Microfinance Counseling is Necessary
Dr. Wilfried Kerntke, Director, Germany
My experience with microfinance goes back to projects that I initiated in the mid-90s in Yugoslavia, volunteering with the Serbian Zdravo-da-Ste organization.
Good counseling, close to the circumstances of life of the beneficiaries, is essential for the success of microfinance. When you accompany the beneficiaries in their psychosocial needs, when you build empowerment through activating counseling, then the money becomes just a tool for the realization of some of their needs.
Without such continuous and partial counseling, microfinance will accelerate the complete penetration of life by finance; it will make the beneficiaries objects of the logic of the finance market, rather than supporting them to be subjects of the planning of their lives.
Microfinance in itself is not good or bad - it all depends on the context.