Radio Netherlands Worldwide

It may sound harsh or politically incorrect but the truth is that the Poor are poor because of their poor priorities.The main reasons of poverty are:1.Unplanned large families-Much of the resources earned are spent in bringing up the large family and treating the sick members 2. Illiteracy- It means less choice of a better and well-paid job 3. Addictions-Menfolk drown their frustrations in alcohol and drugs, which means less money for the family 4. No future planning-They live for the day and either they don't save for the rainy day or they don't have enough money to save. 5.Competing with the better placed relatives/friends-Especially common in India. For some people, it is imperative to have TV with cable connection, a motorised vehicle, have gold ornaments and expensive clothes, spend lavishly on marriages and give dowry to daughters. Nothing wrong in it but the fact that they do not have the resources for these simple luxuries, so they borrow money for this from the money-lenders on huge interests, or now from microfinanciers! Since they cannot earn enough to repay and bring up the family as well, they are laden under heavy debt. Take the case of Bidi from India:she used the money from moneylender to give dowry to her daughter, which is like throwing money into the black hole, which means no returns from this 'investment'..Had she used that money for some business, she would have been able to earn some amount to repay the debt.The cow she bought from micro credit died, Now who is at fault-the MFIs or the borrower? We cannot blame MFIs for the wrong investments of the borrowers.The borrowers should have the wisdom and long-term planning about investments and returns. My suggestion is that the borrowers should be first counselled by the MFIs about the local businesses, which give them good return and a word of strict caution that these credits are not to be used to buy items of luxury for home use or giving dowry to daughters, as then this money will be lost forever, and the basic concept of micro credit will be lost.