Microcredit

Basics

• An emerging humanitarian effort approach
• Consists of giving small loans with little intrest typically, to people with little collatoral, employment, etc
• Similar in part to the "Teach Someone to Fish" metaphor
• Typically done to allow them to buy equipment, and start a business/service
• Is UN recomended to help aleviate poverty in developing areas (post sources later)
• Solves the The "Poor Can Only Afford to Buy A Tool Once" Issue to a certain extent
• Also goes well with Job Training and Entrepreneurial Training , and Business Plans + Business Drop Kits (forget if "drop kit" was the right term? Essentially all the paperwork, plans, and even machine parts etc in one "package" ) to promote success
• CAN be done in a corrupt/exploative manner, but assuming various watchdog organisations are involved etc, it tends to be very helpful in the serviced areas

Useful Links

• The Wikipedia Page on Microcredit
• A TEDx Talk on Microfinance by Muhammad Yunus They Founded the Grameen Bank a group which nearly started the modern microfinance movement
• A Ted Talk On the Subject by Shivani Siroya