I saw a delightful news report on the winner of the Nobel Peace Prize.
In a semi-accurate summary, an economic professor had the idea of a bank that lended "micro-loans" to the poor, in Bangladesh. It has been a major success for everyone involved. Some particulars:
-- The typical loan is $100
-- The usual borrower is a married female trying to pull her family from poverty
-- The default percentage is an astounding 2%, though the percentage of borrowers who improve their lot is approximately 50%
-- The phenomena is affecting social change for woman as they have more influence in the decision-making of the household
Very cool stuff... especially that the Nobel committee recognized the effort. Several pundits have noted that this grassroots effort is much more successful than any number of international-aid agencies.
1 comment:
I saw a newsclip on that as well. Isn't it amazing how often the smallest of things can make the biggest change. Most banks wouldn't consider loaning anyone $100, let alone high risk situations. Oh goodness, that money might eat into their billion dollar profits. Imagine if more banks set up similar type programs here in North America. What a difference a $100 or a $1000 might make to a few families. Picture the family who is living on the street and needs the money for a deposit on an apartment....what a great investment.
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