A recent ProPublica investigation underscored the unfortunate impact of abrupt U.S. foreign aid
withdrawals in Africa. In the case of the administration’s decision to cut funding to the United Nations World Food Programme (WFP), food rations for those without adequate access to nutrition was reduced by a third. Without adequate food, there has been surge in criminal activity, sexual violence, and human trafficking. U.S. embassy officials reported these impacts to the State Department, so there’s no mystery about the destabilizing effects of the aid cuts.
This situation is a jarring reminder of the razor’s edge that many developing world poor people
find themselves on. One of the most consistent criticisms of aid has been the dependency that it breeds. In addition, when aid is cut without an alternative provided, real people suffer.
Microfinance initiatives have emerged as a attractive alternative to reductions in
aid. Organizations like Worldwise Microfinance provide small loans and support primarily to
women, enabling them to start and grow businesses. Microfinance groups have catalyzed
entrepreneurship and offered hope, allowing very poor women and their families to better
withstand economic shocks.
Microfinance is not a solution to every example of extreme poverty in the world. But it offers a
sustainable path to economic empowerment, especially for women who otherwise lack access
to capital. By fostering self-reliance and resilience, microfinance can cushion the blow when aid
is cut, and contribute to long-term stability.
Please consider supporting Worldwise Microfinance today.