The group discussion that followed consisted mostly of remarks, concerns and comments from Busoga University students with a few FSD intern comments here and there with a question, clarification, or observation. My favorite clarification was the GESI intern who claimed that Uganda should not look to America's saving culture as an example, considering how America does not have a culture for saving... To which, our moderator commented, "So they aren't better than us... " I thought it was so hilarious.
Anyways, the conversation topic focused around closing the gap between microfinance institutions and the micro enterprises they offer services too. Enter the circular philosophical question; which comes first savings or financing? The hen or the egg? Several people claimed the financing comes first, in order to receive capital to begin saving regularly.
I disagree. From my experiences, (and according to many banks and MFI policies) members need to achieve a certain level of savings before taking out loans. At Marusacco, members can take loans up to three times that of their savings. In addition for providing the MFI with capital to access loans at a better rate, I think it trains members in long term business planning strategies. They need to learn how to assess risks and set goals for future growth. But I also do not claim that that is the only or right answer.
Cultural changes take time, and need to be decided by the people of said cultural community. Similarly, I do not think that asking short term American interns how we can address these challenges is very efficient or sustainable. Someone needs to lead the change - and a sustainable change for Uganda will come from Ugandans who accept responsibility, refuse corruption, and welcome the challenges and costs in pursuit of long term prosperity.
So wait why am I here again? Well, that is a philosophical train of jumbled thoughts for another blog.
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