7/01/09

bugsey wrote:

Thanks guys....we should also perhaps try to help ALL-- even the Iranians -- to get back their liberty by blogging about it. @Amina - there is no doubt that poverty dehumanizes indeed!

4/16/09

AngieA wrote:

wow, that's some comment. :)

4/16/09

Amina wrote:

Hunger A subset of Poverty Poverty is the shortage of common things such as food, clothing, shelter and safe drinking water, all of which determine our quality of life. It may also include the lack of access to opportunities such as education and employment which aid the escape from poverty and/or allow one to enjoy the respect of fellow citizens.Poverty is also a cause of hunger. Hunger is a feeling experienced when one has a desire to eat. In a world of plenty, a huge number go hungry. Hunger is more than just the result of food production and meeting demands. The causes of hunger are related to the causes of poverty. One of the major causes of hunger is poverty itself. There are other related causes (also often related to the causes of poverty in various ways), including the following: • Land rights and ownership • Diversion of land use to non-productive use • Increasing emphasis on export-oriented agriculture • Inefficient agricultural practices • War • Famine • Drought • Over-fishing • Poor crop yield • Lack of democracy and rights • etc. Throughout the world increased food prices are taking an unprecedented toll, from developed countries to third world countries like Haiti and Kenya, where a desperate need for food leads to rioting in the streets. Two years ago, the World Food Summit participants promised to reduce the number of undernourished people by half by 2015; instead, there has been a dramatic increase in hungry people in developing countries. The ones that suffer the most are the poor and hungry children. Most experts agree on the primary reasons for the recent and projected increases in global food prices. The record price of fuel pushes up the cost of food production, packaging, storing, and transportation. Solution of hunger or poverty in my point of view is MICRO CREDIT. Poverty reduction is not only the task of the Government and the whole society, but it is first of all the responsibility of the poor themselves to develop the capacity to escape from poverty. Although it is the responsibility of government to help eliminate social and economic constraints and barriers in order to eliminate hunger and reduce poverty, the outcome will be weak if the poor themselves do not actively strive to improve their living conditions. Poverty reduction must be seen as the mission of poor people and poor communities themselves; because it is their own self help efforts to escape from poverty that is the driving force and necessary condition for attaining the goal of poverty elimination in all countries. The State will support the poor to enable them to learn how to escape from poverty and avoid falling back into poverty when risks befall them. Apart from providing direct material support to the poor, providing them with guidance on how to produce and do business and how to develop their economic activities, given their particular conditions and circumstances, is the very condition for rapid and sustainable achievement of poverty reduction. Although micro credit is a good concept but Micro finance institutes in Pakistan are making people more dependent then independent. People know that when they will need money they can take it from micro credit institutions easily and will return amount back on small interest. People of Pakistan are like that; If you walked down the street and gave every passerby rupees hundred, many would just spend it right away or gamble it rather than managing it and trying to make it grow .I would say that purpose of micro credit institution should be to make people independent not dependent, to make them able to set any source of income for their family. Poverty reduction objectives should be consistent and visionary: the goal should be to not only improve the living standards of the people, but also to create opportunities and a legal foundation for improving the Poor’s intellectual level and sense of law compliance to enable their participation in the economic, political and social life of the nation. State policies and mechanisms should not only focus on fighting against poverty but also on preventing the falling back again into poverty. First of all micro credit institutions should brief clients that what can be the best use of this credit. Micro credit system can be improved in such a way that micro credit institutions can do a contract with companies like BATA and Unilever. Suppose micro credit institution do a contract with BATA. Micro credit institution gives credit to their client he then purchase BATA sandals and sell them in his area. This method will be beneficial for both company and client. With Unilever a contract can be made that a person takes credit from micro credit institutions and purchase sachets of soap, toothpaste and shampoo of Unilever and sell them in his area. For female Clients micro credit institutions can make a contract with boutiques and clients can take credit from micro credit institutions purchase a sewing machine and can sew cloths for boutiques and can earn income for their family. Through this they can earn enough to return credit. Micro credit institutions should hire training managers or they should do partnership with those institutions that will be core staff, equipped with basic knowledge and qualified to brief people and their duty will be to train customers with fewer fees for the purpose they are taking credit. In one specific area if mostly trend is to take taxi. So; in this area micro credit institution should hire training managers (expert in driving) or they can do partnership with driving centers who will train them drive. Otherwise credit will be of no use. Let’s say customer is taking money to purchase a taxi but he doesn’t know driving then there is no use of that credit. First he has to learn how to drive by paying heavy fee to driving centre but through micro credit trainers he will learn driving in less than half fee. Other important issue is Monitoring. Micro credit institutions should have a proper monitoring system. Such a system has to be made in which a proper record has to be prepared that for what purpose credit is taken it is used for that purpose or not. If not then why it is not used for that purpose? For which purpose it is used then? If it used for one time investment only such as motor bike, radio, television then restrict them and make a condition that credit will be only given for income generating purpose. This amount cannot be used for any other purpose. For this purpose certificate should be signed that “I will use this amount for this purpose” and at the time when the customer is returning loan he has to show its receipt which will prove that credit is used for the purpose it is taken. Micro credit can also play an important role in poverty alleviation in the form of community. For example there are two houses. They collectively take loan and distribute duties. Let’s say they purchase hen and decides to sell eggs. Now, one house takes responsibility of marketing and other house takes responsibility of selling. And they share profit and collectively return loan. Beggars are also major part of Pakistan’s population which is totally ignored to become an effective part of the society. Micro credit institutions should also recruit beggars as their customers and turn them into a sales force. They can offer small interest free loans of about $12 which beggars can use to purchase “cookies or toys” which can be sold. The loan can be paid back at anytime. In this way micro credit institution can play an important role in poverty alleviation and making people able to earn for their family.