Economics Home Microcredit

Questions/Issues:

1) Given the development and ease of the American marketplace, it may be difficult to imagine what .59$ a day means. What is the extent of poverty in Africa and the LDCs? The poverty line in America usually means that a family has housing with running water and electricity and 1 TV. Many measures seek to ensure that households in poverty in America still have access to a computer and washing machine. In many parts of Africa, Bangladesh, and other countries, poverty means lack of access to clean water, housing, transportation, electricity, education, health care, etc.

2) Banking relies on a principle of profit. Where is the profit in micro-lending? How do they track it? Does illiteracy affect it?

3) Why are women the main beneficiaries of micro-lending? What does their involvement suggest about the role of women in economic development?

4) Growing out of the last question, what cultural expectations surround women and their role in the marketplace? Does micro-lending challenge those expectations? What are the cultural obstacles to micro-lending and economic growth?