Why Microcredit is a Fraud

I just got through reading this article on Yahoo news about how bankers want to offer third world nations Microcredit. This form of credit is given to those who would otherwise not be able to apply for loans at conventional banks. Since 1/6 of the world's population is in poverty, it is believed that giving them Microcedit can reduce poverty and create peace. Muhammad Yunus has been given the Nobel Prize for peace because of this:http://news.yahoo.com/s/afp/20061013/bs_afp/nobelpeacebanking

The Reality

The concept of Microcredit is simply a method that the NWO bankers can use to enslave the third world countries. Think about it. Most of the first world countries are full of populations that are already in debt. In the US, the typical American owes $10,000 in credit card debt or more.

Because the third world population outnumbers the first world population, they are a threat to the NWO. If they were able to gain economic stability, they could fight against them economically. Since most of these peope can't get loans from multinational banks, Microcredit will be used to put these people into debt, just like the populations of the first world. They will all be slaves to the NWO, and they can push forward with their plans for World Government.

 

MICROCREDIT IS FOR REALLY POOR PEOPLE

Besides the average microcredit loan is NO INTREST(that's why the CC. bill is like that) and is around 200$

Some people don't even have 2$ and if they had 200$ they could start a very small business with it(in 3rd world countries you can(I know))

And also that seems like one of the best ways to get people out of povertry...I mean it's like the "Give a man a fish and he eats for a day, but teach a man how to fish and he eats for a lifetime"-in other words giving 2$ to that poor person on the street is only going to help him eat lunch...but giving him more(alot more probably 100$-500$) will allow him to start a street business(that's a start) and keep him fed.

 

First of all, please gather some information before posting these irrational comments :

The reality is almost 95% of all the peoples repaid the loan completely and virtually got out of the spiralling world of poors. I myself did a field research on Microcredit in a rural area of Bangladesh, the place Dr Yunus is from, and personally thought that he deserved a Nobel Prize 10-12 years ago. Let me tell you the story of my research :

We were a team of 4, on a mission to carry out a field research on Microcredit Programs in Asia. Comilla - a rural part of Bangladesh was chosen to be our base, as we wanted to feel the real effect that this program is having on the really poor people. Off we went and on our way to the village, we crossed bamboo bridges (bridges on a single bamboo, basically laying across the ponds without any support); we went through muddy fields (deep enough to drown our knees) walked though hundreds of acres of fileds, as if going towards an uncertain world which was untouched by civilisation. It was all about wonder when we finally arrived in there.

It was a very small village, populating around 3000-4000 residents. All of them were very poor, but all of them were very happy. In a place where electricity was unknown to the people - I was surprised to see the villagers so happy. Then we slowly talked to them, and found out that they have eternal respect for the microcredit programs. Why? Because the ones who have undertaken them were no more poor. Beggers were owners of dairy firms, Electricians were the owner of electic shops, Labours were turned into farmers - all in all the blessings of Microcredit changed the lifestyle of the people completely. When no one didnt know they exist, microcredit came and changed their life forever.

When you hear that Billions of Dollars are spent on these poor peoples per year - you know where the money comes from? You know how the total amount keeps on increasing every year without any foreign donations and all? Because all the profits derived as interests are put into the microcredit programs - and it was the revolutionary idea of Dr Yunus - that no one would be left unlucky and everyone (that is considered poor of course) could benefit from the programme.

To be proud enough to say, Dr Yunus is my teacher, I know him personally, and I think if we had more 6-7 peoples like him - the whole world would have been so much a better place to live in.

So HAIL Dr Yunus, HAIL all the people who are bypassing the gimmicks and glitters of the world - and working out their lives to change the fortunes of these poor, unfortunate peoples. They really deserve a better life.

 

You're joking right Tesla?

You don't actually believe that crap that micro-credit is a tool to enslave the poor do you?

 

If you start offering microcredit to every poor person you will basically enslave the ones that won't make something productive with it.

On the contrary, if a person needs that money to start a business and not to buy food or basic things, it's one of the best ideas ever.

 

Then its one of the best ideas ever - because over two decades the major microcredit programs have experienced a phenomenal return rate of 97% success. That really beats the odds doesnt it? and the amount of money being invested?Just one bank in Bangladesh over the last fiscal year - $7 Billion of investment. There are many fail safe schemes under which if a person fails - s/he is viable to get a emergency sum to help promote whatever s/he is doing.

When I heard the rate of success - I figured that the poors could be very trustful and they themselves could easily pull them out of the poverty barrier; which microcredit programmes around the world; has ensured to millions.

 

Me too (but I didn't know him personally)

I mean a person like him comes around once in a lifetime...also (just to add to this) He was offered a seat(I forgot what it was) in the Bangladeshi government BUT he REFUSED it for a good reason - he said he was not neutral..and that a neutral person had to run the job...you don't find that kind of person often...do you?

