This December, I will be going to the Central Region of Ghana through Global Brigades on a microfinance brigade with a number of other students from the University of Texas.  I usually am not one to step out of my comfort zone in such a bold manner, but coming to the end of my college career has forced me to think considerably about what I want to be and what I want to do in this world. I want to have an experience at the outset of my professional career that remodels my view on success, and an experience I can be truly proud of long after I leave the 40 acres. This opportunity seemed to be the perfect chance for me to accomplish these goals.

What is microfinance?

At the beginning of the semester, I had little to no idea of what microfinance encompassed. I have come to learn that microfinance is the provision of financial services to people living in poverty. These financial services include loans, savings, insurance, and financial literacy training. Microfinance has become one of the great success stories in the developing world over the past 30 years and has become widely recognized as a sustainable solution to poverty in developing countries worldwide.  In fact, the Bangladeshi professor of economics, Muhammad Yunus, that developed the concepts of microcredit and microfinance won a Nobel Peace Prize in 2006 for his “efforts through microcredit to create economic and social development from below” through the Grameen Bank.

Microfinance’s increasing role in development has been brought on by a number of factors. The first of which is the fact that the poor need access to productive resources, with financial services being a key resource, if they are to be able to improve their conditions of life. Another factor is the realization that the poor have the capacity to use loans effectively for generating income, saving, and repaying loans.

Many studies have been conducted on microfinance and its role in development. Generally, microfinance has been shown to help very poor households meet basic needs and protect themselves against risks, to improve household economic welfare, and to empower women by supporting women’s economic participation and promoting gender equity.

Microfinance creates access to productive capital for the poor, which when combined with human capital developed through education and training, enables individuals, families, and communities to move out of poverty. The provision of material capital to an individual in poverty can help strengthen his sense of dignity and empower him to participate in economical and societal affairs.

What am I going to be doing?

To get a better picture of what I will be doing, take a look at this 5 minute video produced by students who have gone to Ghana on a microfinance brigade in the past. To check out my personal page, click here!