“Women hold up half the sky”* – The Role of micro-loans

Goldman Sachs, in their Global Economics Paper No: 164 titled ‘Women Hold Up Half the Sky’, assessed the latent value of educating women and the potential impact such movers would engender in BRICS (Brazil, Russia, India and China) and N-11 countries (the next 11 which are Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam). It is well worth the read especially the later sections which discuss the micro and macro changes that can emanate from education. What this paper does not really touch upon is the empowerment and learning that comes from ‘micro-loans’ or ‘micro-finance’. A friend works in this area in developing countries and often speaks of the transformative power of small loans given to women to start-up small businesses. Typically, these loans are administered by local case managers who also provide basic skills training in the area of business management and marketing.

In Pakistan, Kashf Foundation provided a micro loan of just $65 to a marginalised woman by the name of Saima. Saima used this money to start her own embroidery business – she purchased cloth and beads and then sold her finished products on to merchants working in a local market. You can read more about Saima in this NYT article. Care International also has a great microfinance program.

Muhammad Yunus, a professor of economics from Bangladesh, is credited with developing the concept of microcredit and was awarded the 2006 Nobel Peace Prize (with the Grameen Bank that he founded) for "for their efforts to create economic and social development from below."

As a marketing academic, it’s exciting to note the range of careers available to our graduates (and even us!) in this area. Kashf Foundation career opportunities and Care International employment opportunities.

Following on from Stephen’s recent post, there is a role for ‘marketers without borders’. Marketers have a significant role to play in communicating project goals and aims to the broader community. There is also a vital role to play in the area of disease control/health promotion to name but a few. However, Muhammad Yunus, in a 2006 interview with Paul Solman (a PBS NewsHour economics correspondent) offers a word of caution, albeit in the context of micro loans. He stated “I invite everybody to come into micro-credit area. But one thing I want to distinguish and also urge them: Don't make it an area to maximize profit. Because when you maximize profit, you minimize the benefit to the people”.

*An old Chinese proverb