Comments on: A Private-Sector Solution to Poverty http://www.thefreemanonline.org/columns/a-private-sector-solution-to-poverty/ Ideas on Liberty Wed, 15 Feb 2012 04:40:14 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Eiji Wolf http://www.thefreemanonline.org/columns/a-private-sector-solution-to-poverty/comment-page-1/#comment-45546 Eiji Wolf Mon, 15 Aug 2011 14:23:28 +0000 http://www.thefreemanonline.org/uncategorized/a-private-sector-solution-to-poverty/#comment-45546 Ah, found it: http://mises.org/daily/2375 Ah, found it: http://mises.org/daily/2375

]]> By: Eiji Wolf http://www.thefreemanonline.org/columns/a-private-sector-solution-to-poverty/comment-page-1/#comment-45545 Eiji Wolf Mon, 15 Aug 2011 14:21:59 +0000 http://www.thefreemanonline.org/uncategorized/a-private-sector-solution-to-poverty/#comment-45545 I have seen the Grameen Bank displayed from a different angle - as a covertly socialist (the communitarian principle, the rules of Grameen etc.), rent-seeking organization. In fact, it seems that Mr. Yunus has endeavored many projects, of which only one was truly profitable (Grameen Mobile), and all others are loss-makers. The Grameen Bank only stays afloat thanks to grants and gifts from uncritical admirers who do not even look at financial data. Default rate 2% only applies to first-time borrowers (and not all to boot), while the repeat borrowers have much higher default rates. Sadly, I have misplaced the link for the original article. Will try to find it. I have seen the Grameen Bank displayed from a different angle – as a covertly socialist (the communitarian principle, the rules of Grameen etc.), rent-seeking organization. In fact, it seems that Mr. Yunus has endeavored many projects, of which only one was truly profitable (Grameen Mobile), and all others are loss-makers. The Grameen Bank only stays afloat thanks to grants and gifts from uncritical admirers who do not even look at financial data.
Default rate 2% only applies to first-time borrowers (and not all to boot), while the repeat borrowers have much higher default rates.

Sadly, I have misplaced the link for the original article. Will try to find it.

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