Muhammad Yunus and Grameen Bank were awarded the Nobel peace Prize yesterday, for their efforts in developing the practice of micro-credit in Bangladesh for the benefit of the extreme poor, mainly women. Micro-finance is not perfect, but it is a great idea that generally works for the poor. Only incorrigible cynics would find fault with the high interest rates and rates of return that have become attractive for major commercial financial institutions that would not normally give tuppence for, or about, the poor.
Some background on Microfinance can be found in this survey by The Economist from last year, and some perspective on how the microfinance industry has grown can be gained from the Microfinance Portal.
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