The link below connects to entrepreneur.com, a site that frequently has articles about microloans. While not all of the RSS feed relates to microloans they are interetsing to listen to none the less, and sometimes microloans, microfinancing, Kiva, FINCA, NamasteDirect, Grameen Family, Muhammad Yunus, or other related topics come up. To keep up to date subscribe to the feed.
http://www.entrepreneur.com/feeds/
5.29.2008
Microloan Podcast
Below is a link to a website that has a podcast about the passing of the Microloan Amendments and Modernization Act. This is a very interesting issue, particularly because it relates to microbusinesses in the United States, not just other countries.
http://www.microenterprisejournal.com/JournalBlog/2007/09/10/podcast-major-microloan-tweak-passes-house/
http://www.microenterprisejournal.com/JournalBlog/2007/09/10/podcast-major-microloan-tweak-passes-house/
Letter to the Editor
To Whom it May Concern,
I wish that your magazine would have an in depth article about the growing global trend of microloans. Seeing as the goal of your publication is to inform the public about the economy and various business ventures I would think that microloans would be easy to incorporate into any issue.
The truth of the matter is that microloans are a great way for people to make a contribution to the developing countries of the world, and the most poverty stricken people, without giving up time or money. While temporarily the lender has to part with their hard earned money they eventually get it back.
Many people express concern that the business that they support will not succeed and therefore they will not get repaid. This however, is an empty fear, for many reasons. First, the lender chooses to whom they loan their money. Therefore it is in the hands of the lender to choose an entrepreneur whose business they (the lender) believe will succeed. Second, microloans have a very high success and return rate. Third, should the business fail then the financial contribution of the lender is not so great a sum that it will prove to be a significant burden to the lender.
I feel that one reason that many people do not want to partake in microloans is because they are not tax deductible. With charity a person may do good, and receive a tax break. That is not the case with microloans. I wonder if microloans, if they were designated as cyclical donations, were tax deductible if more people would be willing to make a donation. A cyclical donation is a loan that is re-lent after it has been paid back.
Imagine the good that could be done if even a small percentage of the population donated as little as $100 in cyclical donations. The chain reaction of positive implementations is endless. Hundreds of small businesses could be funded, boosting the economies of developing countries.
Microloans were created on the idea that credit, not charity is the best way to end poverty. When we look at the chain of events cyclical donations can make it is apparent that credit is a great way to fight poverty. If your magazine would run an article discussing the benefits of microloans I feel certain that the number of loans made would jump. The biggest issue facing the microloan foundations is not the personal interest I mentioned earlier, but lack of public awareness. There are thousands of people who feel that the best they can do for society is to throw their spare change in the Salvation Army buckets. If people knew what a difference they could make for so little then surely they would be eager to help. Even running a pole about whether people would be more willing to lend if there was some sort of tax deduction would help boost public awareness. Microloans are a truly worthy cause. It is a shame that not more people know about them, and make the global difference that we are all capable of making.
Sincerely- Kat Brentano
I wish that your magazine would have an in depth article about the growing global trend of microloans. Seeing as the goal of your publication is to inform the public about the economy and various business ventures I would think that microloans would be easy to incorporate into any issue.
The truth of the matter is that microloans are a great way for people to make a contribution to the developing countries of the world, and the most poverty stricken people, without giving up time or money. While temporarily the lender has to part with their hard earned money they eventually get it back.
Many people express concern that the business that they support will not succeed and therefore they will not get repaid. This however, is an empty fear, for many reasons. First, the lender chooses to whom they loan their money. Therefore it is in the hands of the lender to choose an entrepreneur whose business they (the lender) believe will succeed. Second, microloans have a very high success and return rate. Third, should the business fail then the financial contribution of the lender is not so great a sum that it will prove to be a significant burden to the lender.
I feel that one reason that many people do not want to partake in microloans is because they are not tax deductible. With charity a person may do good, and receive a tax break. That is not the case with microloans. I wonder if microloans, if they were designated as cyclical donations, were tax deductible if more people would be willing to make a donation. A cyclical donation is a loan that is re-lent after it has been paid back.
Imagine the good that could be done if even a small percentage of the population donated as little as $100 in cyclical donations. The chain reaction of positive implementations is endless. Hundreds of small businesses could be funded, boosting the economies of developing countries.
