Tuesday, March 25, 2008


Over break I was speaking with one of my wife’s relatives and she asked me about my opinion on micro-credit programs like the Grameen Bank. For my next week’s class I’m having my student read an essay Karol Bourdeaux and Tyler Cowen.
If you want a great overview, I suggest you read it. If you want the key point here it is:

“Bang¬la¬desh, where Gram¬een Bank was born, is still a desperately poor country. The more modest truth is that microcredit may help some people, perhaps earning $2 a day, to earn something like $2.50 a day. That may not sound dramatic, but when you are earning $2 a day it is a big step forward. And progress is not the natural state of humankind; microcredit is important even when it does nothing more than stave off ¬decline.”

Development economics is difficult there is no easy answer, but yes microcredit is helping, but it is just one of many things that needs to be done.

Bookmark and Share

No comments: