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Micro financing

A survey carried out by an international group of experts has found serious deficiencies in the way micro-financing is carried out in Sri Lanka. The survey by AusAid and the German Technical Aid organisation (GTZ) closely examined the way funds from the government and international donors trickle down to the grassroots.

Micro-financing is a key tool in poverty alleviation and many developing countries have adopted various strategies to help the poorest of the poor improve their lot in this manner. Among our neighbours, India with Garibi Hatao and Bangladesh with Daal-Baath adopted programs aimed at uplifting the poor. 

At home, the Janasaviya programme as well as the current Samurdhi project have similar aims.Apart from immediately solving the problems of the poor these programmes also seek to provide a sustainable solution to the stubborn poverty issue.

The survey, which makes recommendations to both the government and the donor community found that the long-term sustainability of the micro-financing projects is a matter of concern. Another important finding is the politicisation of these projects, which the survey has found, blunts the overall effectiveness of these efforts.Most Sri Lankans unfortunately live below the poverty line. For this country to have social stability in the long run this persistent problem must be solved and all concerned must ensure the effectiveness of the poverty alleviation drive. 

Micro-financing is not the only way to ensure that there is economic well-being. Wide ranging economic reform and better macro-economic management to spur growth is also essential.However we have to face up to the reality that the government’s coffers are empty and there are no resources for the state to utilise to jump-start the economy. 

Nor is there money to fritter away on programmes that yield nothing. Whatever funds are available must be spent on programmes that attack the core issues causing poverty and ensure that there is sustainable development.But to ensure effectiveness of whatever funds are being used at present to lessen poverty there has to be a thorough streamlining of the system, according to the survey’s recommendations.One excellent suggestion from the report is that micro-financing be linked to enterprise development and business networks built up so that beneficiaries can optimise their resources. Another observation is that government should move away from the control of these programmes to avoid politicisation. 

There is also advise to the donor community to concentrate on longer-term projects in micro-financing.Although we often dismiss advise given by outsiders about our own projects, counsel such as this must be heeded. Many years of well-intentioned poverty alleviation programmes have not been entirely successful in tackling the problem and re-thinking is necessary. The policy makers must now take hard decisions to make the necessary changes and society needs to support them.

Press freedom

Sinha Ratnatunga, the Editor of the Sunday Times has been freed of charges by the Supreme Court in a landmark decision that warms the hearts of those who support the freedom of the Press. The learned Justices of the country’s highest court considered, among other things, the fact that the Criminal Defamation Law had been repealed when they took their decision.The freedom of the Press is a double-edged sword. 

While journalists must be free to write they must also act responsibly to ensure that while they serve society they do not trample upon the dignity of individuals.At the same time society must celebrate this decision by the Supreme Court because Press freedom means the fundamental right of all our citizens to exercise freedom of speech has been reasserted.So it is not only Ratnatunga who has been freed, but all of us.

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