Submitted by Outdoor Fireplace (not verified) on June 17, 2009 - 11:56am.
Now it seems the microfinance firms are running into America however I don't expect to see the same result as those found in the third world countries. As Americans, the majority I'd guess is willing to help others but not from a state of total altruism. We want something tangible from our investments and I think that's where microfinance will be lacking in the future. Why invest 10 000$ into a person so that they can start their baking shop in New Orleans when you will get only the 10 000$ returned, if that when you can deposit it into a bank or a stock or mutual fund and receive a return. No other loans are given out without interest and while it looks nice on paper that the person doesn't have to pay back with interest, it doesn't make sense in our culture.
Altruism is a rare thing these days and increasingly so in the West. I think for the model to truly succeed and increase it's numbers there needs to be something in it for the middle class. Harsh to say but I think that's the truth.
Expansion of microfinance
Now it seems the microfinance firms are running into America however I don't expect to see the same result as those found in the third world countries. As Americans, the majority I'd guess is willing to help others but not from a state of total altruism. We want something tangible from our investments and I think that's where microfinance will be lacking in the future. Why invest 10 000$ into a person so that they can start their baking shop in New Orleans when you will get only the 10 000$ returned, if that when you can deposit it into a bank or a stock or mutual fund and receive a return. No other loans are given out without interest and while it looks nice on paper that the person doesn't have to pay back with interest, it doesn't make sense in our culture.
Altruism is a rare thing these days and increasingly so in the West. I think for the model to truly succeed and increase it's numbers there needs to be something in it for the middle class. Harsh to say but I think that's the truth.
David,