Microloans were created on the idea that credit, not charity is the best way to end poverty. When we look at the chain of events cyclical donations can make it is apparent that credit is a great way to fight poverty. If your magazine would run an article discussing the benefits of microloans I feel certain that the number of loans made would jump. The biggest issue facing the microloan foundations is not the personal interest I mentioned earlier, but lack of public awareness. There are thousands of people who feel that the best they can do for society is to throw their spare change in the Salvation Army buckets. If people knew what a difference they could make for so little then surely they would be eager to help. Even running a pole about whether people would be more willing to lend if there was some sort of tax deduction would help boost public awareness. Microloans are a truly worthy cause. It is a shame that not more people know about them, and make the global difference that we are all capable of making.
Sincerely- Kat Brentano
Survey Results
I presented information about microloans to two senior economics classes, I also provided a brochure with information about the concept of microloans, and about the specific organizations. I had them fill out a survey to help me understand how much I was able to teach them, as well as see how many people were inspired to make a microloan. Here are the results of the in class surveys. 45 people were polled.
1. How much did you know about microloans before reading the brochure/hearing the presentation?
Percentage Breakdown- Alot- 8.9% Microloan? What's that?- 37.8%
Had heard of them- 35.6% A little- 17.8%
5. How much did you know about microloans since reading the brochure/hearing the presentation?
Percentage Breakdown- Alot- 53.3% Microloan? What's that?-6.7%
A little- 40% Had heard of them- 0.0%
Comments-
1. How much did you know about microloans before reading the brochure/hearing the presentation?
Percentage Breakdown- Alot- 8.9% Microloan? What's that?- 37.8%
Had heard of them- 35.6% A little- 17.8%
2. Are you Interested in making a microloan?
Percentage Breakdown- Yes- 11.1% No- 22.2%
Potentially- 60% I have no money- 6.7%
3. Which organization are you most interested in loaning with?
Percentage Breakdown- Kiva- 37.8% NamasteDirect- 35.6% FINCA- 26.7%
4. Do you believe microloans can change the world?
Percentage Breakdown- Yes- 44.4% I really don't know- 22.2%
No- 6.7% They can't hurt- 26.7%
5. How much did you know about microloans since reading the brochure/hearing the presentation?
Percentage Breakdown- Alot- 53.3% Microloan? What's that?-6.7%
A little- 40% Had heard of them- 0.0%
Comments-
I've already provided a microloan! It's a great idea. I've funded a supermarket in Chile and some others. :)
I <3>
I had never heard of microloans before this presentation. Now I believe they can be incredibly useful.
I don't know if they can change the world, but they sound promising.
Microloans are very interesting and more people should become party of this trend.
Microloans are a great way to slightly change poverty-stricken countries. Really poor to poor.
5.23.2008
Dr.Muhammad Yunus; Nobel Peace Prize
Dr. Muhammud Yunus is a remarkable man. He comes from the poverty stricken country of Bangladesh. In his 30's he was a professor of Economics, but he didn't feel that his work was rewarding enough. So he founded the Grameen Foundation and Grameen Bank to help alleviate the pain of extreme poverty through microloans. Here are a few videos that will help you understand the inspiration and goals of Dr. Muhammud Yunus.
Overview of what Dr. Yunus Believes-
History of Bangladesh and Dr. Muhammud Yunus-
Q&A with Dr. Muhammad Yunus-
Overview of what Dr. Yunus Believes-
History of Bangladesh and Dr. Muhammud Yunus-
Q&A with Dr. Muhammad Yunus-
5.19.2008
The Myth of Microloans; A Nobel Peace Prize for Neoliberalism?
On the website CounterPunch there is an article titled "The Myth of Microloans; A Nobel Peace Prize for Neoliberalism?" In this article Alexander Cockburn, a radical political journalist, who criticizes microloans as having outlived their usefulness. Cockburn says that while it was a radical idea in the '70's when it was first introduced it has failed to live up to its promise of changing how first and third world countries relate. Furthermore he compares them to a micro-band aid on a macro-wound.
To prove his case he quotes economist Robert Pollin who says, "Bangladesh and Bolivia are two countries widely recognized for having the most successful micro credit programs in the world. They also remain two of the poorest countries in the world."
He also quotes P. Sainith, author of "Everybody Loves a Good Drought" who says that microlending can be useful but it shouldn't be romanticized or made out to be a transformational activity. Because transformationally speaking, its relatively useless.
Furthermore, Cockburn argues the Nobel Peace Prize is a joke, because at one point Henry Kissinger, father of the atomic bomb, won it. He continues to argue that Mohammed Yunus should not have won the award because the idea that microloans can help is just as ridiculous as linking "Kissinger" with "Peace".
