Microcredit and social impact: what do Oikocredit and Gulliver’s Travels have in common? 

What do Oikocredit and Gulliver’s Travels have in common? It may seem unusual to compare Oikocredit, a pioneer in social impact microcredit, with one of the most significant novels of the 18th century, Gulliver’s Travels, written in 1726.

However, the origins of inclusive finance—and especially microcredit—date back to that era.

Gulliver’s Travels: More than just a travel book

The novel by Irish writer and clergyman Jonathan Swift tells the adventures of Lemuel Gulliver, an English surgeon and navigator who travels to fantastical lands.

Each destination serves as a vehicle for Swift to critique various aspects of society, politics and human nature.  

More than just an adventure tale, Gulliver’s Travels is a sharp satire of the society of its time, filled with irony and sarcasm.

Critique of social inequalities  

Beyond this novel, Swift wrote essays and political pamphlets, most notably A Modest Proposal, written in 1729, which is considered one of the most satirical and provocative works in world literature.  

Through his ingenious narrative, he addressed themes such as poverty, social inequality and society’s lack of empathy for the less fortunate.  

Who was Jonathan Swift?  

Jonathan Swift (1667-1745) served as Dean of St Patrick’s Cathedral in Dublin from 1713 to 1745 and was an influential figure in the literary and political landscape of his time.

His style was marked by irony and biting satire, offering a critical perspective on human nature and institutions.  

Swift was a pioneer in creating a lending system that lasted over a century and, at its peak, provided credit to one-fifth of Ireland’s population.  

Thanks to book sales and his position as Dean, Swift accumulated considerable personal wealth, part of which he wanted to dedicate to helping people with low incomes. 

How did the idea of microcredit begin and what else do Oikocredit and Gulliver’s Travels have in common?

At some point in the 1720s, Swift created a fund with £500 of his own money and began offering interest-free or low-interest loans of between £5 and £10, aimed especially at “industrious artisans with low income.”

Swift’s funds had two distinctive features that made them structurally almost identical to modern microfinance:  

• First, borrowers had to make partial repayments weekly.  

• Second, to obtain a loan from Swift, applicants needed two people to vouch for their good reputation.  

As you can see, Oikocredit and the author of Gulliver’s Travels have many things in common!

The seed planted by Jonathan Swift, a microcredit pioneer  

Other philanthropically inclined individuals in Ireland immediately drew inspiration from Swift’s example. Two years after his death, in 1747, the Dublin Musical Society established a loan fund, using the proceeds from their performances to lend money “under the same system as Dean Swift’s.”  

Over time, the credit project became the society’s main activity. By the late 1760s, it was granting loans to more than 5,000 people.  

How did the microcredit story continue?  

Below, you can find other key milestones that led to the development of microcredit as we know it today—one of Oikocredit’s pillars alongside sustainable agriculture, renewable energy and community-focused initiatives.  

The history of microcredit

• 1720s – Jonathan Swift, author of Gulliver’s Travels, introduces small loans to people with low incomes in Ireland, laying the foundation for microcredit.  

• 1840s-1860s – Credit cooperatives emerge in Europe. Friedrich Wilhelm Raiffeisen and Hermann Schulze-Delitzsch establish cooperative banks in Germany.  

• 1900s – Small loan systems expand in India and Latin America, supporting rural communities.  

• 1940s – Community lending programmes spread across Bolivia, Peru and Colombia.  

• 1950s-1960s – Government-backed microfinance programmes appear, including India’s rural credit cooperatives.  

• 1975 – Oikocredit is founded in Amersfoort, Netherlands, during an ecumenical church meeting, introducing ethical investment in social impact initiatives.  

• 1971 – Microcredit programmes launch in Brazil to support small entrepreneurs.  

• 1976 – Muhammad Yunus founds Grameen Bank in Bangladesh, pioneering modern microcredit.  

• 1980s-1990s – NGOs and financial institutions globally adopt microcredit. The World Bank and the UN support microcredit programmes.  

• 1997 – The first Microcredit Summit is held in Washington, setting global financial inclusion goals.  

• 2006 – Muhammad Yunus and Grameen Bank receive the Nobel Peace Prize for reducing poverty through microcredit.  

• 2010s-present – Digital microcredit emerges, using mobile banking and fintech to expand access. 

1975: The arrival of Oikocredit  

The idea of Oikocredit was born in 1968 during a meeting of the World Council of Churches, when politically engaged young people from various sectors called for the creation of an ethical investment channel to promote peace and global solidarity.  

At the time, the Oikocredit concept was both innovative and controversial. Amid the global turmoil of apartheid in South Africa and the Vietnam War, church members sought to ensure that their investments fostered peace and contributed to a more just world.  

Thus, in 1975, the Ecumenical Development Cooperative Society (EDCS) was created. EDCS provided churches and related organisations with their own alternative investment channel.

Since its inception, Oikocredit has aimed to promote social justice by offering financing to businesses led by people in vulnerable situations.

Oikocredit and the vision of the author of Gulliver’s Travels are finally aligned. 

Oikocredit’s vision and mission 

Oikocredit is guided by the principle of empowering people. Our experience shows that the most effective and sustainable way to support communities is by providing them with opportunities.  

Our vision  

We envision a fair and global society where resources are shared sustainably, and people have access to opportunities for a dignified life.  

Our mission

Oikocredit believes in the transformative power of money. That’s why we provide financial services and support organisations to improve the quality of life for people with low incomes and their communities in a sustainable way.  

Oikocredit’s strategy  

Oikocredit’s 2022-2026 strategy focuses on strengthening local communities to achieve meaningful social impact and fostering people’s resilience.  

It is built on three key pillars: providing comprehensive community support, promoting a global movement and strengthening connections between partners, members and investors. These pillars enable us to drive positive change and explore new ways to empower communities worldwide.  

Oikocredit’s impact  

Oikocredit will celebrate its 50th anniversary in 2025. In 2024, we reached 53 million people in over 30 countries, managing a development investment portfolio of over EUR 1 billion.  

To achieve this, we collaborate with about 500 partner organisations, working locally to maximise social impact on the ground.  

Among these 53 million people, 87% are women, and 65% live in rural areas across Africa, Asia, and Central and South America.  

Oikocredit goes beyond financial inclusion by offering training and financial credit. We also work in sustainable agriculture, renewable energy and community-focused areas such as healthcare, education and housing. You can learn more about our impact by reading our 2024 Impact Report.  

Social impact and dividends: Investing in Oikocredit  

Oikocredit offers an investment model through shares. You can start investing with EUR 200 per share. There are no opening, cancellation or maintenance fees. But like any investment, it carries certain risks that you can read about here.  

The money from individuals and institutions investing in Oikocredit is used to provide capital or loans to our 500+ partner organisations in Africa, Asia, and Central and South America.  

These organisations work directly with the 50+ million people who benefit from Oikocredit’s mission.  

Final borrowers repay their loans to partner organisations, which in turn repay Oikocredit.  

This allows us to offer annual dividends of 0-2% to our investors, depending on circumstances. Here are some of the most frequently asked questions about investing in Oikocredit. 

Do you want to make a difference?

Are you an individual or institution looking to make a difference by investing in people with low incomes and disadvantaged communities? Do you want more information about Oikocredit? Would you like to discover more stories such as what Oikocredit and Gulliver’s Travels have in common?  Sign up for our newsletter. 

By investing in Oikocredit, you help create opportunities for people with low incomes in over 30 countries. That’s investing in people and generating real social impact.  

Because money has the power to transform the world!