Muhammad and The Origins of Islam

Mohammad and Islam

The name Mohammad, also spelled Muhammad and Mohammed, means “the much praised one”.(1) Islam means “submission” and Moslem means “submissive one”. Islam is not just a religion but a way of life. It is the newest version of the message sent from god through his prophets Moses and Jesus among others. It gives it’s followers a purpose for life on earth and promotes harmony for all mankind. It teaches that there is only one god and that through faith and good deeds it’s followers will go to a heaven or paradise in the afterlife. I think the most important part of this religion is the fact that it is monotheistic. That is that it stresses that there is only one god. This promotes a sense of equality for all mankind in that god is the only one above us and the only one to be praised and that we are all the same or equal in his eyes. To examine the origin of Islam we must get to know the prophet of Islam, Mohammad ibn-Abdullah.

Mohammad was born in Mecca in about 570 A.D.(2) at a time when the Near East had become a battle field of struggles between the Roman and the Persian Empires, between Western civilization and Eastern Civilization and between the Church of the East (Nestorian) and Christian Churches.(3) He was born a member of the Quraish tribe. His father died just a few months before he was born leaving he and his mother a small house, five camels and a few goats. His mother, Amina, was often sick and could not properly care for her son sent him to live with foster parents in the highlands at the age of two.

When Mohammad was five he had the first of many visions that he was to experience over his lifetime. He was walking in a field and suddenly fell down and started to shout and convulse on the ground. He had a vision or delusion that two men wearing white were cutting open his stomach and stirring up the insides. A boy that had been walking with him ran for help. When help arrived they found him standing up and pale. When they asked him what had happened he said that two angel had come down from the heavens and cut open his belly looking for something. He didn’t know what it was that they were looking for. Mohammad’s foster parents, fearing that he was possessed by the devil, took him back to Mecca to see his mother and tell her about the vision but his mother told them not to worry and that she had been expecting such things to take place. She told them not to pay attention to future attacks or visions. I guess that this was not reassuring enough to Mohammad’s foster parents because Mohammad stayed in Mecca with his mother for the next year until she died on the way back from a visit to her relatives. Mohammad was now six years old and an orphan.

So now Mohammad is six years old. He never new his late father, his mother had just passed away and his foster parents didn’t want him. What was he going to do?.. He went to live with his grandfather Abdul Muttalib. Abdul was a merchant and a warrior. His grandfather taught Mohammad the rituals and ceremonies involved in worshiping the moon god. Mohammad lived with his Grandfather for two years. When Mohammad was nine his grandfather died and he went to live with his uncle.

Mohammuds uncle was Abu Talib. Abu was a merchant who traveled all over the desert in caravans trading his wares. When Mohammad was about ten years old he began traveling with Abu in the caravans. His uncle would hire him out as a guard and a camel driver. Legend says that when Mohammad was about twelve he met a monk in Syria who praised Mohammad as “Gods messenger”(4) and told his uncle that Mohammad would grow to be a great man. From a young age he enjoyed having chalenging conversations with priests and monks and other holy men. For the next 13 years or so Mohammad traveled all over the desert from Yemen to Damascus and Bostra. Over these years Mohammad earned the reputation of being a fair and honest trader and a skilled camel driver.

When Mohammad was twenty five years old he married a women who had been widowed twice before. She had a small fortune from her previous marriages. Her name was Khadija and she also happened to be fifteen years older than Mohammad. Mohammad’s decision to marry the widow Khadija was an instrumental turning point in his life. If he had not married Khadija who knows how long he would have continued to work as a trader and camel driver but with her riches he was able to stop his daily work and concentrate on meditation, prayer and the development of his new faith.(5)

Bye the age of thirty five his wife had given him six children, four girls and two boys. The two boys died as children and he would always regret that he had no male children to carry his name. During Mohammad’s life up to this point he had always been troubled by the corruption and injustice that he had seen and experienced in his home town of Mecca and throughout his journeys around the dessert. He saw the property of widow and orphans taken away. He saw traders that cheated their customers with scales and weights that were “fixed”. He saw men burry new born female children and fathers that would kill their children during famines. He saw drunkenness and gambling and saw what it did to the pagan people of his country or was it what being a pagan did to them? It was from these experiences that he later condemned all malpractices and prohibited drinking and gambling.(6) He was troubled by the pagan practice of idol worship, many gods and nature spirits were worshiped in his country. Mecca was a commercial and religious center. Pilgrims would come from all over to worship the Meccan Kaaba (“cube”) which was a shrine that contained a black rock that was most probably a piece of a meteorite which was thought to come from the home of the gods.(7) Mohammad refused to worship these gods and idols. One reason was because he liked the god that was worshiped by the Jewish and Christian merchants that he had met on his long caravans and who often passed through Mecca. Secondly, because he was convinced that this very god had spoken to him.

