Friday, May 30, 2008

Dependency! Is Micro-credit an Answer?




Dependency! Is Micro-credit an Answer?

This is a well read paper from FARMS that ranks sixth currently in Google under "christian microcredit".

Thursday, May 22, 2008

Local Ownership Through Micro-Credit

Local Ownership Through Micro-Credit
Tips on Micro-economic Development
Farms International


My first exposure to abject poverty was while serving as a U.S. Peace Corps volunteer in the Philippines. My wife, Pat, and I served there from 1971-1973. Surprisingly, it was through this U.S. Government program that we learned the basics of how to avoid dependency! "What they saw is what they got"the volunteer. Peace Corps trainers instilled in us that real lasting relationships are made when you give only yourself away.

We came with our zeal, two suitcases and some knowledge, but no project money, building funds, equipment or commodities to give away. To be sure, it was frustrating at times not having the resources to do the job the "American way," but the friendships and respect gained were very real.

During our second year of Peace Corps service, God used the overwhelming hopelessness of the poverty we saw to convict us of our own lack of love for the poor! Our experiences ingrained in us a desire to help those in poverty find a dignified way out of it.

In 1984, we returned to the Philippines to do pioneer church planting among the Igorot tribes of the Central Cordillera range of northern Luzon. Because of government abuse and neglect, these tribal people were fertile ground for an on-going communist insurgency. This insurgency was rife with promises to liberate the poor. The communists saw Christianity as a threat to the spread of their atheistic dogma. This ever-present danger, coupled with poverty because of government abuse and neglect, made life very difficult for these early converts. We came into this situation with no building funds, salaries, or program funds. What we did bring was a micro-credit program sponsored by FARMS International.

Micro-credit was new to me then, although FARMS had a history of micro-credit dating back to its 1973 inaugural program in Sri Lanka. I was not at all sure how this loan program would complement our church-planting ministry. I was a bit skeptical, but the believers in the area looked upon it as an answer to prayer. They were a very industrious people. What was lacking was readily available capital to establish productive cash-crop farming, animal raising, or home-based enterprises.

We served there for eight very exciting years and saw much accomplished. Our philosophy of missionary practice was to do nothing for those we served that they could do for themselves. This was very liberating for them as well as for us.

Dependency is the result of "doing good" that is "not good."

We initiated the FARMS micro-credit loan program early on in our ministry. The results were truly encouraging. The community acknowledged that we were really helping the poor.

Each loan recipient tithed and gave offerings from their project profits. Because of this, a self-supporting church naturally emerged. Eventually, a substantial church building was erected with no foreign funding whatsoever a first in those mountains. Jabbok Bible Church earned a reputation as a giving church, reaching far beyond its own congregation with many acts of charity. They had learned the joy of giving. God provided in many ways to meet the needs of these new believers. Most have built nice homes and have experienced many blessings in their lives. The church's outreach and influence continues today without any outside funding. Their church is truly God–reliant.

Since 1993, I have served as the Executive Director for FARMS International. This year we are celebrating 39 years of ministry with eleven programs in eight countries.

God's Blueprint

Scripture has a considerable emphasis on the poor, revealing for us God's heart for the poor. Hundreds of scriptures in both the Old and New Testaments admonish the believer to "consider the poor," to "do good" to the poor, to "plead the cause" of the poor, to "lend to the poor" and to help the poor out of his poverty!

God outlines his blueprint to prevent perpetual poverty in Deuteronomy 15:1-11. As we read these verses, we find that loaning to help the poor regain economic security was central to God's original formula. God even pronounces a blessing, a tangible blessing, encompassing all of life to those who "regard the poor." Psalms 41:1

The New Testament, which is the foundation of the Western work ethic, is rich in references, honoring and encouraging work (1 Thess. 4: 11,12 Eph. 4:28).

The key to releasing those in poverty is work that uses God-given talents and resources to create wealth. Then people can meet their own needs and those of others. This is in sharp contrast to consuming someones charity.

The guiding principle of FARMS International is the scripture, "As we have therefore opportunity, let us do good unto all men, especially unto them who are of the household of faith" (Gal. 6:10).

