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Re: Grameen Bank Query

Please help make the Manifesto better, or accept it, and propagate it!

Kartik Ramachandran wrote:

> However, while much has been said in praise of the bank, a lady I knew who
> studied the role of NGOs in Bangladesh mentioned that some of the women she
> interviewed said that they took the money from the Grameen Bank but never
> anything with it. Two reasons: 1) the bank required first installments to be
> paid back so quickly, that they couldn't do very much, and 2) patriarchy
> within the society persisted to prevent them from really doing anything with
> the money they took.

Assume that Grameen bank got people to borrow and repay just to pad  their
portfolio--show more good work than they have actually done.  But the
must had to pay interest on the loan.  So according to the story, they
the money, didn't do anything with it, paid back the loan in installments with
the same money, and also lost their own money equal to the amount of the
interest.  Sounds rather irrational!

Unless of course the borrowers loaned out the loan to some one else at the
interest and thereby broke even, or at a higher rate of interest and made

The story as told is rather incomplete.

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