Micro-credit vs the FARMS approach
Micro-credit was hailed as a cure-all for poverty. Nevertheless, several recent studies have documented the true picture. Little evidence was found for the illusory claims of reducing poverty. In fact, studies have shown that instead of the poor being released from poverty, secular micro-credit programs have encumbered the poor with layers of debt! This horrendous outcome is not surprising to me. Why? Because the whole scheme was built on the backs of the poor. The poor pay for this help, by supporting those running the programs as well as funding the cost of their credit, enabling the financiers to become richer and richer. This unbiblical approach to poverty, funded by interest rates of 35% and above, is a travesty. One study reported that the poor paid over 21 billion dollars in micro-credit interest in 2012! But there is good news! FARMS International has a biblical approach to poverty. Local volunteers run our programs, so the cost is very low. Also, we do not charge interes...