Author Description

This case study examines how the work of these two organizations combines microfinance with larger goals of social justice and political empowerment; how it offers an important alternative to the prevailing microfinance paradigm in addressing poverty and inequality.This study analyzes the opportunities and synergies, challenges and tensions, of blending microfinance and community organizing in developing a women-led poor people's movement. It looks in particular at two organizations---an NGO, Dialogue on Shelter for the Homeless (known as Dialogue), and an organization of squatter settlers, the Zimbabwe Federation of Homeless People (known as the Federation). The two organizations work together using local savings and credit groups as a tool for organizing squatter communities. In addition to savings and credit, their model emphasizes community participation, peer learning and political action. The ultimate goal of this process is to open political space so that poor groups can negotiate directly with local and national governments and NGOs in order to address their basic needs (which centre around land and housing).Over the past decade, donors and international NGOs concerned with poverty alleviation have increasingly concentrated on supporting microcredit and microfinance initiatives; providing credit to the poor to assist them in developing income-generating activities. As the microfimance movement has matured, more and more emphasis has been placed on developing sustainable financial institutions and ensuring that loans are repaid. At the same time as microfinance institutions become larger and more bureaucratic there is a danger that issues of social justice, gender equity and income redistribution will become sidelined and that community participation will be focused only on economic goals.