Below is the link to an article ;
http://www.counterpunch.org/cockburn10202006.html
To prove his case he quotes economist Robert Pollin who says, "Bangladesh and Bolivia are two countries widely recognized for having the most successful micro credit programs in the world. They also remain two of the poorest countries in the world."
He also quotes P. Sainith, author of "Everybody Loves a Good Drought" who says that microlending can be useful but it shouldn't be romanticized or made out to be a transformational activity. Because transformationally speaking, its relatively useless.
Furthermore, Cockburn argues the Nobel Peace Prize is a joke, because at one point Henry Kissinger, father of the atomic bomb, won it. He continues to argue that Mohammed Yunus should not have won the award because the idea that microloans can help is just as ridiculous as linking "Kissinger" with "Peace".
Below is the link to an article ;
http://www.counterpunch.org/cockburn10202006.html
Grameen Foundation- In Depth
Grameen Foundation- Empowering People. Changing Lives. Innovating for the World's Poor.
History-
The Grameen Foundation is a separate foundation from the Grameen Bank. However, the foundation works closely with the bank, and was founded to help speed the impact that microloans can have. It is a baby organization of the bank, and has its roots in the Bank. The bank was founded in 1976 Professor Muhammad Yunus (the founder of Kiva) with $27 from his pocket. He still serves on the board of directors, but the foundation/bank are both entirely owned by the clients.
What Grameen Foundation Does-
The Grameen Foundation is unlike the bank in that it does not actually handle the money. The Grameen Foundation supports microloan institutes (MFI's) in the form of funding, technical assistance, training and new technology. The Foundation helps harness new technology to make the microfinance industry more efficient. They connect MFI's with the capitol market, bringing in new financial resources to the institutes. A major role of the foundation is publicity, they spread the word about the huge amounts of good that can be done through microloans. And finally they promote "social business".
What is Social Business-
In his book, A World Without Poverty, Muhammad Yunus presents two business models which he labels social businesses. A social business is social-objective driven. The first model is created through building or supporting sustainable "non-loss" business enterprises where all of the profits are ploughed back into the company rather than being distributed to shareholders. The second model is profit driven. Instead of the money going back into the business, the business is owned and operated by the poor, who then reap 100% of the benefits.
Where Does Grameen Help-
The Grameen Foundation is making an impact in the following countries-
Bangladesh, Pakistan, India, China, East Timor, Indonesia, The Philippines, Mexico, Honduras, Haiti, El Salvador, Dominican Republic, Bolivia, Egypt, Lebanon, Morocco, Saudi Arabia, Tunisia, Yemen, Cameroon, Ethiopia, Ghana, Nigeria, Rwanda, and Uganda.
For More Information on The Grameen Foundation visit the website below;
http://www.grameenfoundation.org/who_we_are/
History-
The Grameen Foundation is a separate foundation from the Grameen Bank. However, the foundation works closely with the bank, and was founded to help speed the impact that microloans can have. It is a baby organization of the bank, and has its roots in the Bank. The bank was founded in 1976 Professor Muhammad Yunus (the founder of Kiva) with $27 from his pocket. He still serves on the board of directors, but the foundation/bank are both entirely owned by the clients.
What Grameen Foundation Does-
The Grameen Foundation is unlike the bank in that it does not actually handle the money. The Grameen Foundation supports microloan institutes (MFI's) in the form of funding, technical assistance, training and new technology. The Foundation helps harness new technology to make the microfinance industry more efficient. They connect MFI's with the capitol market, bringing in new financial resources to the institutes. A major role of the foundation is publicity, they spread the word about the huge amounts of good that can be done through microloans. And finally they promote "social business".
What is Social Business-
In his book, A World Without Poverty, Muhammad Yunus presents two business models which he labels social businesses. A social business is social-objective driven. The first model is created through building or supporting sustainable "non-loss" business enterprises where all of the profits are ploughed back into the company rather than being distributed to shareholders. The second model is profit driven. Instead of the money going back into the business, the business is owned and operated by the poor, who then reap 100% of the benefits.
Where Does Grameen Help-
The Grameen Foundation is making an impact in the following countries-
Bangladesh, Pakistan, India, China, East Timor, Indonesia, The Philippines, Mexico, Honduras, Haiti, El Salvador, Dominican Republic, Bolivia, Egypt, Lebanon, Morocco, Saudi Arabia, Tunisia, Yemen, Cameroon, Ethiopia, Ghana, Nigeria, Rwanda, and Uganda.
For More Information on The Grameen Foundation visit the website below;
http://www.grameenfoundation.org/who_we_are/
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