Dependency is the result of "doing good" that is "not good." Self-reliance is the result of "doing good" that "is good." There is a great gulf between these competing ideas.

Can micro-credit be used to minimize the dependency syndrome? I believe the answer is yes. When strictly Biblical principles are used to guide a micro-credit program, dependency is not a problem and a healthy reliance on God is the result.

Micro-credit is an opportunity for those with wealth to meaningfully supply the "necessity of the saints," while not fueling dependency.

While keeping in mind that families are key to development, it is also important to note that the poor need not be dependent. They can, in fact, flourish when given the opportunity to use their God-given talents and gifts.

Working with one's hands to have something to give to others is liberating. Here are a few of the key benefits of micro-credit:

1. Helps to maintain the Biblical family order, in actuality keeping families together.

2. Impacts the rural as well as the urban poor.

3. Breaks the usurious money lenders hold on the poor.

4. Multiplies "thanksgiving unto God" (2 Cor: 9:12).

5. Generates prayer for those who give to support the program, thus connecting the Body of Christ in a healthy way. "And by their prayer for you, which long after you for the exceeding grace of God in you" (2 Cor.9:14).

6. Promotes an indigenous vision to help their own people.

7. Encourages true local ownership and decision-making.

An Effective Tool

I believe when used correctly and with a strong Biblical emphasis, micro-credit is an effective tool in building up a God-reliant church. I would strongly recommend a micro-credit program be instituted early on in any church planting effort to get Christians firmly established economically. The emphasis from the start should be on indigenous support of the church, its pastors, evangelists, outreach, benevolence and building programs. If we are coming alongside an established work, great emphasis should be placed on teaching the proper Biblical view of stewardship.

As Westerners, we take bank credit for granted. We use it nearly every day of our lives. Therefore, it is not too difficult to imagine the hardships our brethren experience in places where credit is not available or comes with crippling usury. It is therefore easy to endorse the micro-credit approach. In addition, it is gratifying to see our mission dollars, that are invested in revolving micro-credit, keep on working! This approach to helping the poor not only produces wealth but it also generates tithes and offerings promoting self-supported and God-reliant congregations with longevity.

A Short List of Keys for an Effective Micro-Credit Program

· Requests to establish a micro-credit program should come from established mission agencies, missionaries and indigenous organizations.

· In order to ensure a working relationship, principles of operation need to be clearly laid out and agreed to by the cooperating agency or missionary.

· Development without Christian conversion is futile at best.

· Family development is preferred to most forms of community development, because the family has a vested interest to succeed. They are also best at identifying their real needs and will work hard to meet them.

· The head of the home is the preferred recipient of a loan. The Biblical model of family is thus preserved and strengthened.

· Family discipleship, especially in Biblical stewardship, is key to the success of the project. Money is a heart issue. It is not surprising, then, that the loan program is an open door to effective discipleship.

· Tithing of project profits cannot be overemphasized as a key to successful micro-credit programs. Tithing must be taught as an act of thankfulness and obedience for the blessings of God. Once this habit is established it releases the individual to a lifestyle of generous giving and experiencing the blessing of God.

· Giving is key to breaking the cycle of poverty. The project holder not only provides for his own needs but also becomes a blessing to others. This truly builds self-worth and breaks the poverty mentality.

· Project candidates must have local church endorsement. This ensures that the committee is helping those with a proven Christian commitment and a real need.

· Loan distributions should be clustered to maximize the impact of the generated tithing on individual churches. The goal is family as well as church enablement.

· A service fee set by the committee of 5-10 percent of the loan's face value helps pay administration costs as well as forming a buffer against bad debt and devaluation that decrease the revolving fund.

· We receive no government funding. This policy permits total freedom to share the Gospel as well as to target the Church of Jesus Christ.

· Programs that incorporate regular meetings of project holders, including the sharing of testimonies, ideas, continued Biblical and technical training, are the most successful. Real program ownership and community result.

· Committees can cost-effectively provide technical training from in-country resources that benefit project holders and the community as well.

· Project size must be large enough to maintain capital for continuation of the project. Personal savings accounts are key to long-term economic stability.

