There has always been poverty, but there has never before been such an increasing global poverty pandemic. 1.4 Billion people are barely surviving on less than $1.25 per day. Over 3 Billion people survive on less than $2.50 per day. Today you will read this webpage, learn about the Banded Yoke, and make a decision whether or not to get involved. Nearly 30,000 children will die today, from starvation due to poverty, without a choice.
There has always been poverty, and there have always been those who fought to reduce it. Entire nation states began to recognize the growing global poverty epidemic and organized concerted efforts to alleviate the problem as early as the 1930′s. In 1964 the official War on Poverty began. Introduced by the United States of America, under the direction of President Lyndon B. Johnson, this formal effort, with the participation of multiple nation states, has poured much into the cause. So how are we doing?
Africa can serve as a large-scale example of the problem. In the last fifty years, the continent has received (over) $1 trillion in benevolent aid. How effective has this aid been? Country by country, Africans are far worse off today than they were a half a century ago. Overall per-capita income is lower today than in the 1970′s. Over half of Africa’s 700 million population lives on less than $1 a day. (Page 3, Toxic Charity, Robert D. Lupton)
The truth is, most of the concerted effort to fight global poverty is failing. There are numerous reasons why this is true. Countless books and research documents are emerging to address this fact such as the following:
- The White Man’s Burden – by William Easterly
- Dead Aid – by Dambisa Moyo
- Poor Economics – by Abhijit V. Banerjee
- Toxic Charity – by Robert D. Lupton
However, there is a glimmer of a silver lining emerging on this otherwise ominous cloud. In the 1970′s a pioneering microfinance movement began with the work of Dr. Mohammad Yunus, an Economics professor in Bangladesh, when he began experimenting with lending to poor women in the village of Jobra. His work led to the foundation of Grameen Bank, a Nobel Peace Prize in 2006, and the entire modern microfinance industry throughout the globe. In effect Dr. Yunus taught the world how to “teach a man to fish” and revolutionized the global War on Poverty with astounding affect.
Microfinance is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services. It is also the idea that low-income individuals are capable of lifting themselves out of poverty if given access to financial services.
A study was commissioned by the Small Industries Development Bank of India, an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises in India. It showed that borrowers benefitted significantly from microfinance. Amongst the findings were that 76% were able to increase their income through MFI assistance, 66% improved their food consumption, 56% could improve their housing conditions and 77% could provide better educational facilities. (Microfinance in India – by Jitin Mitra)
Here at the Banded Yoke, we fully embrace the concept of microfinance. We believe the most effective, and most charitable form of giving is one that empowers, enables, and creates self-worth, dignity, and self-sustenance. However, we see a fatal flaw in the overall modern microfinance movement. While we must agree, at the individual (micro) level, the practice appears to alleviate poverty, we do not see the evidence on a regional (macro) level. As purported in the book Poor Economics (by Abhijit V. Banerjee), there is overwhelming evidence to support the fact that nations, regions, even village economies are not improving as a whole.
We love and support the effort of modern microfinance organizations, especially the work of organizations such as Kiva.org and others. We applaud the affect they are having and the individual lives they are changing. However, we feel there is a need for a branch in the modern microfinance tree that is capable of affecting entire village, region, and even national economies.
Before we propose our opportunity, let’s look at the current practice of microfinance in its modern form. Most commonly an individual or small group of individuals will approach a microlender with a plan. This plan is a blueprint for how they will utilize the funds to improve on an existing micro-business, or create one. Many times it is a local artisan (such as a basket weaver) who needs supplies to produce more goods or a local farmer who needs equipment, seeds, or fertilizer to produce more crops. In almost every situation it is an extremely small loan given to an extremely small business that employs fewer than 3 members of a family or neighborhood.
In essence, modern microfinance enables extremely small businesses to provide an extremely small improvement for an extremely small group of people. Almost every time, these small businesses are dependent upon a local depressed economy, many times consisting primarily of other people living in extreme poverty. Almost every time, these small businesses are at the mercy of regional and national instability. Kiva.org lists regional and national economic factors, political instability, and even natural calamity as real risk-factors their borrowers face on a regular basis.
Here at the Banded Yoke, we hope to change this. We have created a plan to empower individuals to create a sustainable business that is dependent upon a global economy. We have devised a method to create never before imagined opportunity through mentoring, funding, and the incredible support of a global network of Internet businesses. Our vision is to bring outside trade, information, and technology to the world of those in poverty. Our vision is to enable individuals to establish a competitive business that thrives on global trade and is not dependent upon a local currency, local economy, local political situation, or local natural climate.
For only $100 we can empower an individual who is struggling to make ends meet, or even to survive, with a business that taps the exact same revenue source that fuels businesses such as Google™, Facebook™, Yahoo™ and many others. We can provide a hand-up that empowers individuals to break the chains of poverty and bring their families and villages into the modern world. We can create real, sustainable change.
We are in the final stages of capitalization and preparation. Very soon the Banded Yoke will launch a revolutionary tool to further the War on Poverty. We are currently perfecting our methods with several test cases throughout the world. Our success rate is high, but our ability to impact numerous people groups is limited. We need your help. We need donations and volunteers. Please consider a small donation to help us launch this program. Every single dollar makes a HUGE impact. Please consider working or volunteering with us. Please feel free to contact us and learn how you can help us see this vision become reality. Together, we can alleviate global poverty.