Micro finance gets tsunami victims back on their feet

Annette Brooke, MP for Mid Dorset and North Poole, has just returned from a trip to India to see how micro finance has helped local people get back on their feet since the tsunami in 2004. Annette was invited by the charity Five Talents and paid for the trip herself.

Micro finance involves giving very small loans (£25 upwards) to help people set up small businesses. It is regarded as the most important tool for combating poverty and has already helped at least 100 million of the poorest people in the world; people who survive on one dollar a day or less.

Annette travelled to Chennai and visited villages which are involved with micro finance and which where badly affected by the 2004 tsunami.

She saw how micro finance projects are helping people to build small businesses, to create jobs and to support their families in a sustainable and dignified way.

Five Talents supports micro finance projects in developing countries – supporting small loans and business training to the active poor. They have over 20,000 members and over £1m of loan portfolio in circulation (average £80 loan per person).

Five Talents started to work in Chennai post tsunami when the local primary industries of fishing had been wiped out. It has encourage communities to work together irrespective of faith and grown a sense of accountability

Annette said: “This was one of the most informative trips I have ever been on, it was great to see the huge impact that small loans can make to peoples lives. It enables them to set up businesses, make money and fend for themselves.

“It also means that children can stay at school longer and get a proper education, rather than having to help the family keep a roof over its head.”

Rachel Millward, Development Director of Five Talents commented: “It was fantastic to witness first-hand the benefits of micro finance within this community and it was great that Annette could come and learn about it too. Nothing can be more inspiring than meeting people who exist on dollar a day, but have worked their way out of poverty using their own business skills, initiative and hard-work.”