Microfinance

The Myth of Microloans – Counter Punch

Important Note – The Below article is taken from the American Leftist Journal Counter Punch and was published in 2006. Indiamicrofinance.com does not endorse or adhere to the views or opinions expressed in the article posted below.This is purely an information site and this article has been posted  as it represents a different opinion.

By ALEXANDER COCKBURN

The committee that gave Henry Kissinger the Nobel peace prize has given it this year(2006) to Mohammed Younus, the economist who put the word “microloan” on the map with the Grameen Bank in his native land of
Bangladesh. That’s progress of a sort. But in terms of hot air, any sentences linking “peace” with “Henry Kissinger” aren’t immeasurably more vacuous than the notion that microloans can help–to use the language of the Nobel Committee’s citation “large population groups find ways in which to break out of poverty.”

Throughout the late Eighties and Nineties, in the verbal currency of first-world do-gooders, “microloans” became one of those magically fungible words, embedded in a thousand Foundation and NGO annual reports, like “sustainable”. What could be more virtuous in terms of prudent philanthropy than giving very small loans to very poor women? Microloans breath healthful uplift, as divorced from the sordid world of mega-loans (though not, it turns out, mega interest rates), as are micro-brews from Budweiser.

Read more – Counter punch

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