"If we want to take a realistic look at microfinance, we have to take off our rose-coloured spectacles," says Radio Netherlands Worldwide editor-in-chief Rik Rensen. At the beginning of 2010, RNW looks at the issue of who actually benefits from microfinance.
"In the first place, it’s banks that benefit," says Mr Rensen. "A bank would be mad to grant loans if it didn’t make a profit." And thus one can see managers of microfinance organisations in Ghana, for example, driving round in shiny cars while the people who take out small loans have difficulty paying the 30 or as much as 40 percent interest they are charged on the credit they receive. According to Rik Rensen, the recipients will only really profit from microfinance once they learn how to deal with money through financial education.
Radio Netherlands Worldwide will focus on the less well-known side of microfinance in a series of radio programmes, videos and internet articles.
The Netherlands’ Princess Máxima, who is special advisor on microfinance for the United Nations, and Dutch Development Minister Bert Koenders will attend an event on the subject organised by Radio Netherlands Worldwide at the Peace Palace in The Hague.
Email this Video
Printer-friendly version
As a general rule in economy banks always benefit from the deals they make, once we know that we have half of the issues related to our finances figured out, it;s something I learned from Kirk Sanford. It's also true that financial education is a must for the economical development so I think the program should focus on that too.
I must congratulate RNW and Rik Rensen, for taking a deeper look and highlighting microfinance and how it is ruining the people who go for it. I hope this will have a positive effect on microfinance and the poor will benefit from the changes that take place due to the RNW initiative. Now that's a good media.
Post new comment
Please be reminded all comments must be in English, short and to the point - guideline 250 words. Abusive and inappropriate comments will be removed.