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Well, last time I checked microlending had a repayment rate over 90%, so it certainly must have some impact. If it wasn't effective in fighting poverty, I doub
by tsally 17y ago
Well, last time I checked microlending had a repayment rate over 90%, so it certainly must have some impact. If it wasn't effective in fighting poverty, I doubt you'd see such a high repayment rate. Will microlending alone solve the problem? No. But it's one of the best tools we've got so far.
- trjordan 17y agoDid you read the article? The point seemed to be that it certainly smoothed out some peoples lives, it did not actually have a measurable effect on the wealth of either their families or their communities. It struck me as something closer to credit cards for all instead of business loans for all. When you're poor, credit can help carry you through periods where you might lose a lot due to unlucky circumstances, but it will not actually increase your productivity or efficiency. Repayment rate has nothing to do with long-term social impact.
- tsally 17y agoDid you even read my comment? I specifically addressed this when I said: "Will microlending alone solve the problem? No.". I simply argue that microlending is one tool out of many that we should use. Indeed, you seem to agree with me: "credit can help carry you through periods where you might lose a lot due to unlucky circumstances". Allowing families to hold onto a lot of resources they would have lost certainly is helping to fight poverty.