Microfinance is dirty, dirty, dirty

So today I have decided I must confess to you all that microfinance is not some clean amazing answer to poverty. It is dirty, rough, nasty, and hard. I am not sure why, but I ingnorantly thought that the poor down here would be responsible honest people. And most are. As are most Americans. And microfinance is good. But it has its problems, and having been here for 6 weeks, I have certainly seen where those problems lie.

Example: Today was my third visit to a bank on the outskirts of Santiago. This was also the second time he had had to return in order to receive the payment. If the bank does not have the money in full, they must return at an agreed time to pay in full. If one peso is missing and no one can cover it, they cannot pay. Well, my first visit saw half of the members missing and us returning with the manager of the office the following week. They finally paid, though the meeting took forever and Helen (the manager) constantly reminded them of what they agreed to and the importance of adhereing to the standards set by Esperanza. Well apparently no one heard because this third meeting I was at was yet another meeting of Robert returning at a later date to collect money because the bank had failed to pay on time for a second meeting. And how many clients were there? 10 of 20. I suppose that is better than the 8 that were there from my first meeting? Threats flew and eventually the responsibility turned to me (which it should not have) where I was asked to sort of threaten the clients and use my position to enforce or intimidate the clients. It did work, but wasn't my role or responsibility. I felt horrible threatening these people, and though I was frustrated with these people's blatent disregard and disrespect, I kept thinking to myself, how much respect have they actually gotten over their lives?

The fact is that Westerners cannot stand when someone crosses us. If we are not given the respect we assume we deserve, we let it known to the world. But take it from the poor's perpsective. They did not ask to be born into a slum with no running water and unreliable electricity. They did not ask to have inadequate medical care or education standards. And yet the world has turned away ignoring their struggles. You might be quick to say, then it seems as though the moment Esperanza hands them their first loan, one of their first signs of respect, they would certainly behave better! No. And it is not as if they are acting like children or are cheats. No, I would say many are trying, but the reality is that they are humans and they are imperfect. Just as people cheat in the US, people cheat and lie here too.

Sure, 90, 99, or even 100% of microfinance loans are repaid. But the sweat and work that goes behind all that to get those loans repaid is certainly not reflected in such a number. And not to paint microfinance in a bad light. Rather, it is to have you all, as I have begun, to understand the hard work these men and women on both sides put in to find success with a $200 loan.