« Musharraf's Waziristan Bargain: Cooperation or Capitulation? | Main | Kabul-Kandahar highway, Musa Qala, and Senlis Council »

October 23, 2006

Microlending and Afghan reconstruction?

Grameen_yunus_dec_04USAID announced this month (clip below break) that $80 million will be distributed in small loans to rural Afghans over the next three years. This is a welcome initiative. Credit programs exist in Afghanistan, but on too small a scale to compete with the array of traffickers who already occupy the role of lender. These traffickers extend cash to impoverished farmers at usurious rates (and with predictably harsh penalties for non-payment) in return for future payment in cash or poppy sap.

Micro-lending programs are powerful because they correct a market failure--the stifling absence of credit for poor people. For years, Muhammad Yunus, who received the 2006 Nobel Peace Prize for his work at the Grameen Bank, has argued that despite their lack of collateral and traditional "creditworthiness," poor people -- and especially poor women -- can make highly reliable borrowers.

You can read Dr. Yunus's excellent Wall Street Journal op-ed here (A Hand Up, Not a Handout.) He argues that loans are usually more effective than grants, even -- and especially -- when the needs are greatest.  Counterintuitive? Read his argument:

In Bangladesh, we've learned that when aid is free, not only do the poor get the least of it, but everyone inflates their needs. While some handouts are clearly necessary in such times, we focus on lending small amounts of money. This lets us keep costs down and rebuild funds for the next disaster. Most importantly, our Grameen banks are ready to act at a moment's notice. They can respond to a disaster without waiting for anyone's permission, immediately becoming like humanitarian agencies by suspending loan payments, and providing cash, food and medicines.

Micro-lending provides a counterbalance to the two biggest problems we've seen in reconstructing Afghainstan--the problem of administrative costs and bureaucratic delays implicit in foreign aid. The point of Yunus's article is to recommend microlending for Katrina victims, but it raises the question: are we doing enough to support microlending in Afghanistan?

 

Here are some details on the USAID program:

USAID to provide small loans to thousands of farmers
KABUL, 10 Oct 2006 (IRIN) - An estimated US $80 million will be distributed over a three-year period in the form of small loans to some 60,000 people across Afghanistan to boost rural development and livelihoods, the United States Agency for International Development (USAID) said on Tuesday. . .The USAID director said the purpose of the project is to provide expanded access to rural financial services in key areas of Afghanistan. The goal of the new programme is also to establish 50 new credit unions providing services to 50,000 clients, and to establish 30 farmers’ cooperatives to provide services to 20,000 clients, USAID officials said.

Posted by Carl Robichaud on October 23, 2006 at 02:07 PM in Economics, Opium, Reconstruction, U.S. Policy, Women |

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341d843653ef00e5506d2a798833

Listed below are links to weblogs that reference Microlending and Afghan reconstruction?:

Comments

Micro lending is a welcome initiative but fraught with dangers if the homework is not done properly. I have myself visited the offices of Grameen Bank, ASA, BRAC, PKSF in Bangladesh and come to the conclusion that for success in micro lending or micro finance - 3 things are essential. First : To have an able bank like Grameen Bank spearheading the role of the lender. Two : The role of training is essential - here is where ASA can come in. Like the Chinese proverb - If a man is hungry, do not give him food but teach him to fish !! and 3) Have a monitoring body like PKSF - funded by World Bank which can keep a tight leash on notable NGOs. With $80 million floating around - a lot of it will vanish in fictitious lending. PKSF can play a stellar role. Though I am an Indian, I think the Bangladeshis can play a far bigger and a more constructive role in Afghanistan if they bring their collective micro finance strategy in place. Like I said and I reiterate, it needs all the 3 elements in place for it to succeed. And finally the atmosphere and the idea has to be sold. In Bangladesh itself, the volunteers of these Micro Credit NGOs were brutally assaulted by Muslim fanatics in countryside whose only slogan seems to be : "Banglare koribo Taliban" (We will make entire Bangladesh into a Taliban state). But life goes on there, and so should it in Afghanistan too !!!

