Microcredit: Padma Venkataraman in India

By Kate | Permalink |

No Comments | April 16th, 2007 | Trackback

It was Padma Venkataraman’s quote on a CNN advertisement that initially caught my attention: “They don’t always have to be on the receiving end, and the donor on the giving end.”* It was in reference to a microcredit program she was involved in the development of, which organizes small loans, apparently from $10 to $200, so individuals can start their own businesses, in connection with Rising Star Outreach.

In this case, the individuals were those living with leprosy in southern India, many of whom had spent their lives begging or otherwise in poverty. Having a business and a socially respected way of earning a living means a lot; aside from being treated with dignity by others, it also entails the possibility to rise above the stigma associated with leprosy. Obviously regular income is an advantage as well.

Microcredit programs are in operation in a number of areas, and my lay person’s impression is that they frequently have good results. One common theme – or so I’ve informally heard – is for a loan to be disbursed to a community group and then repaid by the group. The group may be one of neighbors or other community members, perhaps joined just for the purpose of the loan, but this of course increases the chances that the loan will be paid back and indirectly encourages neighbors to look out for one another.

One of the most interesting aspects of microcredit in my view is that people are not simply recipients of charity who feel that they are receiving handouts, but are empowered to take action towards building their own future.

* This is not the exact quote, but the gist of it! If you have seen this ad and/or catch the quote word for word, please let me know.