Empowerment. Opportunity. Personal accountability. These should be the guiding principles for the American foreign aid agenda. They are also the principles that define microenterprise and microfinance programs – and women are often the prime beneficiaries of these efforts.
Pioneered by Nobel-Laureate Mohammad Yunus, microfinance programs have a tremendous track record of success and empowerment, especially for women. The idea is a simple one: make small loans – typically under $100 – available to self-employed individuals in developing countries who otherwise would have no access to the credit necessary for their endeavors to be successful and sustainable. It is an idea that has helped the poorest of the poor in diverse regions and from diverse backgrounds to reclaim their future. For his efforts, some of my colleagues and I are working on gaining the necessary support to move legislation this Congress bestowing Mohammad Yunus with the Congressional Gold Medal.
For local cooperative groups that have sprung up around the world, a few extra dollars in loans makes all the difference for resourceful men and women who are eagerly taking advantage of this unique opportunity. Then the dominoes fall into place: ventures are able to stay intact, people rise out of poverty to become or remain self-sufficient, goods and services remain available, and the loan is repaid so the cycle may begin anew.
Earlier this year, there was a regional microcredit summit held in Santiago, Chile. According to the main report presented at the summit, of the 54.8 million poor clients reached by the microcredit system worldwide in 2003, 82.5 percent were women, with the number of poor women benefitting from microloans reportedly rising from 10.3 million in 1999 to 45.2 million in 2003. Working with partners like Results and such dedicated Results members as Gail Neumann, Betsy Skipp, Kathleen Gordon, and Ellen Kempler Rosen from my South Florida District, the U.S. can work to ensure maximum results for our support of microfinance.
However, for the women who receive loans from microfinance programs, much more than dollars is at stake. A microfinance loan is often a new taste of freedom for women in societies that have long prevented them from establishing their own financial independence. This is critical from an economic standpoint, as a vibrant economic picture will never emerge without strong contributions from women. But it is also invaluable from a social, cultural, and human rights standpoint. For some women, microcredit and microenterprise programs are providing them the opening they need to say that they are equal, and filling them with the confidence to push back if someone tells them that they are not. This is the kind of empowerment that can change lives – and societies.
This is also the kind of approach that should become a bigger focus of our foreign aid policy. Under our current system, not enough money is actually reaching the people for whom it can make such a difference. Too much reliance is put in government programs and bureaucracies, and not enough emphasis is placed on the power of the individual. But microfinance programs are changing the landscape. Microfinance puts money directly into the hands of the people who need it the most, and who also happen to be the ones who can get the most bang for our buck.
Across the globe, countless individuals live each day under the crushing weight of extreme poverty. Throughout our history, Americans have answered the call to help our brothers and sisters in need in our country and in countries far from our shores. We have undertaken relief efforts freely and with bold spirit. But as we face immense economic challenges and limited resources, we must look to innovative, potentially life-altering ideas that maximize our investments by building on the immense, sometime untapped, human potential.
As American Maggies, we believe that we have a special mission before us to advocate for individuals around the globe who need nothing but a chance – a chance to provide for their children; a chance to make their own living; a chance to forge a better life. With this comes not only relief, but empowerment. And with empowerment comes a new day for women.
******
Congresswoman Ileana Ros-Lehtinen (FL-18) serves as the Ranking Member of the House Foreign Affairs Committee.
Loading ...