Mohammad spent much of his time alone in the dessert in meditation. On this one night his life would change forever. This night would come to be known as the “Night of Power”. Mohammad was now forty years old and he had been meditating in a cave on Mount Hira for six months. Tired, he went to sleep for the night. That night a storm came into the dessert over the cave where Mohammad was sleeping. This was going to be Mohammad’s first great revelation. He was sleeping or in a trance when he heard a voice that said “Read!”. Mohammad answered that he could not read. He had never learned to read as a boy or up to this point in his life. Twice more for a total of three times the voice commanded Mohammad to read. Mohammad again answered that he could not read and finally asked, “What can I read?” The Voice boomed:

“read in the name of your Lord, the Creator, Who created man from a clot of blood! Read! Your Lord is most merciful, For he has taught men by the pen And revealed the mysteries to them!”(8)

Then he was given a scroll that he opened and read. When he awoke in the morning he remembered the words that were written on the scroll even though he had never been able to read before. The words said “as though written upon his heart”. Mohammad was terrified. He ran out of the cave into the morning desert. He thought that he might be possessed. He remembered the vision that he had as a child and still didn’t know what that meant. He even thought about killing himself. Then he heard a voice that seemed to come from all directions at once. It said “O Mohammad! You are Allah’s messenger, and I am Gabriel!” He looked up and saw an angel in the sky. He tried to turn away but he saw the angel wherever he looked. Finally the angel disappeared and he ran back to Mecca to tell his wife what had happened. He was now the prophet of Islam.

After telling the whole story to his wife Khadija she assured him that he was not going mad and that all was well. They later came to rejoice in the message from the angel and she became one of his first followers. Mohammad would return to the dessert time and time again for meetings with the angel Gabriel. He began preaching and started to attract a few supporters. Mecca was not happy with Mohammad message or his growing number of followers. Many people came to Mecca for pagan religious reasons and if Mohammad’s message took hold these pilgrimages would end meaning a loss of money coming into the city. Mohammad’s wife died in 619. The persecution that he and his followers had to endure in Mecca was becoming unbearable. So, in 622 Mohammad and his band of followers moved north to the city of Medina. They were met in Medina by 200 deciples. This journey came to be known as the Hijrah which means “the breaking of bonds”. Hijrah is used to mark the first year of the Muslim calander. 1997 A.D. (the year of our Lord) is the Islamic year 1417 A.H. (year of Hijrah). Mohammad became Medina’s Religious and Civil Leader. He led the Moslem people into war raiding trading caravans and eventually taking over his home City of Mecca in 630, the very city that had persecuted him so much in the past. Mohammad’s show of power impressed Arabs everywhere and soon North and South Arabia sent representatives to Mecca. They all Supported Mohammad and his new religion of Islam. Arabia was united under Mohammad and Islam.

Mohammad’s Islamic teachings developed over the years through trips to the dessert where he would meditate, have visions and go into trances and communicate with the angel Gabriel. Mohammad would tell his followers what he had seen and heard and they would memorize or write down his messages on such things as animal bones, leather and parchment paper. In about the year 632 Mohammad announced to his people that he had perfected the new religion, “…I have completed by blessing upon you, and I have approved Islam for your religion,”(9) This was a message that he said he had received from god. He died the same year about three months after this announcement. About 15 years after his death all of these memorized and written teachings were compiled and re-written into the Islamic holy book called the Quran or Koran. By 100 years after the death of Mohammad Islam had spread west to Spain and east to India. From India Islam spread south to Malaya, Indonesia and the southern Philippines and even made it up north to South Western China by way of central Asia. Of course Today Islam has spread throughout the world.

One of the reasons that Islam caught on in Arabia and elsewhere is that it offered the promise of an afterlife unlike many of the pagan religions that it replaced. Also, Islam was simple and didn’t require allot of the elaborate rituals or priests as did the Christian and the Jewish faith.

