263. Living on One Dollar: Is Microcredit the Solution?
Is giving access to microfinance loans to poor people a permanent and sustainable solution for poverty in this world? Why aren’t basic needs a given right in the system? Why the need to resort to debt? Discussing the solutions stemming from the Documentary “Living on One Dollar” and let’s question: who benefits?
Living On One Dollar
“Critics say that microcredit has not increased incomes, but has driven poor households into a debt trap, in some cases even leading to suicide. They add that the money from loans is often used for durable consumer goods or consumption instead of being used for productive investments, that it fails to empower women, and that it has not improved health or education. Moreover, as the access to micro-loans is widespread, borrowers tend to acquire several loans from different companies, making it nearly impossible to pay the debt back. As a result of such tragic events, microfinance institutions in India have agreed on setting an interest rate ceiling of 15 percent.”
- Grameen Bank:
To guarantee our basic living rights and create a regenerative economic system that includes the provision of a Guaranteed Living Income: