Poverty reduction has been envisaged as one of the key Millennium Development Goals and every state must work towards attaining it. Microfinance institution can instrumentally work toward realization of this goal. Dominican Republic and Haiti are witnesses of how Esperanza Incorporation has transformed the life of their citizens from the poverty ditches to independent individuals. It is recommendable for the Cuban government to follow the step of the neighboring state by allowing the entry of the Non-governmental organizations such as Esperanza. These organizations demand government cooperation in expedition of microcredit services to the poorest groups in the society at a low interest rate. However, the government seems to support poverty encroachment in the country by banning entry of the microfinance institution. Donations are for today but for tomorrow and future, microfinance services are necessary. The microfinance institutions train the vulnerable groups and provide them with necessary financial services for proper exploitation of the opportunities available.
It is evident from the fieldwork research in Dominican Republic and Cuba that microfinance services greatly promote alleviation of poverty than the use of donations. The donations provided by the Catholic Relief Services did not adequately cover all the poorest people in the country. This was because of the government through the manager appointed to control donations acting like barriers to poverty eradications. Esperanza Incorporations through the use of Grameen Bank models proved in Haiti and Dominican Republic that microfinance services are the key to economic empowerment of the vulnerable group. This research analysis come to prove that necessary government policies are critical element for the entry and exit of donors who play a vital role in the provision of microcredit services to the needy group in the society. The paper presents the Dominican Republic to have achieved a lot from the Esperanza microfinance services providers and at par above Cuba in poverty reduction. Socialism and use of propagandas plays a key role preventing poverty reduction policies realities. This is clearly evident in how the Cuban government spent only on the Habana town, which is a tourist attraction centre and left the Santiago de Cuba unattended.
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