Why does Opportunity International Australia work where it works?
A common question asked of Opportunity Australia staff is where we work and why? Why India, when their economy is thriving? Why not Africa, when there is so much need? Why the Philippines,where there is so much microfinance activity happening?
Opportunity Australia’s current focus countries are determined by a number of factors: the need in a country; the suitability of the economy; the political climate; and their relative proximity to Australia. As such, Opportunity Australia currently focuses its work in three countries – India, Indonesia and the Philippines.
India
A near neighbour, India represents both a tremendous need and obvious opportunity to have a significant impact. Despite being the fourth largest economy in the world, India faces many pressing problems, including overpopulation, environmental degradation, social conflict and extensive poverty.
With a population of over 1.1 billion people, India has a larger number of people living in poverty than any other country in the world - approximately 900 million people. Large disparities exist across various regions and social groups. Poor and marginalised groups are often vulnerable to exploitation, including slavery and exploitative sex work. Due to poverty, some families are forced to sell their children, their relatives or themselves into slavery in return for financial help or to pay debts.
The majority of India’s poor live in rural areas and depend directly on natural resources to survive. Population growth and widespread poverty have placed intense pressure on India’s environment. State control over natural resources has increased, leaving some rural communities with limited access to water, forests and fish. India is also home to the largest number of hungry people in the world – a staggering 200 million children, women and men. India’s rates of child malnutrition are higher than most countries in Sub-Saharan Africa. These numbers are staggering and show that the need for poverty alleviation in India is immense, with women and children in need of immediate help.
Our India Program is managed locally by our subsidiary, Dia Vikas Capital, and our vision for India is to see local partners help millions of poor people lift themselves out of poverty permanently. We currently have 14 partners who support over one million clients all over India. As many of our partners are located in the remote northern states of India, where microfinance services are scarce, the prospects for alleviating poverty are vast.
As we continue to focus on India and provided the required capital is available, we hope to fund 25 partners serving around five million clients in five years.
Indonesia
One of Australia's nearest neighbours, more than half of Indonesia’s population of 235 million people are poor. The poorest areas of Indonesia are the remote eastern islands, including West Timor, where Opportunity Australia is currently focused.
West Timor is home to some of Indonesia’s poorest people. Farmers struggle with infertile soils and poor infrastructure; local residents are often illiterate and have limited business experience.
In urban areas, people have often moved to town centres in search of work. Without social security, they rely on ingenuity to make or trade goods to support their families. Some will develop businesses and rent basic premises, but most work from their homes or on the side of the street. For those living in rural areas, life is seasonal. Many rural communities are largely cashless societies, where villagers farm and sell produce at small local markets. However, with poor quality soils, harvests are often meager. Rural villages are also home to indigenous communities which have been marginalised by traditional development programs in the past and remain trapped in a cycle of poverty.
Housing in West Timor is very basic. With limited access to clean water and high incidences of malarial mosquitoes, residents and their families are susceptible to disease. Children usually attend school for half a day, five days a week; however teaching standards are low and the majority is illiterate.
Opportunity Australia has been working in partnership with, Tanaoba Lais Manekat (TLM), for over 10 years in West Timor. With over 250 staff and 12,000 clients spread across the region, TLM is now the region’s leading microfinance provider. Faced with considerable challenges, TLM is committed to helping the people of West Timor break free from poverty.
In the face of very great need, with a trusted partner operating in an area that is on our doorstep, West Timor, Indonesia remains a key focus area for Opportunity Australia at the current time.
The Philippines
In the Philippines, poverty is widespread. Over 43.1 million people live on less than US$2/day (that’s almost half the population), with 14.4 million people unable to access safe drinking water and 17.3 million people undernourished. In the wake of the global economic crisis, poverty levels in the Philippines are on the rise.
Currently, MFIs in the Philippines serve approximately 1.4 to 1.7 million clients. The total market for microfinance is estimated at five million households (those living on between US$1-5 per day) – leaving a large, unserved market of up to 3.3 million poor households.
As the world’s biggest importer of rice, the global food crisis has also had a severe impact on the Philippines. Demand for exports to the United States and Europe has also fallen, causing job losses, with many people forced into informal or part-time work.
Small and medium-sized enterprises make up 99.6% of total businesses and employ 70% of the workforce in the Philippines. By invigorating small businesses, microfinance empowers many Filipinos living in poverty – helping them increase their income, build up assets, prepare for emergencies and afford education, health, and housing. Microbusinesses can also generate much-needed employment in local economies.
Opportunity International Australia currently supports three partners in the Philippines: ASKI, TSPI and TSKI. Some of these partnerships are over 25 years old. Our partners are working hard to meet the challenges they face in a competitive microfinance market whilst continuing to prioritise service to the poor. Opportunity Australia is committed to supporting them in their endevours.
Sources: CIA World Factbook, United Nations Human Development Report 2007/2008, AFP, Philippine Daily Inquirer, World Bank, International Food Policy Research Institute, Forbes, National Portal of India, The Sydney Morning Herald.