Microfinance on the CS Monitor’s Ethical Investing Show
Laurent Belsie of the Christian Science Monitor produces a monthly show called Ethical Investing which I was recently made aware of. The show is available online and usually runs about 20 minutes. The most recent show took a look at microfinance as a viable investment opportunity which is why it popped up on my radar. The guests for the microfinance show were Scott Budde (managing director of social and community investing at TIAA-CREF) and Roy Jacobowitz (senior vice president of Accion International).
Laurent and his guests do a great job with the following:
- Explaining microfinance in simple terms.
- Talking about repayment rates.
- Discussing how people can get involved with microfinance as investors (although Kiva.org is not mentioned most likely since you can’t earn a return on top of your principal at this time).
One of the other key things about microfinance that was lightly touched on towards the end of the show was the expansion of microfinance from microcredit to microinsurance and other micro financial services. Thirty years into microfinance and a Nobel Peace Prize later we know microcredit works. It is now time to bring other financial services to the poor along with microcredit. Financial services should be considered a basic human right and we are getting closer every day to everyone having access to them.
In closing the group touches on the movement of microfinance from its non-profit/NGO roots to an emerging financial market. As long time readers know I am very much looking forward to seeing this change progress. As microfinance is treated more and more as a viable investment vehicle and a place where for-profit ventures can flourish more money will flow in, interest rates will continue to drop, innovation will thrive and more people will be able to help themselves out of poverty. This is, without a doubt, a very exciting time for microfinance.
