Imagine playing a game of Monopoly but starting off with less than a dollar. Without access to any credit, each roll of the dice lands you into more debt and the cycle of poverty rolls on. Think of microfinance as the “Advance to Go” card that allows you to collect a small yet sufficient amount of money to invest in. For 2/3 of the world’s population living on less than a dollar a day, the “Advance to Go” card is their only viable option for breaking the cycle of poverty.
Microfinance creates partnerships that allow the poor to gain access to financial services, to move towards self-reliance, to build the capacity of local businesses and local knowledge, to foster entrepreneurship and to increase income, assets, security and hope. Inevitably, microfinance can serve as a cornerstone for better health, gender equality, improved education, empowerment and a poverty free world.
Mike Lafleur
Whereas the economic term monopoly is defined as the domination of a market by a single provider, microfinance allows millions of providers to provide for themselves. Indeed there is a new game to be played!
- Mike Lafleur, age 29, Alberta, Canada
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The Doingmypart.Coop Youth Contest
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The short essay above is one of two winning essays from Développement international Desjardins (DID)'s DoingMyPart.Coop Youth Contest. In fall 2007, DID invited Canadians aged 18 to 30 to express their opinions on microfinance in an essay contest organized in partnership with Jobboom, COOPSCO and CIDA. Now in its second year, the contest is a way for DID to make Canadians more aware of international development and to spotlight young people who can clearly articulate their thoughts on a current issue. This year's essay question was: Is microfinance a solution for sustainable development in developing countries?
The two grand prize winners were Sarah Kelly of Quebec and Mike Lafleur of Alberta. Mike Lafleur is an Education Program Developer with the Centre for Affordable Water and Sanitation Technology, an organization dedicated to developing new technologies for making affordable water and hygiene services available in developing countries. His essay (above) expresses the dilemma of the 1.2 billion people in the world who live on less than one dollar a day. Sarah Kelly is studying for a Master’s degree in ethics at the Université du Québec à Rimouski. Her essay below portrays a Peruvian mother with very limited means for improving her family’s living conditions:
Her day begins...
It is 5:30 am. Her day begins on this damp December morning in Peru. She knows the routine and the reason: feed her three children, at least for today... All day her unfailing fingers will weave the products they know so well and then the children will sell them. The small profit, if there is any, will be spent on yarn and dye. She cannot afford to send her little ones to school and they already work so hard. It is impossible to break out of this vicious circle that keeps them in this vulnerable state.
What if someone gave her the chance to plan ahead, a chance to get ahead? What if there was a source of financing that would let her start up a new project with others in the same situation? An opportunity that would encourage community activities and create jobs, enabling them to break through the barriers that confine and condemn them. It would be possible to find new ways to meet the many needs of the community while at the same time building for future generations.
Microcredit programs offered in developing countries affect sectors as diverse as agriculture, craftwork, the social economy and social protection. These programs contribute to improving a multitude of social, medical and family services. Microfinance services provide members of the community with the independence to create innovative projects of their choosing, projects that will lead to new lives.
Sarah Kelly
It is 5:30 am. A new day begins for her and her children in this land of a thousand opportunities …
- Sarah Kelly, age 23, Quebec, Canada
The quality of the winning essays shows young people's awareness of development in countries in the South. This year's winners will travel to Tanzania in East Africa for a one-week education tour of Tanzanian financial cooperatives. Students will meet with employees, managers and members and discuss the practical benefits that access to basic financial services provides for them and their families.
Développement international Desjardins (DID), a component of the Desjardins Group, is the largest integrated cooperative financial group in Canada, specializing in providing technical support and investment for community finance. For over 35 years, DID has provided support for the creation, development and strengthening of financial institutions, and currently works in Africa, Latin America, the Caribbean and Central and Eastern Europe.