From Dependence to Dignity: How to Alleviate Poverty through Church-Centered Microfinance

by Brian Fikkert, Russell Mask

The church of Jesus Christ finds itself at a very unique moment in history. The average Christian living in the “economically advanced countries” enjoys a level of prosperity that has been unimaginable for most of human history.  At the same time, over 2.5 billion people in the Majority World (Africa, Asia, and Latin America) live on less than $2 per day, with many of these people being Christians.  Ironically, it is amongst the “least of these” in the Global South that the global church is experiencing the most rapid growth.

All of this raises profound challenges to the global church.  How can churches and missionaries in the Majority World effectively address the devastating poverty both inside their congregations and just outside their doors? How can churches in the economically advanced countries effectively partner with Global South churches in this process?  The very integrity of the global church’s testimony is at stake, for where God’s people reside, there should be no poverty (Deuteronomy 15:4; Acts 4:34).

For the past several decades, microfinance (MF) and microenterprise development (MED) have been the leading approaches to poverty alleviation. MF/MED is a set of interventions that allow households to better manage their finances and start small businesses. From remote churches in rural Africa to the short-term missions programs of mega-churches in the United States, churches and missionaries have taken the plunge into MF/MED, trying to emulate the apparent success of large-scale relief and development organizations. Unfortunately, most churches and missionaries find this to be far more difficult than they had imagined. Repayment rates on loans are low and churches typically end up with struggling programs that require ongoing financial subsidies. Everybody gets hurt in the process: donors, relief and development agencies, churches and missionaries, and--most importantly—the poor people themselves.

This book explains the basic principles for successfully utilizing microfinance in ministry. Drawing on best practice research and their own pioneering work with the Chalmers Center, Brian Fikkert and Russell Mask chart a path for churches and missionaries to pursue, a path that minimizes the risks of harm, relies on local resources, and enables missionaries and churches to minister in powerful ways to the spiritual and economic needs of some of the poorest people on the planet.

The insights of microfinance can play a tremendous role in helping to stabilize poor households, removing them from the brink of disaster and enabling them to make the changes that are conducive to long-term progress. Moreover, when combined with evangelism and discipleship, a church-centered microfinance program can be a powerful tool for holistic ministry—one that is empowering for the poor and devoid of the dependencies plaguing most relationships between churches in economically advanced countries and churches in poor nations.

Genres: Economics, Poverty, Nonfiction, Christian, Social Justice, Christian Non Fiction, Faith

336 pages, Paperback

First published April 21, 2015

About the author

Brian Fikkert is an Professor of Economics at Covenant College and the Founder and Executive Director of the Chalmers Center for Economic Development at Covenant College. Brian received a Ph.D. in Economics with highest honors from Yale University, and a B.A. in Mathematics from Dordt College. Specializing in Third World Development and International Economics, Brian has been a consultant to the World Bank, the Inter-American Development Bank, and the United States Agency for International Development. He has published articles in both leading academic and popular journals and has been a contributor to several books. Prior to coming to Covenant College, he was a professor at the University of Maryland and a research fellow at the Center for Institutional Reform and the Informal Sector.

Reviews

[Matthew · Rating 3 out of 5]

This is a good book when you consider the objective of the authors. It lays out principles of microfinance, benefits & shortcomings of various models, and what errors to avoid.

The weakness in this article is that the application and use cases are largely limited to what many call "3rd world countries." Since the audience is western from what I can tell, if would have raise the value of the book significantly if it provided applications for something like impoverished inner city settings or declining rural areas.

[Sara Owens · Rating 4 out of 5]

Great book, but it is so dry that I have taken three years to finally finish it. …maybe because I always feel the need to start from the beginning. Either way, I still would highly recommend it for anyone working in any kind of international or national non-profit or ministry. It is a bit repetitive at points if you’ve already read When Helping Hurts, but also incredibly helpful at getting your mind spinning and helping widen or alter your perspective on what it means to engage in meaningful work with our equals living in marginalized communities.

[Michelle · Rating 4 out of 5]

A thorough examination of poverty alleviation through church-centered micro finance. Diagrams and charts lighten the scholarly text which is detailed but not too hard to read. Chapter summaries and application questions would make this useful for discussion especially for a group hoping to set or change their strategies in dealing with the poor. Practical without loosing a biblical worldview and focus on the centrality of Christ.

[Tim Maurer · Rating 4 out of 5]

Brian Fikkert changed my view of charitable work forever with his book "When Helping Hurts." In "From Dependence to Dignity," he takes us on a deep dive into the world of micro-finance, applying his vision of optimal acts of service (from a Christian perspective) to this important work first introduced to the world by Nobel-prize winning author Muhammad Yunus.

[Cindy Pennington · Rating 4 out of 5]

excellent. I was concerned that it would be too textbook-ish. Easy read. I learned A LOT!!!!

[Deb Richardson-Moore]

We study these folks at from the Chalmers Center at our church. They are very well informed.

[Ebonique Boyd · Rating 3 out of 5]

Good brief overview of microfinance from a Church perspective. Very easy to read.