Microcredit is a small loan given for the purpose of starting a usually very grass-roots small business. It is a relatively new concept and a huge help for local development in the Third World countries. One of its pioneers, the Bangladeshi "banker" Muhammad Yunus, will now receive the Nobel Peace Prize for spreading the idea. Whereas it has long been though that development can be achieved by giving alms to the poor, now microcredit challenges this by actually imposing capitalist concepts on the development aid. And it works too.
Myself no fan of capitalism, I have to admit that giving a loan for the poor to start a productive business is much better than giving continuous aid and no work. Every man has the human need to be able to produce and sustain himself. Microcredit is enabling him to do just that with his dignity intact. Small loans are giving power to the people. This is especially important for women. In many cultures it has been impossible for women to start businesses and banks have literally refused to give them loans. Microcredit enables women to run their businesses independently of their husbands and fathers. Studies show that where women run their business, earned income goes to family expenses, not for instance to alcohol.
The Nobel thus goes to the right address...Congratulations to the winner!
posted by Emilia.kk @ 5:21 PM
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