I dont agree with dearth of micro entrepreneurs. In chennai there are lot of hawkers who need investment to go and buy vegetables. they go for loaning money from local money lenders who charge exorbitant rates. I am sure there are lot of people who need micro credit and let us agree that our banks and system are the culprit. yunus even lent it to homeless people who lead a life begging. are we saying we dont have enough beggars in India ? total BS.
Author has a good idea and I am sure the micro-credit has its own advantages but if we look at China, creating employment has pulled large amount of population out of poverty.
i think its naive to think that poverty can be tackled thru one size fits all approach. what yunus has done does fit thousands of poor bangladeshis, esp women while it may not fit to many others. based on some of the other comments, clearly many readers are only aware of the "credit cards" and "bank loans" as credits. while yunus, with loans like $27 has provided a more tailored approach to people at the grassroot levels. job would be good anyday, but to thousands of these women, unskilled women, the microcredit has been the most viable option.
Debt or credit can only help entrepreneurs. For others we do need job. If we want people to help themselves, we should first attempt to convert them into entrepreneurs. Only then theycan use debt orcredit.
The elaboration on the importance of jobs to microcredit was amazing.Truly the credit can be lent to someone with better managerial capabilities rather than to someone who thinks of earning a daily bread.Surely thought has to be given regarding this issue.I would even be happy if you hint me on more labour intensive low skill sectors as you've already mentioned with the light manufacturing, garments and tourism. Keep the good work on. Koundinya.V.L.N
I guess there are some advantages of microcredit as well and we need to exploit that. However one would completely agree with the author, the way forward is more creation of jobs that require less skills. The cuurent economic growth is more like in Brazil (where income disparaties are high) than china where income disparaties are less.
your views betray your strong anti-poor attitude.Microcredit gives money and self-respect whereas your big enterprises give only a salary.Big enterprises help the already rich upper castes mainly, whereas microcredit helps the vast majority of lower castes...
RE:microcredit
by Solomon JP on Jan 28, 2007 05:55 PM Permalink
Ofcourse you must not forget the very rich 'investing' and harvesting a good return from microfinance institutions. You havent been involved with micro-credit it seems... IT DOES'NT GIVE "SELF-RESPECT" as you claim, there are only anecdotal stories reeled out.. No one can build an enterprise in business infrstructure starved india, with such low levels of investments and at such high levels of intrest rates 24% and above. Try building a business with that kind of interest rates, may be the likes of CK Prahalad will spin another story, to say how by selling soap satchets to the poor can help eradicate poverty- or even better, how the poor can sell banannas to each other and by some magic get rich - YOU NEED REAL ENTERPRISES THAT WILL CREATE JOBS and enterprises that will create enterprise and wealth in poor regions- NOT WHEELING AND DEALING WITH MONEY ALONE. Sure a lot more can improve in terms of finacial services - and one can even build viable businesses of microcredit as we can see and even win national and international awards. But can you see the emperor has no clothes?
