The other side of the coin: Microcredit’s revolution

It seems that words like “Economy” and “erradication of poverty” cannot walk together isn’t it? Let’s try to see that indeed this is not the case.

The word microcredit  did not exist before the seventies but now has become a “buzz  word” among the development practioners. I would like to focus on Grameen Credit. Its origin dates form the 60’s and it was developed by Muhammad Yunnus know as the “ banker of the poor”. Although its use was initially linked to the developing countries now it had been extended to many different fields.  The main idea was to design a credit delivery system to provide banking services targeted at the rural poor.  And that simple but at the same time sensible idea was transformed into an independent bank; the Grameen Bank. After its establishment, it started experincing tremendous demand for foreigners around the world.

General features of Grameencredit.

  • It promotes credit as a human right.
  • It is not based on any collateral or legally enforceable It is based on “trust”.
  • It gives high priority on building social capital.

In fact I was really fascinated with this idea since it’s not based on a charity action; it goes far away in the sense it promotoes people to develop their creativity and initiative. Nowadays it seems that only those who have the necessary financial resources to start a company can be enterpreneurs. It is not the lack of skills which make poor people poor; it’s a matter of opportunities. We are not gonna change the world if we do not let everybody to at least, decide if they want to pursue some kind of project. I am aware of the huge rethink this involves. But… aren’t the big achievements of history revolutionaries?

Elsa Vicente Puntí,  student of 3rd year of International Business Economics at Universitat Pompeu Fabra

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