The Creed of Islam is constituted of five basic beliefs. They are 1. The belief in god- This is Islams fundamental belief. One god with no equal who created the earth. 2. The belief in angels- Angels are considered the messengers of god, Gabriel being the greatest and the one who spoke to Mohammad himself. Every person is believed to be assigned two angels. One for recording good deeds and one for recording bad deeds. 3. The belief in the prophets- Mohammad is considered to be the greatest of the prophets. Other prophets include but are not limited to Moses, Noah, Adam and Jesus. 4. The belief in the holy books- The Quran or Koran is considered to be the holiest of the books. It is supposed to be the final revelation to man. Islam believes that it was written in heaven in Arabic and then passed down to Mohammad orally via the angel Gabriel. 5. Belief in the day of judgment- The day when the lists that each persons angels have been keeping are tabulated and god makes the decision of weather each person will spend eternity in heaven or hell.

The Five Pillars of Islam are the five basic practices and they are 1. Creed- The five basic beliefs and practices. 2. Prayer- Muslims must pray to Allah (god) five times a day. Congregations should be held on Fridays lead by a local chief. 3. Alms Giving- Muslims should give one fortieth or 2 1/2% of their annual income to their faith. 4. Fasting- The ninth month of the Islamic lunar year is called Ramadan. Every day during Ramadan Muslims must fast from morning until dusk. Certain people are excused from fasting such as pregnant women and children. 5. Pilgrimage As long as it is within their means financially, Muslims must make a trip to Mecca once in their lives.(10)

Today it is estimated that over 800 million people practice Islam. It is dominant in the Middle East, North and east Africa, Central Asia and Indonesia. What made Islam so popular and catch on so well? Perhaps it was the fact that it shared so much with Christianity and Judaism. The belief in Adam as being the first man, the same one god, the same prophets such as Jesus and Moses, angels, heaven and hell. It doesn’t share the same message of love as in Christianity however it does lay down a set of rules and responsibilities creating a high moral standard. Before writing this paper the only thing I knew about Islam was that there was a religion called Islam and that it’s followers were called Muslims. Now I know that these words in themselves have very important meanings. By no means is this a complete works on Islam and it wasn’t meant to be. But I hope that you may have learned a thing or two and possibly have a better understanding of this religion.

BIBLIOGRAPHY

Lamsa, George. The Short Koran. New York, Ziff-Davis Publishing Company, 1949
Payne, Robert. The History of Islam. New York, Dorset Press, 1987
Murphey, Rhoads. A History of Asia. New York, HarperCollins Publishers Inc., 1992
Gabriele, Francesco. The Arabs. New York, Hawthorn Books Inc., 1963
Bullock, Alan. World History. New York, Doubleday & Company Inc., 1962
The Internet, http://www.sim.org/islam

Foot Notes:

(1) Francesco Gabrieli, The Arabs, New York, Hawthorn Books Inc., 1963, p. 26
(2) The Internet, http://www.sim.org/islam
(3) George M. Lamsa, The Short Koran, New York, Ziff-Davis Publishing Company, 1949, p. 14
(4) Robert Payne, The History of Islam, New York, Dorset Press, 1987, p. 12
(5) Alan Bullock, World History, New York, Doubleday & Company Inc., 1962, p. 101
(6) George M. Lamsa, The Short Koran, New York, Ziff-Davis Publishing Company, p. 10
(7) Ibid.
(8) Robert Payne, The History of Islam, New York, Dorset Press, 1987, p. 16
(9) The Internet, http://www.sim.org/islam
(10) Ibid.

copied from http://www.angelfire.com in consideration that the material of the summary from the book is less.

Jadikan Wisata Islami Yang Berkesan dan Memuaskan

Menyinggung masalah objek wisata Ulee Lheue yang ditutup pada malam hari karena disinyalir menjadi tempat perbuatan maksiat oleh segelintir orang, memang jelas merugikan usaha-usaha kecil yang biasa menjajakan barang jualan nya disana. 

Tapi sebenarnya hal ini bisa saja tidak terjadi andaikata adanya Fasilitas yang mendukung contohnya seperti Lampu penerangan jalan yang benar-benar dimaksimalkan. Karena tempat remang-remang memang akan mengundang perbuatan maksiat. Lalu sosialisasi tidak hanya kepada pengunjung tetapi juga kepada para pedagang. 

Satu kasus yang saya dengar bahwa Satpol PP/Wilayatul Hisbah telah memberitahukan kepada para pedagang untuk berjualan di tempat yang terang. Namun imbasnya, keuntungan mereka berkurang karena pengunjung yang lebih menyukai tempat yang gelap sehingga para pedagang pun kembali lagi berjualan di tempat yang gelap. Dan wilayatul hisbah pun bertindak tegas dengan memblokir jalan ke Ulee Lheue pada malam hari.

Pemerintah kota tentu harus berfikir keras agar tindakan ini tidak berdampak besar terhadap kesejahteraan pedagang. Mungkin solusinya dengan mensosialisasikan pedagang mengenai aturan-aturan yang berhubungan dengan Syariat Islam. Benahi fasilitas yang ada agar objek wisata Ulee Lheue benar-benar bisa menjadi objek wisata islami.

Kita harus ambil contoh dari Bali. Bali adalah kota wisata bernuansa Hindu dengan 1001 Pura. Kita juga tentu harus seperti itu menjadikan Aceh kota wisata bernuansa Islami dengan 1001  Mesjid. Dan Bali benar-benar serius menerapkan budaya hindu disana sehingga menjadi daya tarik tersendiri dari kota Bali. Terus, bagaimana bisa Aceh menjadi seperti bali dengan Wisata Nuansa Islami jikalau masih ditemui hal kecil seperti kasus di Ulee Lheue? Tentu ini menjadi PEER besar buat pemerintah walau terlihat hanya sebuah masalah kecil. Karena dalam konsep pemasaran pariwisata “Kepuasan pengunjung” adalah hal yang harus dicapai agar pengunjung merasa senang dan mau kembali berkunjung. 

Sekian Tanggapan saya mengenai salah satu artikel bapak Dr.Iskandarsyah Madjid, SE, MM yang berjudul “Wisata Islami Itu Harus Aman dan Nyaman”. Berhubung karena saya juga bergerak di bidang pariwisata khususnya Aceh (ANJOND.COM)

Lembaga Keuangan Mikro yang Mandiri secara Keuangan

Keuangan mikro yang berkelanjutan dilaksanakan oleh banyak lembaga komersial yang menyediakan layanan keuangan kepada masyarakat miskin yang aktif secara ekonomi dengan suku bunga yang memungkinkan mereka menutup seluruh biaya (termasuk biaya dana komersial) dan risiko, serta menghasilkan laba. Lembaga seperti ini meliputi bank, koperasi simpan pinjam, koperasi kredit, dan organisasi keuangan bukan bank lainnya.

Istilah lembaga keuangan mikro komersial  disini merujuk baik kepada lembaga yang menyediakan keuangan mikro untuk umum (seperti bank) dan lembaga yang hanya melayani anggota  (seperti koperasi kredit). Istilah tersebut merujuk kepada lembaga yang membiayai portfolio mereka dari tabungan yang dihimpun setempat, lembaga yang mengakses pinjaman komersial dan investasi demi-laba, dan lembaga yang memanfaatkan laba ditahan untuk membiayai pemberian kredit. Istilah tersebut juga meliputi lembaga yang hanya menyediakan keuangan mikro, serta lembaga yang menawarkan keuangan mikro sebagai bagian yang lebih luas dari jasa keuangan.

Menyediakan layanan kredit dan tabungan secara menguntungkan

            Metode kredit mikro yang disusun bagi perseorangan dan kelompok keduanya sudah terbukti efektif, ini juga dapat dikombinasikan delam lembaga yang sama. Meskipun demikian, bagi kedua jenis kredit mikro, lembaga keuangan mikro komersial harus membebankan suku bunga yang cukup tinggi dibandingkan dengan suku bunga kredit normal bank umum standar dalam negeri. Biasanya biaya operasional beberapa kali lebih besar daripada biaya standar industri perbankan dalam Negara yang sama.

            Menyediakan jasa keuangan mikro di banyak lokasi kecil dan tersebar adalah jauh lebih mahal dibandingkan dengan menyediakan jasa kredit dan simpanan yang lebih besar untuk nasabah bank di perkotaan. Tetapi, suku bunga atas kredit mikro yang dibebankan kepada lembaga keuangan yang menguntungkan – walaupun lebih tinggi dari tingkat bunga di bank – sangat menarik bagi debitur berpendapatan rendah di banyak Negara berkembang karena merupakan sebagian kecil dari bunga yang biasanya dibebankan kepada debitur dalam pasar komersial Non formal.

