LAHORE: Addressing poverty through microcredit alone will not yield the desired results unless poor communities are mobilised to address the underlying factors that perpetuate deprivation.
Providing small microfinance loans may partially alleviate hunger-related poverty but will have little impact on other dimensions of human suffering associated with the condition. Amid persistently high prices, even income generated through microfinance is often insufficient to bridge the resource gap created by food inflation.
Planners must allocate more resources to skills training in order to enhance income-generating potential among the poor. Poverty is a socio-economic curse that deprives individuals of food, shelter, education, healthcare, sanitation, clean drinking water and dignity. Food is not the only need; health issues, which require ongoing treatment, are often a greater burden for the poor.
Philanthropists have attempted to help by providing regular dialysis for kidney patients, but demand far exceeds capacity, and free dialysis facilities remain limited. The government lacks the resources to fully support expensive treatments such as dialysis, open-heart surgery and cancer care, which remain out of reach for most impoverished families.
Microfinance penetration in Pakistan is significantly lower than in Bangladesh or India, and is largely concentrated in major cities. The recent peak in food inflation has eroded the capacity of many microcredit recipients to service their loans. While inflation has since eased, food prices continue to rise, albeit more slowly.
Planners must recognise that poverty reduction strategies should enable people to live without shame. Emphasis must be placed on dignity, respect, and freedom from humiliation. The poor require empowerment that gives them the ability to pursue goals they value and have reason to value.
A comprehensive approach should ensure physical safety -- both protection of person and property -- and address the perception of insecurity, which disproportionately affects the poor.“Microfinance is the most widely recommended poverty alleviation tool in Pakistan. But microcredit is more effective in urban centres or in rural areas where basic civic amenities exist,” he said. “The ability of the poor to earn a decent living is severely constrained in localities lacking essentials such as proper sanitation, clean drinking water and passable streets. Many rural areas continue to face these challenges, making it nearly impossible to establish health and education facilities in such environments.”
The Benazir Income Support Programme may provide temporary relief -- perhaps a week’s worth of food -- but does not address the family’s needs for the remainder of the month. What people need are jobs -- yet employment opportunities in the country are diminishing.There is an urgent need to create jobs in low-investment, high-employment sectors such as the apparel industry.