Joseph Richter is the executive director of FARMS International, Inc.
E-mail: info@farmsinternational.com
http://www.farmsinternational.com

For more info on avoiding dependency: World Mission Associates, 825 Darby Lane, Lancaster, PA 17601-2009 USA. Phone: (717) 898-2281, FAX: (717) 898-3993, E-mail: GlennSchwartz@msn.com Web: www.wmausa.org.

Thursday, May 15, 2008

The FARMS International Board


Our spring board meeting took place in Illinois this spring. We are thankful for such a dedicated board. From left: Nathan McLaughlin, Pastor Chris Hess, Jeff Boshart, Dr. Bryan Duncan, Joe Richter, Gary Wiebe, William Johnson, Dr. Will Salo and missing is Dr. Tom Chesnutt.

Share our new FARMS blog with family and friends.

"Doing Good That Is Good" touches the poor and persecuted church. We can not forget their sacrifice. Christ too was put to the test and we came out the winner. FARMS has seen the goodness of God multiplied to his people through the work of FARMS. What a great blessing!

Wednesday, May 7, 2008

Top US diplomat in Myanmar says death toll from cyclone, aftermath may reach 100,000

YANGON, Myanmar - Bodies floated in flood waters and survivors tried to reach dry ground on boats using blankets as sails, while the top U.S. diplomat in Myanmar said Wednesday that the toll from the cyclone and its aftermath may reach 100,000.

Hungry crowds stormed the few shops that opened in the country's stricken Irrawaddy delta, sparking fist fights, according to Paul Risley, a spokesman for the U.N. World Food Program in neighboring Thailand.

Shari Villarosa, who heads the U.S. Embassy in Myanmar, said food and water are running short in the delta area and called the situation there "increasingly horrendous."

"There is a very real risk of disease outbreaks as long as this continues," Villarosa told reporters. The death toll could hit or exceed 100,000 as humanitarian conditions worsen, she said.

State media in Myanmar, also known as Burma, reported that nearly 23,000 people died when Cyclone Nargis blasted the country's western coast on Saturday and more than 42,000 others were missing.

U.N. humanitarian chief John Holmes said Thursday that the cyclone's death toll may rise "very significantly."

The military junta normally restricts the access of foreign officials and organizations to the country, and aid groups were struggling to deliver relief goods.

Internal U.N. documents obtained by The Associated Press showed growing frustrations at foot-dragging by the junta, which has kept the impoverished nation isolated for five decades to maintain its iron-fisted control.

"Visas are still a problem. It is not clear when it will be sorted out," according to the minutes of a meeting of the U.N. task force coordinating relief for Myanmar in Bangkok, Thailand on Wednesday.

U.N. Secretary-General Ban Ki-moon urged Myanmar's government to speed up the arrival of aid workers and relief supplies "in every way possible."

State television in military-ruled Myanmar, though, said that the government would accept aid from any country and that help had arrived Wednesday from Japan, Bangladesh, Laos, Thailand, China, India and Singapore.

Local aid workers started distributing water purification tablets, mosquito nets, plastic sheeting and basic medical supplies.

But heavily flooded areas were accessible only by boat, with helicopters unable to deliver relief supplies there, said Richard Horsey, Bangkok-based spokesman for the U.N. Office for the Coordination of Humanitarian Aid.

"Most urgent need is food and water," said Andrew Kirkwood, head of Save the Children in Yangon. "Many people are getting sick. The whole place is under salt water and there is nothing to drink. They can't use tablets to purify salt water," he said.

Save the Children distributed food, plastic sheeting, cooking utensils and chlorine tablets to 230,000 people in Yangon area. Trucks were sent to the delta on Wednesday, carrying rice, salt, sugar and tarpaulin.

A Yangon resident who returned home from the area said people are drinking coconut water because of lack of safe drinking water. He said many people were on boats using blankets as sails.

Local aid groups were distributing rice porridge, which people were collecting in dirty plastic shopping bags. He spoke on condition of anonymity because he feared getting into trouble with authorities for talking to a foreign news agency.

