microloans

[stressmom]

How do you all feel about the concept of larger and more financiallly sound countries offering small businesses in third world countries what are called microloans? They give them a small amount of money in the hopes that these loans will help to jump start the economic growth in these struggling areas. Do you think this is a good concept in practice or just in theory?

 

[Former Member 1]

How do you all feel about the concept of larger and more financiallly sound countries offering small businesses in third world countries what are called microloans? They give them a small amount of money in the hopes that these loans will help to jump start the economic growth in these struggling areas. Do you think this is a good concept in practice or just in theory?

Great in theory.... In practice many of these regions are so steeped in corruption all that would happen is you'd feed the fat cats...

Personally I'd rather see something like this done on a local basis. About 13-14 years ago they put

 

[ahop23]

I completly agree that perhaps some of this money could be better spent at home versus abroad. I am all for everyone having the opportunity to have a go at entrepreneurship but I also feel that it should not be to the detriment of those who are making the loans.

 

[stugster]

I wish I could get away from speaking about this man... but Branson has the idea (and the nail) knocked on the head.

He invests only in self-sustaining projects over in third world countries. For example, a hospital that runs itself and provides jobs in the form of Nurses, Cleaners, etc. People get medicine for HIV/AIDs, Malaria for free, but other illnesses they pay a very modest fee to cover the cost of the nurses wages.

Just sending money across to the government of these countries will pretty much guarantee it's wasted on drug export, or other stupid practices that will be of no beneficial support to the people.

 

[Scottish Business Owner]

I have to agree with Matt here. Why should you even contemplate giving money to other countries when things in this country are hardly perfect. There's loads of stats that show only a small percentage of whats given to these countries is actually spent on what the money was asked for.

Call it bureacracy, call it corruption, call it whatever you like but whilst there are still people in the country sleeping on the street and stuggling to make ends meat we should be focussing on sorting our own domestic problems.

 

[stugster]

I see where you're coming from, but recently a few little points got me really feeling for the third world countries.

Even when the homeless people in this country die, their bodies go to a morgue. In Malawi, Africa, they use a second hand fridge.

That's just one of the saddening things.

You might ask how they fit a human body in a fridge... well they don't. The fridges are for the babies.

 

[Scottish Business Owner]

There's hundreds of distressing images out there all about Africa and i'm certainly not immune to feeling touched and saddened by them but I think there are fundamentals flaws in how these funds are distributed and measured.

What you're talking about here is lending to people who may not be able to pay it back. It's fine doing that if you can afford to be without that money.

I dont know what the anser is over there because they need to get support from somewhere

 

[stugster]

I agree with you in the sense we shouldn't be "lending". Been there, done that, look at the debts they've all got now.

Lending to Third World doesn't work. So we need to find alternative, self-sufficient ways of 'giving' to them.

What you're talking about here is lending to people who may not be able to pay it back. It's fine doing that if you can afford to be without that money.

The irony of the sub-prime mortgage lenders is not lost on me hehe!

 

[gamecockfan]

do you think that business education classes would work better in these situatioins or is this too a lost cause in this world of dictators? There has to be an naswer fo solving these types of international problems yet I am at a loss for what it may be. Throwing money at the situation tends to only make things worse.