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

Page should be read with PlentyOfRoomAtTheBottom, TheLongTail

Thoughts ...

  • 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?