Microcredit projects can be complicated and long-lived, and the details vary by culture and government. Effective projects often involve partnering with MFI’s (MicroFinance Institutions) that have developed best practices and field resources in the target country. During the early 1990’s, RI and TRF have modified their approach to revolving loan grants as a result of many lessons learned. However at this time there is limited practical information readily available for those wishing to start new banks.
The biggest problem in offering such a help is how people misuse it. Many need genuine help, while many are just lazy and want the easy way out they use such charity organizations to get what they want and don’t keep up their end of the bargain. They will become part of the program agreeing to all the terms and conditions. When the product or money reaches their hand, they change back to their old ways and the effort goes waste. Rotary has accepted that not every needy person can be helped or made to see the world in a different hiue.
Where this poses a problem to an institution like Rotary is, the people who are recognized as the ones who need help, may actually not be. many Rotarians want their projects to be approved and take the credit for bringing int his project or idea and being the main reason for this section of people being helped. As a result of this need, people just bring in anything they see. There is no proper research or analysis that is carried out to see if these people really need the help proposed.
As a result, a lot of funds are wasted on unnecessary projects and when the donors see how their money has been wasted, they refuse to come forward the next time. This creates a major setback because finding a good donor is not an easy task. Though all members are required to donate towards projects, it is these donors who contribute the major part and make the project a success. These are people with money and a big heart who want to set some money aside for charity and not just to invest in Fincrowd App and earn more.
There are many sections of people who are just waiting to be “found” by the charity organizations and given help, so that they can have the easy way out. Though Rotary does not give just money but tries to improve th entire lifestyle by helping the needy learn and practice a skill, many don’t do it. If a sewing machine is bought, with the intention of helping the mother sew and sell clothes, to earn a living, the mother might sell the machine for a low price because she wants money immediately. This will bring her back to the streets, moneyless, skill less and no future, for both her and the kids.
Another problem faced with partnering with such micro credit institutions is they are not
That is why we have formed the Rotarian Action Group for Microcredit (RAGM). We’re here to help Rotary clubs around the world launch more microcredit projects, easier and faster, with measurable results, and in a way that capitalizes on Rotary’s unique strengths!
- A Rotarian Action Group is a voluntary association of Rotarians formed for the purpose of conducting international service projects that advance the object of Rotary.
- RAGM application filed December 2006, approved February 2007
- RAGM will identify key Rotarians in each of Rotary’s 529 districts, promoting Microcredit Best Practices.
- RAGM will provide information, train and/or coach Rotarians on how to establish successful Microcredit projects and partner with international Micro Finance Institutions (MFIs)
Membership is available to Rotarians. Non-Rotarians are invited to participate as partners.