The theme for Blog Action Day is poverty and the Grameen Foundation is an organisation making use of technology to enable the poor to create a world without poverty. The Mifos Initiative program is using open source software to create a service model that increases access to technology for microfinance institutions, allowing them to reach the worlds poor. Microfinance is a program whereby poor people are granted small loans (less than $200) to start and sustain small business like the Villiage Phone Program. This particular model has proven to be an effective strategy to fight poverty.
Microfinance institutions are finding it challenging to reach to reach over 400 million families in need of financial services due to the lack of cost-effective technology which is preventing them from expanding. Many are still using Excel or manual based systems with only half having automated systems. Mifos is a open source solution which allows microfinance institutions to to install the software at no cost. While there could be costs associated for installation, maintenance and training, this open source solution reduces costs which allows more people to be reached and helped create sustainable solutions to combat poverty.
The functionality of the product allows microfinance institutions to standardise common processes and cater for regional differences. The product makes use of a web interface and connected to a MySQL database which can process anywhere between 1000 – 1 million clients. To assist with deploying or developing the application join the community. Mifos is allowing microfinance institutions to serve the people effected by poverty by:
- lowering costs which could be spent elsewhere
- faster and more secure processing
- less paperwork which reduces human error
- reducing fraud
The Grameen Foundation have a number of programs making use of technology to enable people to empower themselves and create sustainable businesses. Instead of solely being dependant on aid, people who are effected by poverty are creating and defining their own futures and fighting their way out. Technology and free open source software (FOSS) in this case can play apart in empowering people to help themselves. With the use of technology opportunities are being presented to reduce poverty. The founder of Grameen Bank Muhammad Yunus explains the importance of information technology in the fight against poverty…
“An individual poor person is an isolated island by himself and herself. IT can end that isolation overnight”
2 Responses to “Tackling Poverty With Open Source Software – Blog Action Day”
[...] Open Technologist [En] escreve sobre usar o software de código aberto para combater a pobreza: The Mifos Initiative program is using open source software to create a service model that increases access to technology for microfinance institutions, allowing them to reach the worlds poor. Microfinance is a program whereby poor people are granted small loans (less than $200) to start and sustain small business like the Villiage Phone Program. “O programa Mifos Initiative está usando software de código aberto para criar um modelo de serviço que aumenta o acesso à tecnologia para instituições de microfinanciamento, para permitir que alcancem os pobres do mundo. Microfinanciamentos são programas pelo meio dos quais pessoas pobres tem acesso a pequenos empréstimos (menos de 200 dólares) para começar e manter pequenos negócios como o Village Phone Program [En].” [...]
[...] Blog Action Day I blogged about how the Grameen Foundation is using open source software to assist there needs to rid the world of poverty. I just finished Jeff Howe’s book about [...]