Microfinancing

The microfinancing lecture was very interesting. I have always seen microfinancing as a very helpful way of helping people get out of poverty. I now realize that it can often have quite the opposite effect. People can try to use the money productively, but buying a cow is not going to do much for their financial status. The milk productivity cycle of the cow as well as the costs of feeding the cow will most likely leave the family in the same position in which they started. Loans do not usually result in increased women's rights, as the inability to pay back a loan can sometimes result in women being forced into sexual favors to receive more time to pay back the loan.

Dr. Pelkey does some microfinancing in India, but he works more to teach women various trades. Once a woman learns a trade, she has a valuable skill that can bring her money for the rest of her life. This further promotes women's rights, because the woman gains financial independence from her husband. Statistically, women are more likely to spend money on education and health care than men are, so having financially independent women will benefit society as a whole.

It was really neat to hear Dr. Pelkey talk about microfinancing, because he has hands on experience in the field. I would love to go on the summer India trip to further understand the process Dr. Pelkey uses to help the local woman. The whole issue really fascinates me.