Microfinance and Food Security Strategies
Sustainability is one of the major concerns of a country for continuity and
endurance. Especially in the developing nations, sustenance should be paid
more attention than anything else. Being independent from the neighboring
countries in the needs of the countrymen should be prioritized.
Food security directly refers to the social and economic stability of a
country. If food availability is enough, hoarding and panic buying is not present, it
clearly states that the country had enough to give its citizens decent meal and
goods they want to eat. And economic growth is connected on the behaviour of
availability in the market.
The government has the cardinal responsibility in ensuring its citizens
enough supply of food. Over the years, the government of Kenya is striving to
achieve national and household food security through various programs and
activities. Agricultural products are the staple food of Kenyans such as maize,
rice, wheat, beans, sweet potatoes together with traditional foods like sorghum,
cassava, arrow roots and yams. Production of these crops has increased in the
recent years but still with little success to provide for all its citizens. The 2007
Economic Review of Agriculture found out that 51 percent of Kenyans has
inadequate access to food. Thus, food security is directly linked to economic
state which the poverty rate is estimated at 47 percent nationally.
Kenya managed to provide enough for its people the staple grain of maize
for the last three years, but the importation of wheat and rice continued due to its
local low production. In 2008, Kenya faced a big challenge on food availability
due to short rains from the previous year, post-election violence, spread of
livestock disease and increasing cost of agricultural farming. Food deficit is
experienced nationwide and the production of crops is still declining.
In which case, the government has to take a big step in solving the food
availability problems. And microfinance is one of the solutions thought of for
alleviating poverty, provide employment and establish food security.
Finance, or simply the acquisition and utilization of money in a certain
establishment, is the very lifeblood of every enterprise. Microfinance is the
method of financial management used by small and medium-scale enterprises or
by micro entrepreneurs. Microfinance emerged in developing countries to give
opportunities to underprivileged citizens to have their own small business. It just
not alleviates their economic status but helps their human development as well.
Having a sense of self-worth is important for people to keep their value of
existence.
Micro lending is the process of advancing small loans to aspiring
entrepreneurs and existing small scale businessmen to give them enough
starting capital. In Kenya, microfinance starts to be the revolutionary movement
in helping the poor people to improve their household state. It is a country that is
largely agriculture-based on production and employment. The clients of micro
lending are usually having a business start-up or expanding existing micro
enterprises which are mostly women. Banks granting micro lending commonly
take title deeds from rural folklores that serve as collateral. However, lands in
rural communities are communally owned.
Small loans are usually used in agricultural activities. For instance, poor
villagers in Western Kenya get a jumpstart for basket and market weavers.
Moreover, rice farmers in Ahero or Mwea could increase the crop yielding and a
season harvest would make a difference not just for them but for the country as
well. Improving facilities of home-grown business like cementing it would also
make the output and revenue improve. Thus, micro lending granted to poor
villages could increase their household income and eventually help the family
members. Education could finally be afforded and children would be entitled to
health care. Empowering the citizens’ well-being as a whole and moving up to
the social ladder are the potential benefits of microfinance and micro lending.
However, experts noted that microfinance could be totally applicable to all
developing countries. The cost of agricultural inputs such as seeds, fertilizers and
equipments has continuously outpacing and a small loan couldn’t afford its
expansion. What’s really needed is subsidy from the government to cushion out
farmers if famines or natural calamities strike and destroy their crops.
Moreover, illiteracy and ignorance among poor people tends to be
exploited by loan firms. Lenders are ill-informed and eventually abused.
Microfinance has already established its effectiveness among other
countries. However, nations with different situations and circumstances could not
adopt microfinance because it tends to be useless and futile try. What’s really
needed in alleviating poverty is understanding the situation and possible
solutions with the assistance from the government and private institutions as
well.
References:
http://www.ovimagazine.com
http://microfinanceafrica.net
Kinyua, Joseph, Assuring Food and Nutrition Security in Africa by 2020: Prioritizing Action, Strengthening Actors and Facilittating Partnerships, April 2004
Credit:ivythesis.typepad.com
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