The first ever major controversy surrounding Microfinance seems to have gained steam with Muhamma Yunus, the Nobel laureate, openly challenging Carols of Compartamos bank. The debate is over whether the capitalist or the socialist approach is the right model in the step to alleviate poverty.

Compartamos (which means "Let's share" in Spanish) a prominent Mexican MFI is charged with exploiting the poor with their loans that carry an exorbitant annual interest rate of 100%. While the founders of the MFI claim that such lending rates are necessary in the wake of high cost of capital, and needed to cover the high operational costs of lending and maintaining lower denomination loans, one wonders how this lending rate is almost thrice that of other MFIs.

The Nobel laureate who pioneered the Microcredit movement three decades back challenges this model and dismisses this as a model that would eventually be a thing of past just as money-lenders have faded away. But then I wonder why the borrower still flocks to Compartamos if he/she thought he/she was being exploited. Is it lack of other cheaper borrowing options? If so then why don't we see likes of Grameen bank, who consider microcredit as a philosophy and not look at it with just the financial bottom-line, lending at lower interest rates in Mexico?

At the risk of sounding a socialist, I second the Grameen school of thought. I see MFIs as social enterprises and not just a traditional for-profit firm going by willingness-to-pay. In my opinion, this defeats the very purpose of microcredit. On one hand while I believe in market forces and existence of invisible hands, I fail to see how this is the right approach to lift oneself out of poverty.

Catch a glimpse of this debate on PBS Video. You may also want to peruse on the two distinct school of thoughts here.

~ Santosh

 


Comments

Thank you for giving the awesome suggestions for us to order. <a href="http://www.hervelegerlongsleevedress.com/">Herve leger dress</a> belong to famous french brand. <a href="http://www.hervelegerlongsleevedress.com/herve-leger-bandage-c-1145.html">Herve leger bandage</a> itself means participants wear official clothing to attend important ocaasions. Because each place of <a href="http://www.hervelegerlongsleevedress.com/herve-leger-double-strap-c-1146.html">herve leger double strap</a> is appressed to skin and carves out womens slim shape, so it is also called "<a href="http://www.hervelegerlongsleevedress.com/herve-leger-high-neck-c-1147.html">bandage dress</a>". From 2007 summer, Max Azria designed first cocktail <a href="http://www.hervelegerlongsleevedress.com/herve-leger-long-sleeve-dress-c-1148.html">herve leger long sleeve dress</a>, then <a href="http://www.hervelegerlongsleevedress.com/herve-leger-round-neck-c-1149.html">herve leger round neck</a> company made cooperation with adult garments wholesaler and bring these <a href="http://www.hervelegerlongsleevedress.com/herve-leger-single-strap-c-1150.html">herve leger single strap</a> to all over the world. Many hollywood stars love wearing <a href="http://www.hervelegerlongsleevedress.com/herve-leger-skirts-c-1151.html">herve leger skirts</a>, which can suit with <a href="http://www.hervelegerlongsleevedress.com/herve-leger-strapless-c-1153.html">herve leger square neck</a> and jimmy choo pumps pefectly. Except various dresses, herve leger bcbg company also involved in other bussiness. However, most famous is always their <a href="http://www.hervelegerlongsleevedress.com/herve-leger-swimsuit-c-1154.html">herve leger swimsuit</a>.

WYF

Reply

Thank your for sharing useful purchasing ideas with us. Christian louboutin sale store mainly sales cheap exquisite christian louboutin 20 years. All our red buttoms heels are 2012 most popular studs footwear christian louboutin 2012. No matter how long it pasted, I do trust the leader position of christian louboutin ankle boots in fashion world will never change. Stylish and special christian louboutin bags not only make women more charming and eglegent, but also show mens unique charms and personal style fully. Our online shop supply you christian louboutin evening with new arrive, top quality and discount price. So 2012 christian louboutin flats studded bridal shoes must be your best choice for wedding. No matter you live in any place in the world including uk, you can buy free shipping christian louboutin high boots shoe or men flats on our website, we will send those red bottom shoes with 3-8 days fast delivery christian louboutin pumps, christian louboutin sandals outlet have no custom tax, accept dropship, so what are you waiting for christian louboutin slingback? http://www.christianlouboutinsalesaustralia.com/
WYF

Reply
08/01/2012 22:52

Excellent! I admire all the helpful data you've shared in your articles. I'm looking forward for more helpful articles from you. :)

Joseph Aidan
www.arielmed.com

Reply
08/16/2012 19:55

http://www.fakeraybansn.com/

Reply
08/19/2012 23:13

Fashion seasons come and go just like the regular ones. You should always try to be up to date with the latest styles of barbour jackets. Which barbour jacket is the best choice for the coming season? Our barbour sale uk shop is absolutely the best place for you to get the newest and great jacket with big discount. In barbour online store, you can see that a wide array of colors and styles mens barbour jackets and womens barbour jackets are available for you. Each of barbour jacket in our barbour store would give you a gorgeous appearance that is hard to come by. So what are you still waiting for? Come to get the cheapest barbour jacket for yourself! In barbour uk, barbour sale jackets combine the best of classic and contemporary design. They mix innovative materials with craftsmanship and attention to detail. Our barbour online shop would offer your whatever you need to go about your life with confident.
http://www.barbourjacketsshop.net

Reply
08/21/2012 02:18

Attention, please. Good coast are here. Get your <strong><a href="http://www.womendressuk.biz/">coast clothing</a></strong>,<strong><a href="http://www.womendressuk.biz/">coast dresses</a></strong> and <strong><a href="http://www.womendressuk.biz/">coast dress</a></strong> from the coast online. There are <strong><a href="http://www.womendressuk.biz/">occasion wear dresses</a></strong>, <strong><a href="http://www.womendressuk.biz/">cheap bridesmaid dresses uk</a></strong> and <strong><a href="http://www.womendressuk.biz/">Coast Bridal Dresses</a></strong> for you. The <strong><a href="http://www.womendressuk.biz/">occassion dresses</a></strong> and <strong><a href="http://www.womendressuk.biz/">Coast One Shoulder Dress</a></strong> are good, too. All with good quality. You should go.
http://www.womendressuk.biz

Reply



Leave a Reply


Development and Growth Blogs - Blog Catalog Blog Directory