The author of this article states that MFIs that do not focus on the health and education needs of their clients are providing an incomplete solution. By combining health services, education, and financial services, MFIs can have a better impact on poverty alleviation. Poverty is multi-dimensional and includes a lack of income, but also lack of access to health care, education, and civic participation. In addition, an MFI’s financial sustainability can be impacted if many clients are affected by HIV/AIDS, for example.
The author lists four reasons for MFIs to incorporate health programs:
- to provide a more comprehensive solution (address non-financial needs);
- to improve upon MFI sustainability and performance (defaults, loan loss);
- to take advantage of their access to poor individuals and group-based delivery systems to facilitate educational sessions
- to allow MFIs in competitive areas to differentiate their products.
Three different strategies for linking MFIs and health are detailed. They include linked, parallel, and unified service delivery. The example of the unified program of Credit with Education (Freedom from Hunger) is given.
Length: 14 pages
Type of file: PDF
Creator:
C.G. Ohri
Contributor:
Economic Self-Reliance Conference, Brigham Young University
Date:
2003
Remote Resource:
