A new study from Cato well worth a look- A Second Look at Microfinance: The Sequence of Growth and Credit in Economic History;
"History—the history in the “north” of formal and informal credit use for business investment, and the history of formal and informal credit use for consumption—has a lot to teach us about the credit-for-everybody notions of microfinance. Its lessons might bring our expectations of microfinance more into line with reality. For the economic history of the rich nations strongly suggests that
• earlier forms of microcredit never played a significant role in business start-up or small business development,
• the first efforts at democratizing financial services were almost entirely savings and “thrift” based,
• economic development in fact came before (or at best alongside) the movements to democratize financial services, and
• when credit for the poor did come along, it followed the savings movement and developed almost entirely in relation to consumption.
Related;
Build a mega seaport to revolutionise economy-Prof Yunus
Yunus port upgrade plan sparks Bangladesh protests
"Yunus says the port of Chittagong, which handles 80 percent of Bangladesh's foreign trade -- should be upgraded to a continental seaport in the nation's greater economic interest...
Yunus' plan to redevelop Chittagong drew immediate protests from political parties as well as rights and environment groups, who said the project would cut jobs and workers' rights and endanger national security.
The port lies close to the country's main naval base, an airport and other key installations, they said. Dhaka University Professor Serajul Islam Chowdhury said "protection and expansion of capitalism is the ultimate goal of Yunus as all of his projects are business-oriented and deeply linked to capitalism".
"If he becomes a redeemer, he will be one for the capitalists, not for the poor," Saturday's Daily Star quoted Chowdhury as saying.
"Yunus entering politics proves that poverty alleviation is not possible through micro-credit, rather it requires structural and legal reforms," said Anu Mohammad, professor of economics at Jahangirnagar University, near Dhaka.
"His mission has changed from poverty alleviation to opening the port to foreign control," he told reporters.
1 comment:
In September I would have speculated that MS would not be treating a first-tier Orange County equity investment like Blackstone this way. But as the Fall has progressed and the potential liability increased it is clear that banks are willing to risk even their largest clients to wriggle away from some of these deals.
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