Sunday, May 07, 2006
For the past 20 years, microfinance has become an increasingly important tool for connecting the poor with mainstream financial institutions. Here's a good article from Business Week that explores the trend. Read more.
If you are interested in learning more about microfinance, check out these sites:
Here's a cautionary tale about microfinance. About twenty years, I set up a microfinance organization in Shreveport, LA. One of our first loans went to an earnest young man who wanted to buy a used pick-up truck so that he could get into the lawn care business.
Our manager became entranced with the young man's plans. We approved the loan, and three weeks later -- after missing his second and third check in -- we learned that the young man had driven his truck to Florida.
The message: microfinance programs work because of the social networks that promote low default rates and low administrative costs. In microfinance, its not about the money, it's about the networks. It cost me a used pick-up truck to learn that lesson.
posted by Ed Morrison |
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Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
Connecting the poor with microfinance