            Kredit mikro komersial disediakan untuk debitur yang mempunyai pengalaman dalam usaha jenis tertentu dan yang dipercaya dapat dan mau membayar kembali kredit dan bunga pada waktu yang tepat. Peran utama petugas kredit adalah membedakan antara pemohon yang tidak menjalankan suatu usaha dengan efisien, yang kemungkinan besar tidak mampu membayar kembali kredit, untuk siapa persyaratak kredit adalah tidak cocok, dan sebagainya, dari pemohon kredit yang layak memperoleh kredit. Dengan demikian sedikit banyak kredit  mikro komersial bersifat eksklusif dalam pendekatan.

Mengapa Permintaan untuk Keuangan Mikro Komersial Institusional tidak terpenuhi?

            Banyak yang bertanya apakah keuangan mikro sektor Formal adalah menguntungkan? Jawaban utamanya adalah kurangnya teknologi keuangan yang sesuai dan efisien dan kurangnya informasi umum. Semua pemberi pinjaman di dunia mengetahui bahwa keuangan mikro itu menguntungkan. Bukan kebetulan bahwa bank umum komersial Formal yang pertama menyediakan keuangan mikro komersial secara ekstensif yakni Bank Dagang Bali telah didirikan oleh sepasang suami istri yang memiliki pengalaman lama dalam pasar Non Formal dan peminjaman uang. Namun informasi akurat mengenai dinamika dan interaksi pasar lokal belum menjangkau banker, ahli ekonomi dan pembuat kebijakan.
            Kurangnya informasi yang dapat diandalkan adalah alasan utama mengenai tidak terpenuhinya sebagian besar permintaan keuangan mikro komersial sektor formal pada saat ini. sektor keuangan formal telah banyak mendapat nasehat yang keliru dari banyak pihak, temasuk mereka yang :

·         Berpendapat bahwa lembaga formal tidak dapat menyediakan keuangan mikro secara menguntungkan karena tingginya biaya transaksi yang harus ditanggung oleh lembaga.

·         Mengingatkan mengenai resiko institusional yang tinggi karena informasi yang asemetris, moral hazard, dan salah pilih debitur.

·         Menegaskan bahwa lembaga tidak dapat bersaing secara sukses dengan pasar kredit komersial non formal

·         Percaya bahwa keuangan lembaga mikro komersial bukan prioritas untuk dikembangkan karena pemberi kredit Non formal memenuhi permintaan kredit dari rumah tangga berpendapatan rendah dan biasanya bermanfaat bagi masyarakat miskin

·         Berfikir bahwa masyarakat berpendapatan rendah tidak mampu mengambil kredit komersial sehingga membutuhkan subsidi kredit pendanaan pemerintah dan donor.

·         Percaya bahwa sebagian besar ekonomi pedesaan di Negara berkembang tidak menghasilkan cukup bisnis untuk menarik lembaga keuangan formal.

Tapi sejak tahun 90-an informasi mengenai keuangan mikro komersial mulai meluas.

Mengapa Pemenuhan permintaan keuangan mikro komersial institusional penting?

            Alasana nya ialah pertama, keuangan mikro menyediakan jasa keuangan yang banyak dibutuhkan untuk memperluas dan mendiversifikasi kegiatan ekonomi, meningkatkan penghasilan dan memperbaiki dizi dan mengirimkan anak-anak mereka ke sekolah. Keuangan mikro memainkan peran penting, kalau belum dikenal baik dalam memajukan pendidikan dan kesehatan serta mengurangi pekerjaan oleh anak-anak.

            Kedua, Keuangan mikro penting karena telah membuktikan diri sebagai metode yang sangat kuat dalam membangun kepercayaan diri orang miskin. Lembaga keuangan mikro komersial menyediakan lebih banyak untuk masyarakat miskin dibandingkan dengan layanan tabungan dan kredit. Mereka memperagakan kepercayaan pada nasabah mereka. Kepercayaan diri nasabah yang berkembang dari kepercayaan seperti itu sedikitnya penting sekali bagi pengembangan usaha mereka seperti yang disediakan oleh fasilitas kredit dan simpanan. Pertumbuhan dan diversifikasi usaha setelah itu, selanjutnya membangun kepercayaan diri yang meningkat dan terus menerus bagi mereka.

