Since we’re on microfinance already today, here’s a pet peeve I have about it.
Jeff Cornwall at The Entrepreneurial Mind got me ranting and raving about this because of his post today on the Debate about Microfinance.
I’ve discussed this previously in a post called “Microlending Goes For Profit In The Third World”
I don’t know if my comment was accepted, there was some glitch. So I’ll post mine here.
I’ll be attending a microloan seminar today at lunch time. Thanks to Kiva.org, I even get to participate in the microlending process.
Though the Nobel prize to Grameen Bank gives microcredit high profile,and big commercial banks want to get in on the lending now that it’s become popular and there are a billion potential customers, we have to realize that there is a significant faith based component to micro lending historically.
This dates back to the Torah and is embodied today in the International Association of Hebrew Free Loans (see http://www.hflasf.org/ and freeloan.org). It is also popular as a tool for Christian economic development in conjunction with other relief and ministry.
My fear is that, like hospitals, which were also started by charitable and usually faith based institutions, microlending will become the province of big business interests and become “microusury”, the equivalent of the pay day loan.
So I agree, let’s not let the Johnny come lately’s who sniff the quick profits of usury come to the party and act 1) as if they give a hoot about the people being helped and 2) then regulate it to their liking so they can eviscerate it as a tool for economic liberation!
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