Sunday, 2 October 2011

'Microcredit doesn't work - it's now official'

Creative Financing: feasibility study into financial mechanisms for supporting small-scale creative activity in Scotland
Shetland Arts with support from Mission Models Money, Creative Scotland and Highlands and Islands Enterprise
Final Report, January 2011

"...There are plans to explore the implications of this new study alongside other related work that has been recently published or is in the final stages of research at a national event later in year."


Microcredit doesn't work - it's now official
Milford Bateman, September 20, 2011

"The inexorable expansion of microcredit and informal microenterprises ... inevitably absorbs the financial resources and policymaker attention that might otherwise have been directed towards supporting the crucial SME sector."
"Muhammad Yunus famously announced that poverty would be eradicated in a generation, and the very notion of poverty itself would soon be 'consigned to a museum' to which our children would have to go on study tours to see what all the fuss was about. With such hugely seductive and supposedly successful forms of 'capitalism by and for the poor' on offer, the key international development institutions, and the US government and World Bank in particular, fell over themselves to finance the idea of microcredit. The global microcredit movement was up and running very fast indeed. Unfortunately, after nearly 30 years of global experience in the field, it is now quite clear that Dr Yunus has turned out to be spectacularly wrong. A growing number of independent analysts and institutions, and even long-standing supporters of microcredit, now accept that this is indeed the case."

Also see:
Sophie Hope & Leigh French examine Case Studies:

Credit Markets - micro-finance : the individualistic focus of development intervention

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