IMF Resume Chapter 4

Microfinance Products
Products delivered by MFIs are many and include loans, savings, insurance and money transfer. Non Financial products such as training or consulting are also often delivered by microfinance institutions. This session analyses the main products actually offered by MFIs but as the industry matures additional products have been introducted by many institution.

A. Loans
The success of many MFIs can be indetified in their ability to combine successful practices from informal sector (moneylenders) into formal institutions. The extraordinary success of microcredit comes from its ability to replicate some of these features from moneylenders into more “formal” financial institutions lowering the interest rates applied. These interest rates still remain much higher compared to traditional banking loans due to the higher administrative costs of managing many small loans instead of fewer with large amounts.
The specific features that microfinance instutions should implement to deliver valuable service for their clients are listed below.
1. Fast access
Rapid loan approval and fast disbursement is crucial for clients and it is often the main reason why many people deal with moneylenders even at very high interest rates.
2. Clear, easy, and flexible conditions
It is important to provide the credit service at convenient conditions for the clients. Transaction costs, which include transcactions costs (to pay the instalments or get the money) or time away of work, throughtout the life of the loan must kept low. Loans should also not be strictly linked to a specific purpose.
3. Permanent services
Credit services must be provided on an ongoing basist, not only for a limited period of time, the lack of this requirement is the main shortfall of many project that despite their effectiveness do not have the goal of delivering financial services an ongoing and sustainable basis.
4. Altenative collaterals and collateral substitutes
Poor people often lack traditional collateral. To vercome this obstacle many MFIs use other kinds of collateral known as collateral substitutes and alternative collaterals.

B. SAVINGS
MFIs typically offer two types of savings accounts: voluntary and forced. Voluntary savings replicate the savings services provided by traditional commercial banks while forced savings serve as collateral for the loan. These accounts do not necessarily provide a return on deposit and are kept by the institution until the balance of the loan has been paid off.
Liquid accounts are flexible saving products often with no or small minimum balance but they usually do not provide or pay very little interests. Time deposit accounts, on the other hand, usually offer higher interest rate but clients have to leave their money in the account for a specified period of time.

C. MICROINSURANCE
Low-income entrepreneurs, just like anyone else, are vulnerable to risks, such as illness, injury, theft, death, accidents and flood. This is why financial products to mitigate the effects of these risks are valuable for them. Insurance is a financial service that some MFIs are starting to add to their portfolio to respond to this need of protection. Providing savings and insurance services besides credit make the MFI a full service financial institution delivering microfinance, i.e. a full set of financial services to low income people.
To directly provide insurance MFIs need a special license and the requirements to be granted such a license are usually very strict: governments control insurance companies for the same reasons why they control the financial soundness of deposit taking institutions, the protection of the clients and the stability of the system. As the majority of the MFI do not satisfy these conditions, there are alternatives to the direct provision of insurance and the most common is a partnership with an existing insurance company. Insurance companies may not offer their products directly to poor people because they lack experience in this market segment: the MFI can fill this gap and work as an intermediary between the insurance company and its clients.
Insurance products to the target group of microfinance institutions must be designed to fit their specific needs and protect their specific risks: they may include health insurance, livestock insurance and crop insurance. At present few MFIs are offering insurance services but as the industry grows they start to be included among the set of products offered.

D. MONEY TRANSFER
Money transfer service is another critical financial service: the business of remittances, i.e. the money that emigrants send home to relatives, is growing strongly and is often managed by informal arrangements with high charges and high risks. Depending on the local regulation and costs this service can be delivered directly or in partnership with money transfer companies. MFIs owns the competitive advantage of the relationship with their clients and such service can also be linked to other products or can be taken into account when calculating the repayment capacity of each client. There is the possibility to link remittances with credit products when remittances are not used for consumption but for production purposes, combining the different sources of funds.

A study by Manuel Orozco showed that in 2002 the average fee to send between US$150 and US$300 from the United States to Central America was on average 7.35 percent the value of the amount sent, to which must be added average additional costs of about 2.3 percent. The total average percentage paid on a transaction of US$150 was about 18 percent. These high charges are primarily due to a low competition in the market and this is why MFIs started to provide, together with the other traditional financial products, this valuable service for their clients.