Microfinance industry in the search of

target customer
By; Farhat Abbas Shah

Some times we have only dreams and suppose that we have

a clear concept about our vision and mission. We consciously or
unconsciously neglect the difference between the dream and
concept. Although it is the spontaneity of the nature that
demolishes our plan much time, we call it external risks and try to
minimize them but we don’t come out of this wishful thinking.
The experts of microfinance industry have conducted so many
researches and designed different modules for poverty alleviation
but they are still not in the position to understand the ground
realities witch are being faced by the poor.
Actually there is a huge conflict between any desire of poverty
alleviation and a strong wish for continuous growth of profitability.
In developing countries there are many reasons of poverty.
According a research conducted by a microfinance institute of
Pakistan the main causes of poverty in Pakistan are lack of
intention of the governments to even minimize poverty, instable
political system and feudal structure of the country. There is a
myth in Pakistan that the rich is becoming richer and poor is
becoming poorer. The experience or wisdom behind this myth is
that the sources and resources are always remain in the hands of
rich people and as well as in the clutches of opportunists. Even at
low level when an oppressed gets money by any mean, he or she
him or her self becomes also an exploiter. The other aspect of this
tragic scene is the uneven distribution of economic opportunities.
As a human being even the poorest has also the equal rights to live
with respect and dignity. There should be surety of fulfillment of
his basic needs. About this there is an impression in the
microfinance market that the microfinance providers are tactfully
avoiding by their actual responsibility and continuously trying to
set such type of definition which align their financial mission. The
donors and the microfinance providers are of the opinion that the
sustainability is the most prior only. However the perspective of
the poor or client is also not less important than any other aspect.
Some other experts consider only entrepreneurs as target clients
who have already a reasonable business.
Here lies a question whether the poorest who is not the real
client of microfinance can contribute any productivity to
commercialization or not?
The poorest also has at least natural capabilities of productivity,
which requires to be explored according to the micro finance
scenario of the day. Although the human being has already proved
his multidimensional productivity even in the stone ages. It is true
that the quality and quantity of productivity varies person to person
but it can not be even think that the poorest is totally non
productive. Actually this is the real social responsibility to reach at
the line of the productivity of the poorest; otherwise all the
industry is only beating about the bush in the perspective of
poverty alleviation.
The confusion of target client is the main cause of making
microfinance detract because the industry is claiming about
poverty alleviation but changing its direction, whereas the poorest
can be a man power at least if one could organize and direct. It is
true in the third world countries like Pakistan mostly government
could never prove their sincerity to the poor to give them minimum
fundamental rights. Government remain fail to carry out their
minimum basic needs. Now it is the social responsibility of
corporate sector to motivate the authorities towards the vulnerable
communities of the society. The microfinance industry is the only
one system that has very strong and direct access to the poor and
poorest. Now it is a great opportunity to make it social cultural and
democratic sense. If microfinance industry ignores the poorest and
does not manage the situation it means the claim of poverty
alleviation is merely an airy slogan. We will have to also analyze
that how much microfinance industry has yet reduce the poverty in
the world during last forty and fifty years. It has to clarify that
whether microfinance industry is going to fulfill its real social
responsibility or it will focus on only profitability. There is another
question of possibility of targeting poorest with sustainability.
Whether the sustainability can be achieved by targeting the poorest
or not? In this contest the indirect targeting way can be adopt like
designing a product for those whose engage a particular number of
poorest with their businesses and secure their economy and put
them on way of productivity. The other modalities can be settled
after proper conceptualization and research. The world where
animals can play their productive role why not the human being
can contribute. Last but not the least point is that the nature is
sustaining the human being since the birth of first life but human
being is not ready to sustain him self without profitability.

About the writer

Farhat Abbas Shah is popular most poets of masses in Pakistan having 67
published books on his credit. He is also the member of pakistan
psychological association. He is a renowned anchor and broadcaster of
Radio and tv with well liked shows, recently working on microfinance as a
gross root expert .