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In the field of Microcredit what is needed is the dedicated work force and efficent management and not the huge subsidy, lower interest rate, etc. Bangladesh's Grameen bank and Mohd Yunis is one of the live examples, in the field which is duly recognised by honouring with Nobel peace prize.

Guy Pfeffermann

I think there is a huge danger that microcredit will now become even more than before the pet of philantropists. While grants are needed to start a microcredit institution, these institutions should be profitable soon thereafter. If they are not, it means that they are grossly mismanaged and/or that governments put low ceilings on lending rates (which is why there aren't many, if any, in China and Vietnam). The reason they can be so profitable is that their rates remain way below the alternative for bowwoers, i.e. the money lender. Drowning them in grants won't make them better, quite the opposite. On the other hand, I find it very worthwhile to look at how MFIs can broaden their range of activities beyond lending and serve as secure savings institutions for poor populations. Poor populations do save (rich ones often don't, viz. the US's abysmal household saving rate) but most often don't have access to a trustworthy bank, and so savings take the form of jewels, cattle, etc., none of which enhance the lenging capacity of MFIs.

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