Friday, November 9, 2007

Microcredit is a proven way to increase income

Microcredit is effective for women in self-employment

When working on poverty eradication, the first message that we must communicate is that poverty is not hopeless, says Mr Eric Thurman, co-author of ‘A Billion Bootstraps’ ( http://www.tatamcgrawhill.com/).
“People should not be trapped in horrible lives of deprivation. Microcredit can help. Currently more than 100 million families around the world are improving their lives thanks to microcredit. That number needs to be many times larger. The number is growing, but the acceleration can and should be much faster.”
Think about the poverty at its most basic level, he urges. “Economic poverty has only two root causes, a lack of income or a lack of assets. Some people are so poor that they lack both. Poverty diminishes as incomes or assets rise.”
The essential of ‘how to combat deep poverty’, therefore, is to help people increase their incomes and assets, explains Mr Thurman, during the course of an e-mail interaction with Business Line.

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