Headline April7, 2012 / Misery-Microfinance-Murals

MISERY   MICROFINANCE  MURALS

Respectful dedication to all poverty ridden in the world

For the last 3 days we suffered with the unfortunate! Shared what we could with them. The tragedy of the world is that we understand not, the fundamental truths of economics. Samuel Brittan is right : We pursued the noble objetive of "full employment" by the wrong means".

Goldman Sachs!!!?? Oh, dear, God! Mercy! Just read what Matt Taibbi of Rolling Stone's Description of Goldman Sachs syas: "Great Vampire Squid!!!" Positing that this financial institution is wrapped around the fact of humanity, sucking out all life. And these very words are used also, by the very people who work at Goldman Sachs. 

However, the ground reality now, is even more complicated. Writer David Roodman, who analysed the experience of hundreds of micro credit clients over several years and published his findings in a book titled "Due Diligence: An impertinent Inquiry into Microfinance , highlights one critical insight: 'The best estimate we have of the impact of microcredit on poverty among clients is zero." 

But Nobel Laureate, Prof Yunas is still passionate about microcredit as ever, 'I don't think it could have spread so rapidly if it did not help the poor people!!??"

The Founding Visions was always to fight poverty with loans as small as 25 dollars by organising borrowers into small member groups. So effective was the model that it is now replicated across the world. 

Grameen organised small groups, and got the loan jointly owned and then smashed the choke points of the loan sharks who had long exploited the deep poverty all around. Grameen has a remarkable repayment rate of 98%. But, but in many microcredit programs, interest rates can top 60% on a 6 month loan. The operating income of Grameen exceeds 100 million dollars. Therefore Grameen will always be cited as a proof of microcredit's giant potential.This obviously maybe so but other world thinkers fell that savings is a much better anti poverty strategy. With many thanks to !WOW!. For this research we continue this sophisticated post. Don't miss!! 

Good night and God bless.

SAM Daily Times - the Voice of the Voiceless