Before the end of the this post--do you REALLY need that new, shiny {insert thing you wanted here}

 

Tesla you are a genius for seeing something for what it really is ... this

is just another way of enslaving the poor and they gave the person

who helped fuel it's growth a Nobel peace prize.

 

Yunus was fantastic and helped the poor tremendously.
But as with anything some may take advantage like recently there was controversy with some microcredit companies who were charging 25% interest per yr...more than conventional banks http://www.cnn.com/2006/BUSINESS/11/13/boardroom.akula/

 

All nice on the surface but you forgot to ask a simple question: WHY were they poor in

the first place ? Once you get the answer to this you will understand why Tesla

is correct in his observation.

 

Hi I am from Bangladesh . Doctor Yonus's microcredit did a tremendous job in our country- also in other countries. The model is now being used other NGO's in our country and elsewhere also.

Thouh some bad examples are there most of the cases are successfull and it bringing very good result.



The program was to given the poor loan for no security . esp to rural women. None even the rich brother will give any poor brother any loan to start a business as he knows he has no power to retun the money let alone poor women.


Younus microcredit is for those esp to rural women . With the money they start busienss and play important role in economy.

I know almost in every vilages in Bangladesh women hv the chance to get loan from any of the NGO's and start something.

With that small money a lot of examples are there women entreprue become rich.

Besides economic contributes there are so many other things we need to consider like poplation control etc

 

Still all very nice ... but did you ever ask WHY was there poverty to begin

with ?

 

Yes a lot of things involved. This poverty rooted very deep

Most important thing is not enough natural resources. but being ruled by foreiners hundread of years, just 35 years we are rulling ourselves.

present problem is different

 

A lot of factors determine poverty...which definitely doesnt mean any word of tesla is correct...Even if the poor people are paying 25% interest...they have already turned theur fortune in the process and most of all -- almost 97% of all the recievers of loan have already pull themselves out of the debt - and also from poverty..So whatever baseless theories are there - i really dont give a damn. Neither does any of the educated persons in the world - who understands a word of economics. I think its a shame to question a policy - which can turn the fortunes of the poor.

 

I know why...."they" lost their money to an unfortunate event or the bank was so cold-hearted they didn't care if they got poor

I mean if people had thought of no-INTREST banks there goes half of poverty(we ALL KNOW interest is "evil")

Now all micro-credit is doing is REVRSEING POVERTY...giving those who suffered it a 2nd chance

In fact....I'm pretty sure after what a REALLY poor person has experienced he/she can't think of anything "bad"(except for a few--but that will always happen with everything)...imagine one day you lost ALL OF YOUR money because you made an intentionally bad move(gambling..etc(but don't be fooled MOST poor people lose their money in different ways)...would that be enough of a lesson for you???

[Start Example]
Example:
You were very poor...a bank offered a no-interest loan of [enough money to start one of those street businesses]...would you
a)Spend the money like crazy
b)Just spend it on food and etc.
or c) ACTUALLY do something and grab that slow train out of poverty

I'm pretty sure you would choose c
[End Example ]

NOW THE ONLY EXCEPTION TO WHAT I SAID WAS THAT:
A bank could STILL BE COLD-HEARTED AND PUT THE ALREADY POOR PERSON INTO DEBT and ADD A PART TO THE CONTRACT THAT SAYS YOU WILL HAVE TO PAY INTREST UNDER "CERTAIN" CURSTANCES
AND IF that's what you mean you are correct.....

I'm pretty sure that answered your question..BUT it proved that micro-credit does help the poor(it's my opinion (and probably fact), so I'll stick to it)

 

"Give a man a fish and he eats for a day, but teach a man how to fish and he eats for a lifetime."

That quote doesn't mean "Give him $2 and he eats for a day, give him $200 and he starts his own business". It's saying that you need to teach him a useful skill.

Giving someone more money doesn't fix anything if they have no talent or business skills. If I gave you $200 to blow on Adwords and you've never used it before, it would go to complete waste because you don't have experience with it.

 

Couldnt agree more..Thats why the microcredit firms are running training institutes simultaneously with the banking scheme to make sure the money isnt misused or misplaced. So far they have succeeded immensely as almost all the starters of the microcredit loans are small entrepreneurs now, most of them have their small niche in society and moreover - a place where they can gradually rise with determination. Thus we can eradicat poverty forever.

 

Now there are things bigger than microcredits for some countries. In some places of Africa, if you give $1000 to a skilled person in a poor country you are ignoring the fact the diseases are everywhere and they don't have even the basic things needed to live as a human. As some said in this topic, the money has to come along with education and help from the people giving the money.

 

Either way microcredit still helps when used correctly....
BUT Adwords is completely different(but the general idea is valid)

...I guess I did a little too much with that post....but have you ever been to a REALLY POOR country... I mean you have to go there and stay there for a month to understand how it "works"....

And I haven't seen telsa come back here in a while...I wonder why...