Friday, April 06, 2007

Time Magazine article on Microcredit

General article with the usual quotes on Microcredit, what it can do and where critics say it has failed. The example with which the story starts and ends is more interesting.
When Melecio Penafiel wanted to expand his tailoring shop in Guayaquil, Ecuador, last May, he didn't go to the bank or ask his relatives for help. His seed money arrived via the Internet. Using the website a Bay Area software engineer named Nathan Folkert lent Penafiel the $500 he needed to buy two new sewing machines, fabrics and thread for higher-quality suits. Folkert has never met Penafiel but says making the loan "felt like I was giving him a shot at the American Dream."


Penafiel was able to pay back his loan five months later, and had a little left over to cover his six kids' school fees. It isn't quite the American Dream, but it's a start.

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