Comments on: Beyond Good Intentions: Micro-lending http://www.seattlemicrofinance.org/beyond-good-intentions-micro-lending/2009/06/09 Connecting the Microfinance Community Wed, 08 Feb 2012 17:24:40 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Sam Sellers http://www.seattlemicrofinance.org/beyond-good-intentions-micro-lending/2009/06/09/comment-page-1#comment-838 Sam Sellers Tue, 09 Jun 2009 17:27:08 +0000 http://www.seattlemicrofinance.org/?p=1311#comment-838 I think that your critique, regarding her inability to dig deeply and her lack of inclusion of other financial instruments, is understandable. However, I feel that Tori's argument was not that microfinance is bad, but rather that successful microfinance organizations are those which set up a *system* of education and support for their borrowers to help them learn how to manage their businesses. Loans are like the other financial instruments you discuss in that new users need an effective support system in order to make sure that they use these tools responsibly. The picture she painted in Mozambique was one where there were few standards or regulations regarding the governance of microlending groups and poverty reduction came second to the interests of the lender. Standards and a systematic approach to poverty reduction are what's needed in order to make microlending successful. Note: As a summer intern for Global Washington, I feel that it is pertinent to note here that my views are not necessarily those of the organization I work for. I think that your critique, regarding her inability to dig deeply and her lack of inclusion of other financial instruments, is understandable. However, I feel that Tori’s argument was not that microfinance is bad, but rather that successful microfinance organizations are those which set up a *system* of education and support for their borrowers to help them learn how to manage their businesses. Loans are like the other financial instruments you discuss in that new users need an effective support system in order to make sure that they use these tools responsibly. The picture she painted in Mozambique was one where there were few standards or regulations regarding the governance of microlending groups and poverty reduction came second to the interests of the lender. Standards and a systematic approach to poverty reduction are what’s needed in order to make microlending successful.

Note: As a summer intern for Global Washington, I feel that it is pertinent to note here that my views are not necessarily those of the organization I work for.

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