In other words, a sustainable livelihoods approach to investments demands the same diversity and flexibility as is found in the actual livelihood systems and adaptive strategies of the people themselves. Financial thinking tends to focus on financial capital, using economics as the only valid yardstick for measuring success, while ignoring other, even more valuable forms of capital such as social, human and natural capital. If natural capital is valued, for example, environmental soundness will not be sacrificed for short-term financial rewards. Indeed, economists could learn much from observing the household strategies of resource management among the poor, where nothing is wasted and careful use is made of every commodity. Poor women have demonstrated to be excellent credit risks, repaying their loans on time at a rate of at least 97 percent.
Women also tend to spend all their earnings on the welfare of their families.
However, credit does not necessarily equate empowerment. If there is improved income, this probably does not improve the status of women. The method of delivery of the finance may be inherently disempowering because getting high rates of return is not automatic. It often involves putting pressure on women Credit could only pay for empowerment if there were a distinct linear relationship between credit, improved income, and improved status.