Elisabeth Byrs, a spokeswoman for U.N. relief efforts in Geneva, said the U.N. received permission to send nonfood supplies and that a cargo plane was being loaded in Brindisi, Italy, but it might be two days before it leaves.

The U.N. is trying to get permission for its experts to accompany the shipment, Byrs said. She said U.N. staff in Thailand were also awaiting visas so they could enter Myanmar to assess the damage.

Some aid workers have told the AP that the government wants the aid to be distributed by relief workers already in place, rather than through foreign staff brought into the country.

Relief teams and aid material are waiting to deploy from Thailand, Singapore, Italy, France, Sweden, Britain, South Korea, Australia, Israel, U.S., Poland and Japan, according to minutes from a U.N. relief meeting in Geneva that were obtained by the AP.

However, Myanmar state-run television said Wednesday that Japan had sent tents, while planes from Bangladesh and India brought medicine and clothing. China sent 1,300 pounds of dried bacon, while Thailand sent 1.2 million packets of noodles.

Britain has offered about $9.8 million to help the crisis, and the U.S. offered more than $3 million in aid. President Bush said Washington was prepared to use the U.S. Navy to help search for the dead and missing.

However, the Myanmar military, which regularly accuses the United States of trying to subvert its rule, was unlikely to accept U.S. military presence in its territory.

The U.S. military started positioning people and equipment as it awaited word from Myanmar's government. An Air Force C-130 cargo plane landed in Thailand and another was on the way, Air Force spokeswoman Megan Orton said Wednesday morning at the Pentagon.

"When they accept, or if they accept — and we know what supplies they need — those planes will be there to transport those," she said.

The Navy also has three ships participating in an exercise in the Gulf of Thailand that could help in any relief effort — the USS Essex, the USS Juneau and the USS Harper's Ferry — but Navy officials said they are still in a holding pattern.

The Essex is an amphibious assault ship with 23 helicopters aboard, including 19 that are capable of lifting cargo from ship to shore, as well as more than 1,500 Marines.

Because it would take the Essex more than four days to get into position for the relief effort, the Navy is considering sending some of its helicopters ahead, according to an official who spoke on condition of anonymity because it was still in the planning stages. The aircraft would be able to arrive in a matter of hours, and the Essex could follow, he said.

In Yangon, many angry residents say they were given vague and incorrect information about the approaching storm and no instructions on how to cope when it struck.

Officials in India said they had warned Myanmar that Cyclone Nargis was headed for the country two days before it made landfall there.

The state-run Indian Meteorological Department had been keeping a close watch on the depression in the Bay of Bengal since it was first spotted on April 28 and sent regular updates to all the countries in its path, department spokesman B. P. Yadav said.

Myanmar told the World Meteorological Organization in Geneva that it warned people in newspapers, television and radio broadcasts of the impending storm, said Dieter Schiessl, director of the WMO's disaster risk reduction unit.

State television news quoted Yangon official Gen. Tha Aye on Wednesday as reassuring people that the situation was "returning to normal."

But city residents faced new challenges as markets doubled prices of rice, charcoal and bottled water.

At a market in the suburb of Kyimyindaing, a fish monger shouted to shoppers: "Come, come the fish is very fresh." But an angry woman snapped back: "Even if the fish is fresh, I have no water to cook it!"

Electricity was restored in a small portion of Yangon but most city residents, who rely on wells with electric pumps, had no water. Vendors sold bottled water at more than double the normal price. Price of rice and cooking oil also skyrocketed.

The cyclone came a week before a key referendum on a proposed constitution backed by the junta.

State radio said Saturday's vote would be delayed until May 24 in 40 of 45 townships in the Yangon area and seven in the Irrawaddy delta. But it indicated the balloting would proceed in other areas as scheduled.

A top U.S. envoy to Southeast Asia said Wednesday that Myanmar's military junta should be focusing all its efforts on helping victims of a devastating cyclone, not pressing forward with a planned constitutional referendum.

"It's a huge crisis and it just seems odd to me that the government would go ahead with the referendum in this circumstance," said Scot Marciel, who was appointed last week as the first U.S. ambassador to the Association of Southeast Asian Nations.

