People-centered empowerment

Fundación Paraguaya is a microfinance organization that has been a cornerstone in the fight against poverty in Paraguay. Initially supported by Dr. Martin Burr, the organization has evolved over the decades, moving from traditional charity models to a more dynamic, socially-focused, for-profit entity. This shift was motivated by their microfinance community members, who expressed a desire to determine the direction of their own businesses and initiatives.

“The Foundation heard them—heard what was their purpose in life, and what was the [kind of] business they wanted to run—so, the program didn’t impose on them a certain type of business. I emphasize this because I think it is key: we have to hear people and communities. We cannot impose top-down programs anymore because in every neighborhood, whether in Nairobi, Asunción or Rio De Janeiro, every person in those places knows what they need and what’s the best way to make progress in their lives,“ says Luis.

Luis notes that while microfinance was their initial focus, success in that area allowed them to expand their programs into health insurance and sanitation. This approach encouraged community members to take ownership and believe they could tackle other challenges.

Protagonists, not beneficiaries

Luis observes that early development and corporate social responsibility (CSR) projects often prioritized donations and dictated development strategies, positioning communities as passive recipients rather than active participants. He adds that this “donor-beneficiary” dynamic often results in limited engagement during project implementation and post-program sustainability challenges due to a lack of community ownership.

“We have to put families and communities [at the center] of this equation. We can no longer impose top-down solutions without hearing them. So they are not beneficiaries; they have to be protagonists of their own development,” he emphasizes, adding that this family-led approach to poverty reduction has been successfully implemented in Paraguay and other countries.

Their method focuses on families receiving financial education, developing their own financial development plans, and leveraging available resources to meet their specific needs. By placing families at the center of development efforts, we can deliver interventions that are relevant, sustainable, and, most importantly, effective.

Using technology to scale impact

Fundación Paraguaya has developed a picture-based mobile app that helps families to assess their own economic situation, and receive tailored feedback on areas of improvement. Instead of using social workers as intermediaries to collect data, the app allows families to directly capture their needs at a household level.

“…today technology can allow us to know exactly what a family—not only the community, but the household—needs. By aggregating the information, you can know what the community needs really are. We started this program in Paraguay, but today we have partners in 60 countries, many of them in Africa.”

This tool, which is built on the belief that communities are best placed to identify their own needs, uses tailored graphics based on the user’s location. Luis notes that this representation is important, especially because they operate multinationally. Upon registration, users can access surveys and directories of locally available services, and program activities.

Parting shot: It is possible!

The journey to eliminate poverty is long and challenging, but with leaders like Luis at the forefront, there is hope for a future where all families have the opportunity to thrive. His story is a powerful reminder of the importance of community-driven development and the transformative impact that grassroots initiatives can have on poverty alleviation.

“We have to believe that we can eliminate poverty, that it is possible! We don’t have to talk anymore about alleviating poverty, or reducing poverty. Those are weak goals. We need to establish the goal of eliminating poverty, because it’s possible. So in the past, humanity has eliminated many diseases, so why not poverty?”

Luis’ work with Fundación Paraguaya continues to inspire and empower communities across Paraguay, and his insights offer valuable lessons for development practitioners around the world.

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