There's wealth at the bottom of the pyramid.
I like this quote:
If a large international bank were to start lending to the poor at interest rates,
reflecting higher risks and start-up costs, of say 20% (compared with around 10% in
rich countries), the whole anti-globalisation lobby would probably be against it.
Yet the alternative is for the poor to borrow at 500% from a money lender. Whose side
are the activists on? If you are on the side of the poor, he says, surely you need
to help get rates down from 500% to 20%. After that, you can work on getting them
from 20% to 10% like in the rich world.
This is the same argument I have against other anti-globalisation lobby protests (like those about using sweatshops). – ZbigniewLukasiak
- HernandoDeSoto finds that when he discovers that the wealth generated by construction etc. of poor communities is greater than overseas investment in places like Egypt.
- The political left always thought this. And they thought capitalism was a mechanism for syphening most of it up the pyramid.
- Asks about banks lending to poor at higher rates : What about MicroCredit?