Mi India Brochure.pub
Transcription
Mi India Brochure.pub
The need for social investment Proud to be Indian A daily struggle India is one of the fastest growing economies in the world. Many Indians, within and outside of their home country, are gaining recognition for their innovation, entrepreneurship and business expertise. Around the world, Indians are breaking new ground. Two square meals a day. A place to sleep at night. Hope for the future. Proud to be Indian? However, India is also home to the largest number of hungry people in the world today. Caste, gender and class discrimination, child labour, lack of access to education and unemployment continue to be harsh realities of life for millions of people in India. India is home to the largest number of poor people in the world, with over 900 million people living on less than US$2 a day. Source: United Nations Human Development Report For many Indians, these are simply out of reach. Without skills or an education, many Indians are faced with the challenge of supporting their families with little or no resources to draw upon. So what can we do? The sheer scale of poverty in India can seem overwhelming. How can we begin to make a difference to the lives of our fellow citizens? A social investment in a sustainable, scaleable poverty alleviation strategy will make a difference. A small amount of capital can unlock the greatest asset poor people possess: their entrepreneurial spirit. Through a social investment in Mi India, you can help give a hand up to thousands of fellow Indians. Page 1 The majority of Indians lack access to the mainstream banking services many of us take for granted. A small loan can enable a person living in poverty to start or expand a small business and work towards a brighter future for the next generation. Food security In India, 200 million men, women and children have little or no food each day. Thirteen Indian states have been classified as having alarming or extremely alarming levels of hunger. Overall, India ranked 66 out of 88 countries, worse than Sudan and only marginally better than Zimbabwe. India’s rates of child malnutrition are higher than most countries in SubSaharan Africa. These results are staggering and show that the need for poverty alleviation in India is immense, with women and children in need of immediate help. Source: International Food Policy Research The reality of economic growth As India’s economic growth makes headlines around the world, hundreds of millions of Indians face a life of grinding poverty, day in and day out. India’s poor did not escape the effects of the global financial crisis. The United Nations estimates that the number of Indians living in poverty was 33.6 million more in 2009 than if previous rates of economic growth had been maintained. Women in particular have been left behind, despite their potential role in the fight against poverty. Studies show that when women and girls earn an income, they are more likely than men to reinvest it into their family’s welfare. As Pandit Jawaharlal Nehru stated, “In order to awaken the people, it is the woman who has to be awakened. Once she is on the move, the household moves, the village moves, the country moves and thus we build the India of tomorrow.” Source: United Nations A sustainable solution Page 3 Microfinance Microfinance provides resources to individuals to support and grow livelihoods. This enables them to earn a regular income so they no longer have to struggle to afford food, clean water or proper shelter for their families. One of the most important aspects of microfinance is sustainability. As loans are repaid and lent out again and again, funds are continually recycled, helping more people. While the impact of conventional aid depends on a continuous flow of donations, microfinance can achieve sustainability and increased impact over time. We are seeking the financial support of social investors who understand the potential of microfinance to fight poverty. As loan recipients create successful businesses, their business profits will have a ripple effect, improving their family’s lifestyle and boosting their local economy. Plus, as clients invest their loans into expanding their businesses, many will go on to employ others— creating jobs for family members and other people in their community. Born in debt, lived in debt, died in debt Has no opportunity to break out of the cycle of poverty Born in debt, but given the opportunity to break out of the cycle of poverty Born into debt Generates enough income to meet family’s daily needs Poor living conditions Unable to increase income to repay high interest loan Expands business and increases income Takes out debt from money lenders to pay for emergency needs Repays money lender Income insufficient to meet daily needs Repaid loan gets recycled Social investment in Mi India provides capital to fund loans to people in poverty Receives a loan to start small business An innovative financing model Page 4 Social investment Social investment is different from charity. Social investors want to maximise their capital to achieve the greatest social impact possible. In addition, ongoing guidance and technical support is provided to each partner, helping to steer their growth and ensuring each client receives quality service. An investment in Mi India will have social, not financial, returns. It will be invested within a rigorous governance structure, ensuring that for every rupee you invest, more than a rupee will end up in the hands of the poor. A social investment in Mi India is an investment in a nationwide program designed to have maximum impact in poor communities. Each microfinance institution partner undergoes a thorough due diligence process prior to initial investment, in order to ensure mission alignment and financial capability. “The key to ending extreme poverty is to enable the poorest of the poor to get their foot on the ladder of development.” Jeffrey Sachs Development economist There are three features of our model that increase the effectiveness of your investment. Firstly, the funds that we receive are not used to purchase goods and services— instead they are lent to clients as loans, with interest charged reflecting the cost of disbursing the loan. We receive an excellent rate of repayment—97% of all loans are paid back. The funds can therefore be recycled through multiple clients. Secondly, we are able to leverage social investment funds with commercially available debt. Thirdly, the loans are employed to grow livelihoods, creating a ripple effect and benefiting the lives of clients’ family members and communities. Mi India Page 5 Channelling social investment Our vision Mi India aims to mobilise social investments to expand microfinance to remote and marginalised communities throughout India. To end poverty in India by supporting sustainable models of social investment. Mi India will be partnering with an established network of microfinance institutions that share a vision: to lift millions of people out of poverty. To raise social capital from Indians across the globe for providing financial services to the poor in India, thereby enabling them to progress out of poverty. Our mission Founder members Mi India is founded by a group of Indians who are conscious of the development needs of India and have the desire to contribute their skill sets to catalyse socioeconomic change that will take this nation out of poverty. Please visit our website for details: www.miindiacapital.org Lalithamma’s story Page 6 With a bleak start to life and many setbacks, a secure future was a distant prospect for Lalithamma. At the age of six she lost the use of both her legs to polio. Before she was 10 years old, her father had died in an accident and her mother had succumbed to cancer. Left in the care of an elderly grandmother, Lalithamma had to use what little education she had to support herself. As an adult and mother of two, Lalithamma continued to face great difficulties. Her husband was often sick and his wage as a labourer was unreliable. Lalithamma sold a few snacks from a cart, generating just 2050 rupees a day. Saadhana, the local microfinance institution, recognised Lalithamma’s potential as a businesswoman. With a loan of 9,000 rupees, Lalithamma opened a small stall selling snacks and groceries, complete with a pay phone. Today, Lalithamma is an inspiration to her neighbours. Her income has more than doubled to 100 rupees a day and she is able to provide for her family, including sending her daughter Shirsha (pictured below) to school. With one loan, Lalithamma is rewriting her entire family’s future. Be a ‘Mi Indian’ and join us in the fight against poverty As a ‘Mi Indian’, you can: • Participate in the Mi India Social Impact Forum, sharing your views with other social investors • Get regular updates on our website about our partners and become informed about the impact of microfinance • Receive newsletters and audited reports on Mi India’s program and its social impact • Join Mi India’s partners as they provide support in rescue and rehabilitation efforts during national disasters and emergencies, through financial assistance • Increase the impact of Mi India through utilising your networks and social entrepreneurship skills Join the Mi India movement today. www.miindiacapital.org Mi India Development Trust F-31 Ground Floor Royal Residency Sushant Lok-II Gurgaon 122002 Phone: +91 124 4529500 Fax: +91 124 4529502 Email: info@miindiacapital.org