Microfinance, death bell for communism
Microfinance is widely talked about throughout the world. Through the remote part of Bangladesh it kicked off its journey and gradually flew through the kingdom of light hovering clouds to spread its message. And the target group easily understood and promptly absorbed its mesmerising effect. This way credibility of the system was established within comparatively short span of time. In a World Bank estimate about 160 million from the developing countries at present take assistance through microfinance. However, credit goes to the Bengali economist Dr. Mohammed Yunus who invented in his factory the idea and threw it with a note that it would effectively absorb the shock of poverty and empower the…show more content… It may be granted to individuals or a group. But the amount involved in this connection is always meager.
Why is the amount peanut? The reason may be that he (she) who never counts accumulated amount will be in trauma having loan of a big amount. What will he do with the amount? And if he is at all given the way out he will be in constant fear of losing it in transaction. Yet again, will he be able to provide necessary amount to open an account and who will assist him in transaction matter?
On such background it is easy to conclude micro-credit service is not feasible for them. But who will deny they are already enjoining the service though in a different way. Since ages there remains a practice of private lending in the subcontinent. The lenders provided the poor the service with high interest without any collateral. Names of Muslim Pathans and Hindu Marwaris are referred to in this connection. Not only that the poor makes groups and collect amount from the members of the group/s for keeping it in safe hand though sometimes the safe-hand turns into rogue and leaves no stone unturned to pocket fraudulently their savings. The amount so collected is given to members turn by turn. Further they buy gold, jewelry, animals, buildings etc as investment. In case of need they can be turned into cash.