Very good conversation on micro-finance (i.e. Grameen and its ilk).
Yunus makes a wonderful point in his reference to Grameen not being affected by the international economic crisis. They’re not tied into the world economy and the money (over $1 billion lent per year) comes from the locality. It’s a wonderful real world example of how developing countries suffer from the economic actions of the rest of the world when a culture of government to government aid dependency is nurtured. Conversely, micro-financing institutions, like Grameen, aren’t affected because they get the money to lend from the local communities to which they lend.
I really like the point made by Yunus concerning how everyone is currently worried about getting back to a financial system like we had before the meltdown. Why not take this situation as a chance to grow? As Yunus says, why go back to a system that ignores two-thirds of the world.
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BBC Newsnight - Dambisa Moyo discusses microcredit with Muhammad Yunus (viadambisamoyo)
Granted, many things are better in mission than actuality, but going strictly by where the envoy says the money is going, I think this is a great example of why Dambisa Moyo’s argument can’t be so cut and dry.
Roads and agriculture are two sectors capable of making a huge difference in the development of Uganda. That some of the funds are being directed to development projects in the north just make this government to government aid seem quite positive.
Problems could arise if there are requirements for Uganda tacked onto the funding, but otherwise, I see no downside to this package.
I’d love to hear some differing opinions, though.
I’m way late on this, but it’s a very interesting take on the future of the continent under the current economic crisis. Though, I don’t think Dambisa Moyo would like the implications.
The World Bank just released the second edition of their Atlas of Global Development.
Yet more proof of economic exploitation and how it leads to aid dependency. Dambisa Moyo made wonderful observations… I just hope it goes beyond observing. I guess I’ll see when I read the entire book.
