Wednesday, October 18, 2006

Praise for Yunus pouring in

Former New Zealand Prime Minister Mike Moore writes about Yunus in The Gulf News:
Three cheers for the Nobel committee for awarding this year's Peace Prize to Mohammad Younus. The Bangladeshi economist won the prestigious award for his pioneering and successful idea of micro-credit that helped millions of his countrymen to avail of loans without any collateral.


Hernando De Soto, who should get the next Nobel Prize, is a Peruvian economist and his splendid work on why capitalism works in some countries and not others, offers another profound insight. Poor countries have enormous assets but lack capital. Those assets cannot be unlocked because of poor legal titles, assets cannot be bought, sold or borrowed against.
However, he also makes a mistake on statistics when he says "Mobile phones are growing at 1.5 million a month in India which now has more mobile phones than China". Indian mobile penetration growth rate is higher than that of China, but for sheer numbers, China is way ahead of India. India has a long way to reach China in mobile phone penetration. The average Chinese is more well off than the average Indian at this moment.

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