Posted by: ANJAN SENGUPTA | October 24, 2006 at 04:39 AM

"are we doing enough to support microlending in Afghanistan?"

Unfortunately, no matter how hard we try to support this, I don't think it will be enough.

Posted by: Hamed Elbarki | April 21, 2008 at 05:27 PM

HAMED ELBARKI, WHO MADE A COMMENT ABOVE IS AN EXCONVICT AND A FRAUD. HIS COMPANY ATI, AVENTURA TRUST INVESTMENTS, IS FAKE. HE CAPTURES OTHERS PEOPLE´S MONEY WITH FAKE DOCUMENTS. MANY PEOPLE ARE LOOKING FOR HIM. HE AND HIS COMPANY OWE MILLION DOLLARS. HIS PARTNERS: GRANT HEMINGWAY AND EIMY ULATE ARE WELL INVOLVED IN ALL HIS FRAUDS.

Posted by: CAROLINA VALLEJO | December 05, 2008 at 08:31 PM

Please come topriston tale Gold
priston tale Money
buy priston tale Gold
cheap priston tale Gold

If you come, we will give you a great surprise!

Posted by: hdgvsfgerf | January 06, 2009 at 04:21 AM

I am so happy to get some Perfect World Gold and the Perfect World Silver is given by my close friend who tells me that the Perfect World money is the basis to enter into the game.
Therefore, I should Buy Perfect World Gold with the spare money.
I gain some pw Gold from other players.
Then I share the cheap Perfect World Gold with my friends.

Posted by: cheap Perfect World Gold | January 19, 2009 at 09:07 PM

Yesterday, my boyfriend gave me a lot of Asda Story gold and I buy Asda Story Gold as the gift to return him.

The Asda Story money is attractive and I have plenty of the cheap Asda Story gold.

Posted by: Asda Story money | February 24, 2009 at 12:51 AM

Do you know seal cegel? I like it.
My brother often go to the internet bar to buy sealonline cegel and play it.
After school, He likes playing games using these seal online cegel with his friends.
I do not like to play it. Because I think that it not only costs much money but also spend much time. One day, he give me many cheap seal cegeland play the game with me.
I came to the bar following him and found buy seal online cegelwas so cheap. After that, I also go to play game with him.

Posted by: buy seal online cegel | March 14, 2009 at 03:54 AM

Hamed Ahmed Hamed Elbarki is available in Alexandria Egypt, you can also locate him in Cairo his office address where he is performing his new scam is 8 Road 213 Maadi Degla Cairo Egypt Postal Code 11435 Tel: +20225214150 if you're really serious about your claim you better call interpole immediately to catch him.

Posted by: informer | March 28, 2009 at 06:39 PM

NIKE Dunk contest, slam Dunk, Nike SB Dunk 09,Special Sale Offering, wide selection of NIKE DUNK,100% Quality and Package, Free shipping worldwide, 1 week delivery.

