Alliance Online - September 2007

The Green Revolution and microcredit: arguing the case for and against

Yumi Sera

EVENT Grantmakers Without Borders Annual Conference
Date 8-9 June
Venue New York, USA
Theme Just Giving

Two hot topics for discussion at the Grantmakers Without Borders (Gw/oB) annual conference were microcredit and the Gates and Rockefeller Foundations’ new Alliance for a Green Revolution in Africa. The Gw/oB conference is recognized for its blend of issue-based and practical sessions and networking opportunities to share ideas and potential collaborations. Over 200 funders, individual donors and civil society activists – the majority from the US, but some 18 per cent from outside – participated in 40 plenaries, workshops and other sessions.

The conference started with a review of the opportunities and risks associated with the Alliance for a Green Revolution in Africa (AGRA), the new $150 million-plus initiative spearheaded by the Gates and Rockefeller Foundations. In an innovative panel format, alternative and opposing perspectives were aired. Representatives from the foundations presented their proposal to revitalize small-scale farming across Africa, starting with the development of more productive and resilient varieties of major food crops, together with soil improvement, better water management and training for local agricultural scientists, so farmers can produce larger and more reliable harvests. The programme is based on strong research and development, and monitoring and evaluation.

But there were some who questioned AGRA’s corporate connections, intentions, processes of inclusion, and potential negative impact. A researcher from the Institute for Food and Development Policy said that the proposal does not take into account the lessons learned from the original Green Revolution, such as the deepening divide between rich and poor farmers, the eventual degrading of agro-ecosystems, and the loss of agro-biodiversity. He also cited the lack of understanding of the root causes of hunger and the need to address the structural inequities in the market and political system. Presenters and participants called for the inclusion of small farmers, in particular women, pastoralists, fisherfolk and their organizations. Some called for the AGRA to pay more attention to their traditional systems and practices rather than introducing new technologies that may potentially destroy these practices. They also urged AGRA to ensure that the benefits go to the intended beneficiaries – small-scale farmers.

The closing session on microcredit was equally thought-provoking. While there is increased attention on microcredit as a panacea for remedying poverty, its critics are challenging its rigidity and the disempowering effects on the poor, especially women. Experts from the floor spoke from their own experience, arguing that for every positive anecdote about microcredit, there are just as many negative ones – women being forced into the sex trade or children into the workforce to help pay back loans, credit being used simply to solve cash-flow problems, etc. Others provided a more balanced approach saying that many development solutions, microcredit included, depend very much on the situation and the way the programme is designed. The concluding remarks suggested that more longitudinal data and analysis are required to measure the effects of microcredit on gender equality and sustainability; also that financial literacy is a huge need that funders should be paying more attention to, especially over the next few years when many for-profit entities are expected to enter the domain of microfinance.

The breakout workshops addressed emerging trends in philanthropy from diverse perspectives (most Gw/oB panels include a resource person from the Global South). Issues covered included human rights, climate change and HIV/AIDS.

The Association for Women’s Rights in Development (AWID) presented the results of research showing the current state of women’s rights organizations as one of ‘survival and resistance’, with less money available now than five years ago. It also showed that these organizations spend more time on fundraising and that funding for core operational support is limited. The research suggests strategies for increasing funding for women’s rights in different donor circles. These involve advocating at governmental level, engaging foundations by identifying champions and encouraging dialogues, and helping smaller organizations to make connections with a diverse group of philanthropists.

The conference also offered a series of practical sessions on grantmaking, including topics such as exit strategies, working with intermediary organizations, evaluation, capacity-building, grants administration, and the launch of a common proposal format.

The session on exit strategies produced examples of good practice from the panellists and audience on how to support the sustainability of an organization even after the end of funding. It is crucial for such sustainability that the relationship between funder and grantee should be built on trust and accountability. Open and flexible channels of communication help both parties to plan for changes, even unanticipated ones. Monitoring with clear indicators, evaluating social impact, and collecting and disseminating lessons learned were also seen as critical to effective grantmaking.

One of the concerns that emerged repeatedly was how US grantmakers are increasingly struggling with the need to comply with government regulations and guidelines. Building on the strengths of the community, being knowledgeable and sensitive about the cultural and political context, and investing in long-term sustainability of their grantees – without imposing excessive bureaucratic requirements on them – were the principles that echoed in most of the workshops. Balancing the requirements imposed by the authorities (in whichever situation or country) with the urgency to make a difference is a challenge. At the same time, it is inspiring to see people’s commitment to social change.

Yumi Sera is an international developmentconsultant specializing in grantmaking and capacity-building. Email yumisera@mac.com

For more information
www.gwob.net

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