Showing posts with label Microfinance. Show all posts
Showing posts with label Microfinance. Show all posts

Wednesday, 23 November 2011

Social Impact 2011: indigenous business, corporations and entrepreneurship: new models, stronger communities

SOCIAL IMPACT NATIONAL CONFERENCE 2011 
Indigenous Business, Corporations and Entrepreneurship:
New Models, Stronger Communities


The 2011 Centre for Social Impact (UWA) Conference is on the theme Indigenous Business, Corporations and Entrepreneurship - New Models, Stronger Communities. This important conference will shape opinion and understanding, and share best practice and research on the role of Indigenous business and Indigenous corporations in expanding economic opportunities for Indigenous people and creating positive social and economic impact for Indigenous communities.

Keynote speakers include Wayne Bergmann, CEO, Kimberley Regional Economic Development Corporation, Natalie Walker, CEO, Australian Indigenous Minority Supplier Council, Kevin McLeish, Managing Director, Argyle Diamonds and Ian Trust, Director, Indigenous Business Foundation.

In recent years there has been a significant growth in Indigenous business in Australia, providing new opportunities for employment, income and wealth generation. Indigenous business activity represents one of the most promising strategies available to address the chronic gap between the economic, social and health outcomes of Indigenous Australians and those of non-Indigenous Australians.
 

PROGRAM THEMES

• Balancing cultural values, employment markets and sustainable social impact
• Creative engagement: pathways and partnerships in the resource economy
• Indigenous business leaders in action
 
• Leveraging Native Title Agreements for Indigenous economic and social growth
 
• The delicate art of procurement: enabling Indigenous entrepreneurs to create a vibrant and engaging Indigenous enterprise sector
 
• Social enterprises in remote Australia
 
• Growing sustainable Aboriginal Community Housing Corporations
 
• Microfinance: Small loans for big impact
 
• Closing the economic gap: exploring the role of Indigenous business and self- employment
 

REGISTRATION: $990 (inc. GST) standard; $660 (inc. GST) not-for-profit organisations, Indigenous businesses and corporations.

RSVP/ registration required - www.business.uwa.edu.au/research/conferences/forum

Registration includes full program (8.30am-5.30pm) & post-conference event (5.30-7.30pm).

Speaker(s)
Wayne Bergmann, CEO, Kimberley Regional Economic Development Corporation; Natalie Walker, CEO, Australian Indigenous Minority Supplier Council; Kevin McLeish, Managing Director, Argyle Diamonds and Ian Trust, Director, Indigenous Business Foundation
Location
UWA Business School
Contact
Winthrop Professor Paul Flatau <Paul.Flatau@uwa.edu.au> : + 61 8 6488 1366
URL
Start
Tue, 06 Dec 2011 08:30
End
Tue, 06 Dec 2011 19:30
RSVP
RSVP is required.
Submitted by
Harpreet Kaur <Harpreet.Kaur@uwa.edu.au>
Last Updated
Wed, 09 Nov 2011 12:43

Can MicroMoney solve MacroProblems? Does Microfinance really provide widespread solutions?

As Fagin's song suggests, we should always review the situation. What is attractive in the beginning may have unforeseen consequences.  Human beings have a tendency to seek universal solutions and answers which in turn leads to one size fits all policies.  We can also be hubristic, pushing forward our solutions without reflection, without pause for review, without recognising the risks and benefits of human interconnectedness with others.

The work of Muhammad Yunus and the Grameen Bank are well documented. In 2006, Yunus and the Grameen Bank were jointly awarded the Nobel Peace Prize. Earlier this year Yunus was ousted from the bank he founded. An appeal was dismissed. Yunus's concept of microfinance has been imitated by others and operates in other countries outside Bangladesh.

Ned Breslin points out in the simple video below how microfinancing is not always the success story that is promoted.


He points out:

I am a big fan of microfinance, having started my first microfinance project for water and sanitation in rural KwaZulu, Natal, South Africa in 1993. But I learned very quickly in this project that there was often a gap between repayment rates and actual impact. The microfinance sector spends a great deal of time focused on repayment rates -- with organizations suggesting that they are successful and impactful because they can show a high repayment rate on the loans that they made. To illustrate, MFIs will often publish statistics like 95% repayment rates on loans and suggest that this means they are great at transforming poverty and changing lives. 

Repayment matters of course, but it does not in any way confirm the impact of the loan. In the case of water and sanitation, a focus on loan repayment as the key (or only) indicator of success is misleading. Repayment of loans simply show that money was used to purchase a latrine and the money was paid back by the family.

But in this example from rural Bolivia I show that the real impact question is about whether the loan actually changed the lives of loan recipients? And as I learned in South Africa and since, the answer is often no. Families take out loans because they want to change their lives with that loan. That is great! 

But if the toilet is poorly constructed, if the system does not work, or if a tap is paid for by a loan but water rarely is available at that tap, then the family took out a loan, repaid that loan and the investment had no impact on their lives. In fact, the loan might have made the family poorer in the end! 

In the example here, the loan scheme was linked to a water project that was never completed. The family in this video took out a loan to get a flush latrine that has never been used because the water project -- started 6 years ago -- was never completed. The toilet is now useless.

Microfinance success should be judged on whether loans transformed lives, 
not on whether loans were repaid.


Further reading:



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