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 writerFarhat 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 .