IA3M Project: Microcredit - A real solution

segunda-feira, 28 de janeiro de 2008

Microcredit - A real solution

The microcredit can be seen as a true example in which the poverty fight ideals can, in practice, be applicable overcoming the old utopias that by economic, technical or political reasons cannot emerge although they are full of good will. .

Here, the microcredit should be faced as low capital loans to low income people in order to eradicate poverty. The users don’t have access to the traditional bank loans due to the scarce guarantees shown. This way, it’s impossible to start a family business making daily survival a hard job. So, the microcredit appears as a hopeful alternative to these families.

The amount of money involved is low ( in developing countries it usually don’t pass the 220 dollars) and the rates of interest still high when compared with the conventional bank rates but are an alternative to the money lenders (people that lend money with 120% to 300% of rate of interest)
The microcredit rates also support a pack of services included in a microcredit context as technical advertisement (since the main goal is the small businesses), sanitary and nutritional education, basic skills training and also promote an integration in a beneficiary group that help each other improving the chances of success.

We must note that most of the microfinance programs in the developing countries point directly to women, because they are the majority of the under poverty line population and get socially excluded. Although, they show great capacities and the necessary will to manage and expand a business.
Having a stable income source makes possible to pay the loans (the repayment rate is between 95% and 98%) to improve the family lifestyle and also creates conditions that allow children to attend school. These small loans work like a stone in the lake causing a positive impact in the people surrounding the beneficiaries. Small amounts of money produce bigger capitals which make even possible to contract employees helping other families.

The institutions that provide these services work totally or almost in a self-sustainable way because the return loans are reinvested in other loans and services, although sometimes other help is needed like the one provided by organizations, governs and philanthropists.

To guarantee the future of the services, it is considered that poverty, especially in small communities, it is predictable. Sop, it is possible to calculate the associated risk in each business dependent on the kind of activity created, owner’s experience, age, gender, lifestyle etc. This way not only the repayment rates get more secure but also the users trust do.

As we can see, the microfinance’s centers are actual development associations giving back hope and creating valuable opportunities.

For further information please visit:
Grameen Foundation
MicroFinance
Grameen Foundation(Real Example)

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DUARTE G

Today, we hear on television and read in newspapers and magazines, talking about the humanization and solidarity to countries in the 3 rd world. There is community aid from part of governments of industrialized countries. So these problems must not be only of governments but of all of us in general, the young people, because the future to all concerns and each of us must develop the potential that exists in each of the parts of the planet Earth. Then, we thought about applied innovations in 3 rd world’s countries because in these places, the resources are limited, and every day saw images of misery, degradation and even death. So I would like to, at least, think and try to bring into practice something that can help others, using a prototype that we intend to build.

DUARTE N

This project, in addition to allowing me to develop capabilities, allows me to be more active in the world in which we live, taking position and helping the neediest villages. Since my area is science and technology, this project will enable me to develop skills and abilities in subjects such as physics and mathematics, as well as strengthen and encourage mutual and group work. I hope we can achieve all our projects now that would be more valuable to people in developing countries. Not that we think that we will change the world, but we can consider this as only an aid in relation to one of the many problems that these people face.

LUIS

As one of my biggest factors of enthusiasm and concern (mainly at the level of new forms of energy production), soon I demonstrated interest in a topic related to renewable energies.
With the group made, in which all the elements had (and have) interest in a theme of renewable energies and innovations, it was necessary to "find" an issue / theme that would allow an objective work, since this Thematic can be quite broad. Thus, in accordance with the various discussions and presentations of ideas, it was devided the theme of our project: "Innovations Applied to the Third World."
The project covers various topics of my interest, and in my personal point of view, society in general. The "simple" idea of being able to help the most needy offers me a will and an enthusiasm to the development of the project. And since this project, in addition to the opportunity to work on issues that arouse interest me, allows me to acquire new scientific knowledge and culture (which would otherwise not be acquired) will bevery rewarding work with the group.
The development of a water filter, which can be produced at low cost, it offers a type of work that is not available in the area of science and technology. Having said this few words, I'll take this opportunity to express my optimism with the group.

VASCO

I must confess that Project Area has always caused on me a lot of doubts, about the class model, the evaluation method and mostly about its importance to our life. My doubts didn’t go away but, until now, it has been a positive experience because it has helped me to be in touch with interesting knowledge and realities. So, it’s an open space where I can explore the world, explore myself and also improve some skills which will enrich me as an individual.
I still don’t know what degree I will take but working in this project has increased my interest on innovation, environment, technology, physics and developing countries, topics I would like to work since they are all related with each other, as we have seen.
So, I’m enthusiastic and optimist with this project and with the amazing innovations that keep being created every day, because I know that more and more people is worried about the underdevelopment countries issues, trying to find solutions, in a creative, environmental friendly and economic profitable or at least sustainable way (imperative factor).

IA3M Project