One of the most effective and sustainable tools in helping families to escape poverty is Microfinancing. With the help of these schemes and their own resourcefulness and integrity, families are able to improve their access to education and healthcare.
Success is due in part to the structure of the lending institutions which range in size from corporates, NGOs to our own Volunteer in Brazil. All working to mediate small business loans directly to people who have ideas for generating an income but who cannot access standard commercial finance. This direct funding greatly reduces the opportunities for embezzlement and mismanagement.
Business ideas put forward for funding are as varied as the people are creative with many ideas based around agriculture and home crafts. Chicken rearing, beef fattening and commercial crop growing are three projects that Volunteer in Brazil is currently supporting families with.
The concept of micro finance is credited to Mhuammad Yunus who said in his Nobel Peace Prize acceptance speech that
Poverty is an artificial creation that can be changed by policy and institutions.