlier, I asked Paul about microfinance. After all, if poor people want more money, can’t we just give them a dose of financial inclusion? A sprinkle of microfinance, if you will? Ahem, not necessarily.
If you give a homeless man in America a credit card with no constraints, he won’t necessarily get out of poverty. He’ll likely grind himself into debt.
Microfinance is generally only as good as what it’s meant for, i.e., what matters is what that money is spent on. If it is spent on food or a wedding or even education–it won’t change a family’s current situation. But, if the loan is earmarked for a treadle pump, a tool that can create or dramatically improve a livelihood, then it provide real value. A gift that keeps on giving, if you will.
Stay tuned for the entire video interview…to be posted soon.
