Peter Greer, President of HOPE International and co-author of the book The Poor Will Be Glad: Joining the Revolution to Lift the World Out of Poverty, has been involved in microfinance for ten years. As president of HOPE International, Peter Greer oversees a Christian-based microfinance network in 14 countries serving hundreds of thousands of entrepreneurs. With fellow author Phil Smith (a former oil executive and active philanthropist), Peter Greer is striving to bring the message of microfinance to the Christian community. I talked to Mr. Greer about The Poor Will Be Glad, its implications for Christian charity, and how microfinance can be a sustainable solution for poverty.
DT: Tell me a little about how The Poor Will Be Glad was put together. How did you end up collaborating with Phil Smith, and what countries does your book cover?
Peter Greer: I started writing the book on a helicopter over Afghanistan. While we were there, we saw a consistent theme. Something just wasn’t right as we were paraded around villages…there was a sense of entitlement and dependency on foreign charity. But we wanted a permanent way for people to solve their own problems. There is a real difference between a “hand out” and a “hand up.”
I’ve been a friend with Phil Smith for a long time, and Phil has supported our work. He asked me if there was any books to help the church to better understand microfinance, but I couldn’t point him to anything. So we ended up writing this book to introduce microfinance to the broader Christian audience. The Poor Will Be Glad discusses Haiti, the Democratic Republic of Congo, the Philippines, among other places. We tried to include a wide geographical variety so people can see microfinance works in many different contexts. We also talk about the exploitation of people who need a bit of money to start a business through loan sharks. Microfinance helps people avoid this exploitation.
DT: What roles does the Christian religion play in microfinance? What challenges has HOPE run into in areas that are not traditionally Christian?
Peter Greer: I’d like to mention an excellent Financial Times article by Matthew Parris called “As an atheist, I truly believe Africa needs God.” Parris explains the impact that faith has on the quality of humanitarian programs. In these countries, you cannot just talk about finances. In many ways, we’ve seen that connecting our faith to our service deepens and broadens the impact. We want to let people know there is more to happiness than just increasing income. Also, we work with anyone regardless of creed.
We don’t go into these countries “undercover”; we explain why we do things, and we use Biblical values in our services. Another advantage of microfinance in a Christian context is that we can partner with local churches, which adds credibility and improves relationships.
We have been invited to work in non-Christian areas, and received an incredibly warm reception. We still give the same service. Working in non-Christian areas also allows us to clarify and demonstrate what our faith is all about.
DT: What kind of businesses do you loan to? How do you determine if these businesses are sustainable?
Peter Greer: If you and I were to go into Rwanda, we would have to decide what kind of business to support. How can we do that? Microfinance is based on “solidarity groups.” The community members of these solidarity groups must cross-guarantee the loan. That’s what called the “social collateral.” You must convince your community members that you have a solid business. We find that these solidarity groups can make far wiser decisions than we can.
We have supported neighborhood shops, restaurants, barber shops, transportation services…anywhere where there is a business opportunity.
DT: What kind of problems have you run into with microfinance?
Peter Greer: I was reading a blog about how immoral it is to ask the poor to repay a loan. There’s this belief that it’s better to give food and water today, rather than helping the poor help themselves through the creation of a business. One of the big misunderstandings of microfinance is that you must be hurting the poor. This unfortunate distrust of business makes people “leave their business hat” at the door, rather than use it for poverty alleviation. The result is temporary and insufficient charity. In many of these countries, we also have to deal with corruption, and the basic challenges of serving in places that don’t even have electricity and running water.
DT: How can someone get their church interested in microfinance?
Peter Greer: The purpose of The Poor Will Be Glad is to reach the demographic of churchgoing Christians. The book has several practical ways to achieve the goal of getting a person’s church involved in microfinance. We created a small group curriculum available on our website (www.thepoorwillbeglad.com). This curriculum includes what the Bible says about finances and the poor, and also has activities to demonstrate some aspects of poverty, such as skipping a few meals or taking a bucket shower. The book also provides resources for churches who want to get directly involved in microfinance, either through partnerships with existing organizations or beginning their own projects. The Poor Will Be Glad is about generating a deeper understanding of microfinance.
Too often, Christians are known for what we’re against, rather than what we’re for. We hope that this book fuels a movement where the church is known for thoughtful compassion and truly following the example of Jesus Christ.
To learn more about HOPE International and its microfinance programs, please visit Hope International. You can also find more information about The Poor Will Be Glad at the book’s official website.