micro machines...

Right now Microfinance is sexy. It’s happening all around the world as the way to provide the poor with access to credit so that they can generate some kind of business activity. It began in the 70’s with Accion and has gained a lot of momentum with Nobel Prize winner Muhammad Yunus and the Grameen Bank. If you don’t know about it- you should start to do some reading.

I’m taking a class on microfinance at the moment. The biggest thing that I’m learning which I previously did not consider is that microfinance is making some people very rich (and I don’t mean the borrowers). In fact some people (such as the founder of ebay) love the idea of microfinance but won’t get into it until they can get a 10-20% return off of their investment. In short- microfinance is becoming commercialized.

So good ideas, generosity and helping the poor come back to this: what’s in it for me? Ebay man would argue that if it can be profitable you’ll have more people wanting to invest in it- and so a greater number of ‘the poor’ will have access to credit and the rich will make even more money! win and win.

Great! Perfect. Wait… what?

Mulling over the ethics of this statement right now... thoughts?

You can read up on this yourself:

Millions for Millions

You too can be a Banker to the Poor

Hype and Hope: The Worrisome State of the Microcredit Movement