Friday, May 29, 2009

BRAC

I was hoping to hear some of the groups thoughts about the benefits (or maybe issues they had) with the BRAC group today; maybe about the future they see the organization have in the development of Uganda and its other client countries. I myself thought it is the most beneficial thing so far to the effort of sustainable development. I know a lot of won’t understand how they can meet their costs with a 1.8% monthly borrowing rate. Frankly I won’t try to explain that because I would never do it justice. I would just tell you to ask Korey. Though back to the program. What we saw today was the direct promotion of sustainable development. Many microfinance firms are criticized that they become no different than banks. The BRAC group though not only offers microfinance services but it offers such a large amount of hugely beneficial education programs; education programs that improve the ability of the clients to carry out their business. Not only does it provide the monetary capital for clients to further their business it provide them the intellectual capital as well. This establishment of sustainable businesses I believe is the most important factor in the success of the whole sustainable development effort. Currently you have the issue that because the people have so little money, most of the businesses are capstoned and can’t move beyond a rundown, family-run shack selling secondhand goods. As a result they are no new jobs created and no new money is made hence the 65% unemployment rate and 31% below the poverty line of $1 a day. Due to the lack of money a brain drain is created were in the really quality teachers and doctors leave the country where there services will be better compensated. But if you stimulate the economy you create a need for more jobs and more money to be spent equaling a decrease in the unemployment and poverty. Further a country whose people can afford to pay its educated will allow them a reason to stay and benefit the society with their services.

1 comment:

  1. Although I am not one of those great finance and marketing majors, I was able to understand enough about BRAC to really appreciate the work it was doing. The work that these people are doing is quite selfless, as they are paid relatively low wages in order to help their clients as much as possible.

    I would agree with Quint that microfinance is paramount to sustainable development in Uganda, as it creates a stop to the vicious cycles of poverty and relying on others. Organizations such as BRAC foster great independence, something Uganda is still lacking today. I hope BRAC continues to grow and spread its programs even further across the country.

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