Myanmar has been under military rule since 1962. Its government has been widely criticized for suppressing pro-democracy parties such as the one led by Aung San Suu Kyi, a Nobel Peace Prize laureate who has been under house arrest for more than 12 of the past 18 years.

At least 31 people were killed and thousands more were detained in September when the military cracked down on peaceful protests led by Buddhist monks and democracy advocates.

Thursday, May 1, 2008

MSNBC: A food crisis getting worse.....not better!

PORT-AU-PRINCE, Haiti - It was lunchtime in one of Haiti's worst slums and Charlene Dumas was eating mud.

With food prices rising, Haiti's poorest can't afford even a daily plate of rice, and some take desperate measures to fill their bellies.

Charlene, 16 with a 1-month-old son, has come to rely on a traditional Haitian remedy for hunger pangs: cookies made of dried yellow dirt from the country's central plateau.

The mud has long been prized by pregnant women and children here as an antacid and source of calcium. But in places like Cite Soleil, the oceanside slum where Charlene shares a two-room house with her baby, five siblings and two unemployed parents, cookies made of dirt, salt and vegetable shortening have become a regular meal.

"When my mother does not cook anything, I have to eat them three times a day," Dumas said. Her baby, named Woodson, lay still across her lap, looking even thinner than the 6 pounds, 3 ounces he weighed at birth.

Though she likes their buttery, salty taste, Charlene said the cookies also give her stomach pains. "When I nurse, the baby sometimes seems colicky too," she said.

States of emergency

Food prices around the world have spiked because of higher oil prices, needed for fertilizer, irrigation and transportation. Prices for basic ingredients such as corn and wheat are also up sharply, and the increasing global demand for biofuels is pressuring food markets as well.

The problem is particularly dire in the Caribbean, where island nations depend on imports and food prices are up 40 percent in places.

The global price hikes, together with floods and crop damage from the 2007 hurricane season, prompted the U.N. Food and Agriculture Agency to declare states of emergency in Haiti and several other Caribbean countries.

Caribbean leaders held an emergency summit in December to discuss cutting food taxes and creating large regional farms to reduce dependence on imports.

Dirt cookies become bargains

At the market in the La Saline slum, two cups of rice now sell for 60 cents, up 10 cents from December and 50 percent from a year ago. Beans, condensed milk and fruit have gone up at a similar rate, and even the price of the edible clay has risen over the past year by almost $1.50. Dirt to make 100 cookies now costs $5, the cookie makers say.

Still, at about 5 cents apiece, the cookies are a bargain compared to food staples. About 80 percent of people in Haiti live on less than $2 a day and a tiny elite controls the economy.

Merchants truck the dirt from the central town of Hinche to the La Saline market, a maze of tables of vegetables and meat swarming with flies. Women buy the dirt, then process it into mud cookies in places such as Fort Dimanche, a nearby shanty town.

Carrying buckets of dirt and water up ladders to the roof of the former prison for which the slum is named, they strain out rocks and clumps on a sheet, and stir in shortening and salt. Then they pat the mixture into mud cookies and leave them to dry under the scorching sun.

The finished cookies are carried in buckets to markets or sold on the streets.

An unpleasant taste

A reporter sampling a cookie found that it had a smooth consistency and sucked all the moisture out of the mouth as soon as it touched the tongue. For hours, an unpleasant taste of dirt lingered.

Assessments of the health effects are mixed. Dirt can contain deadly parasites or toxins, but it can also strengthen the immunity of fetuses in the womb to certain diseases, said Gerald N. Callahan, an immunology professor at Colorado State University who has studied geophagy, the scientific name for dirt-eating.

Haitian doctors say depending on the cookies for sustenance risks malnutrition.

"Trust me, if I see someone eating those cookies, I will discourage it," said Dr. Gabriel Thimothee, executive director of Haiti's health ministry.

Marie Noel, 40, sells the cookies in a market to provide for her seven children. Her family also eats them.

"I'm hoping one day I'll have enough food to eat, so I can stop eating these," she said. "I know it's not good for me."