Posted by: Nike SB Dunk | May 17, 2009 at 11:35 PM

Desktop computers Toshiba SADP-65KB AC Adapter are generally Gateway ADP-65HB AC Adapter high performing machines when compared Acer SADP-65KB(REV.D) AC Adapter to notebooks of the same Compaq Pavilion DV9000 keyboard price range. This even though Original Compaq Presario M2000 AC Adapter is being abolished slowly Original Gateway PA-1700-02 AC Adapter by improving cutting edge Gateway ADP-90SB AC Adapter technology, this will not hold Dell Inspiron 1501 AC Adapter true. As energy Dell 1503FP LCD AC Adapter and portability are HP Pavilion DV5000 Series keyboard prioritized goals for a notebook Dell Inspiron E1505 AC Adapter than absolute performance. We have Laptop parts come a long Dell Inspiron 9300 Series keyboard way since notebooks Dell PA-12 AC Adapter came to the market Gateway M460 AC Adapter for the first Dell AD-4214N LCD AC Adapter time. Back Dell 1702FP LCD AC Adapter then a notebook Delta SADP-65KB (REV.B) AC Adapter was not only Dell Inspiron E1505 Series keyboard heavier in weight but Original HP Pavilion DV9000 AC Adapter also lacked features Apple A1021 AC Adapter that are very common in the modern Acer Aspire 1410 Series AC Adapter notebooks. For instance, few Original Toshiba PA3467U-1ACA AC Adapter would have ever imagined to get connected to the Internet sitting at the balcony in wireless environs with the help of a built-in wireless card in their notebook. The sequencer Acer PA-1700-02 AC Adapter is software that Dell Inspiron E1705 AC Adapter records and processes Liteon PA-1900-05 AC Adapter the signal from the Toshiba PA3396U-1ACA AC Adapter sound card. You Dell XPS M140 AC Adapter can track, slice, Dell Inspiron E1705 Series keyboard cut, paste, normalize, Dell Inspiron 6400 Series keyboard time stretch Dell Latitude D630 battery add effects amongst Dell Latitude D600 Series Battery other magical Dell 1701FP LCD AC Adapter tricks. The Gateway PA-1700-02 AC Adapter sequencer choice is vast, the best thing is to consider your budget. Mobile PCs Dell Inspiron 1300 AC Adapter use a stylus Toshiba PA3467U-1ACA AC Adapter for input on a touch Dell Inspiron 6000 Series keyboard screen using an on-screen Dell Latitude D620 battery keyboard. The Mobile PC Samsung AD-4214L LCD AC Adapter may have capabilities Toshiba PA-1650-01 AC Adapter of handwriting recognition, allowing Dell Inspiron B130 AC Adapter the user to input Toshiba SADP-65KB AC Adapter text using the stylus Dell XPS M140 Series keyboard on the screen and usually offers selection, and drag and drop facility traditionally provided by the mouse using the stylus.Today, you can walk into Laptop parts many brick-and-mortar Laptop Acer AC Adapter electronics and computers retailers Gateway Laptop keyboard and expect to find laptop bargains. Toshiba Laptop keyboard They are just about everywhere. Dell Laptop AC Adapter Prices for bargain laptops have become so low that walking out of a store with one for yourself and Liteon Laptop AC Adapter and one for a friend is even an option.

Posted by: lynn | May 18, 2009 at 12:44 AM

Links of London
Links of London Jewelry
Links of London Charm
Links of London Necklace
Links of London Bracelets
Links of London Earrings
Links of London Rings
Designer from UK
Diamond
GoldSilver
Links Jewelry
Links Necklace
Links Charm
Links Earrings
Links Rings

Posted by: links of london | May 20, 2009 at 02:14 AM

Crazy about running warhammer gold? Yup, it is so crucial indeed for us in Warhammer Online. Without it, we can even do nothing, without money to buy items, weapons and so on. So enough warhammer gold is substantial. Then is warhammer power leveling essential, too? Yes, you are right, you can level your char faster by warhammer power leveling service.And you should buy enough aoc gold in Age of Conan, because aoc gold is the important currency which would help you to enjoy your game life better. As the currency in the Final Fantasy XI, enough FFXI Gil is very important. Compared with other FFXI service offering stores, Gamevive.com have lots of cheap Final Fantasy XI Gil in stock, so come here to get your cheapest Final Fantasy XI Gil now. Ok, we have lots of EVE ISK mining guide. Good luck and enjoy collecting your EVE Online ISK. Stop looking around for atlantica gold (atlantica online gold) now. Get the gold from GMbar is a short cut to enjoy more fun in the game! Just buy cheap atlantica gold with fast delivery here!

Posted by: wow gold | June 11, 2009 at 05:16 AM

Next »

Verify your Comment

Previewing your Comment

Posted by:  | 

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment