yunus_banker_of_the_poorFrom: bdnews24 – January 4, 2011 – by Tom Heinemann

The heading is not mine. The first portion is a quotation from Mr. Muhammad Yunus and challenged by Thomas Dichter — one of the development experts who participates in my film, “Caught in Micro Debt” which was aired in the Norwegian Television on November 30.

The film was the Norwegian version of an upcoming international film on microcredit which we have been working on over the last couple of years. The new version, which will be named, “The Micro Debt” will be released at the end of January in both Sweden and Denmark. From there we can only hope that other countries will air our film. Thomas Dichter’s retort, “Is debt?,” pinpoints what our film actually is about: does microcredit really eradicate poverty? Is poverty just a matter of handing out a small amount of money and then letting “the market” do the rest?

Community-based_savings_bank_in_Cambodia_300pxFrom: Geography Directions – September 25, 2010 by Robin de la Mottess

On 29 July 2010 The New York Times reported that one of the world’s largest microfinance organizations, India’s SKS Microfinance, was preparing to launch on the Indian stock market. Whilst not the first, SKS was one of the biggest, and it caused controversy because a US-based non-profit microfinance group invested in SKS, Unitus, had said it would close down its microfinance activities after the launch. Muhammad Yunus, winner of the 2006 Nobel Peace Prize jointly with the microfinance pioneer he co-founded (Grameen Bank), criticized the move as encouraging profit maximisation. The launch ultimately raised around $350m. Besides launching on the stock market, Indian microfinance institutions are also pursuing securitization, with micro-loans being pooled into marketable securities.

sks_vikram_akula_forbesBy Ruth David

June 15 (Bloomberg) -- Savita Ramesh Rathore stood at the door to her dimly lit workshop in Mumbai’s Dharavi slum, filled floor-to-ceiling with bundles of old clothes, and tallied up the cost of her son’s wedding last year.

“Jewels, clothes, food, the town hall,” said Rathore, 50, who makes towels from discarded clothes. She borrowed 30,000 rupees ($645) from moneylenders charging 60 percent interest and took additional loans from friends to pay for the wedding. Three months ago, she got a 10,000 rupee loan from urban lender Hindusthan Microfinance Pvt. to repay some of that debt.

Rathore is one of 25 million Indians who have taken so- called microfinance loans, often without adequate documentation or collateral, according to Micro-Credit Ratings International Ltd. As Hyderabad-based SKS Microfinance Pvt. plans to become the first such lender to go public in the country, an industry credited with helping alleviate poverty may come under pressure to tighten loan standards to avoid a pile-up of bad debts.

“Globally, microfinance is showing characteristics of the western financial markets before the collapse,” said Sanjay Sinha, managing director at Micro-Credit Ratings in New Delhi. “In the U.S., homeowners were given loans at 120 percent of the value of their properties. In rural India, people are being lent to at 150 percent of the value of their enterprises.”

The implosion of the U.S. market for subprime mortgages to people with poor credit histories helped trigger a financial panic and almost $1.8 trillion in losses and writedowns at financial institutions worldwide.

peer_lending_03By Gold Subject on May 14, 2010

In a previous post I wrote about why buying gold bullion makes your wealth absolutely inaccessible to the manipulation and wealth-skimming activities of the bankers, achieving the dual effect of protecting your wealth and leaving bankers out in the cold. Well, there is something else you can do to marginalize banks: use peer-to-peer lending networks if you ever wish to borrow or lend money.

Advantages of peer-to-peer borrowing and lending

Peer-to-peer lending and borrowing is extremely advantageous for both borrowers and lenders. The borrowers gain by borrowing at interest rates that are much lower than those offered by banks. The lenders gain by enjoying rates of return on their money that are far superior to even the most generous savings account currently available. Both lenders and borrowers enjoy the satisfaction of knowing that they are helping their peers in a very tangible way, instead of being exploited by banks.

Additionally, there will always be a market for borrowing and lending, because not everyone who wishes to invest money is willing to do it by lending it directly to entrepreneurs, and of course there will always be those who seek to borrow money. These peer-to-peer lending networks typically have no backstops, which means that prospective borrowers are properly vetted. If the loan goes bad, the money is gone (but the risk is spread across many lenders and borrowers — see below).

Friends_of_Microcredit logoFrom the Open Directory Project

Listed below are links to various Microfinance sites on the Internet

world_through_microcreditThis page is under construction

Microcredit is the extension of very small loans (microloans) to those in poverty  designed to spur entrepreneurship.

These individuals lack collateral, steady employment  and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit.

Microcredit is a part of microfinance, which is the provision of a wider range of financial services to the very poor.

hedge_funds_and_equity_firms_in_indiaFrom: Global Research, May 3, 2010 – by Kavaljit Singh

The massive investments by private equity firms coupled with an initial public offer (IPO) by SKS Microfinance has ignited a debate about the ethics and objectives of microfinance institutions (MFIs) in India.

The SKS Microfinance, the largest MFI in India with substantial investments by private equity firms and hedge funds, is planning to raise Rs.11000 million ($250 million) through an IPO.

According to media reports, the original promoters of SKS Microfinance have sold part of their stake to a hedge fund thereby making a 12-fold profit even before an IPO. This shrewd act by promoters and top management not merely raises doubts about their long-term commitments but, more importantly, questions the real motives of promoters who have become instant millionaires while their borrowers remain desperately poor.

This page is under construction

 An important purpose of the Cyber Care Café is to accumulate working capital for future use as seed / start-up funding for whatever type of business is ultimately decided upon by the Café Stakeholders. (at some distant time in the future)

Each girls Home Page features a Donations tab. Each girl controls her own donations, without any obligation to pay or reimburse the Cyber Care Café . On that donations page is listed information about how donations will be used, or if they will be saved to be later combined with others when the Café purchases real estate, or however it is decided to use the money raised in donations.

everything_you_know_about_fundraisng_is_wrongFrom: Inspiring Gifts that Transform

Sunday, February 03, 2008

If you think fundraising is merely raising about money, you really are missing the point. The inspired fundraiser understands her job is to foster greater generosity and gratitude in the world. Development is simply the building of valued-based relationships between prospective donors and organizations. Fundraising is a vehicle for donors to act on these values, bringing joy to themselves and others.

walled-garden01New socially responsible trading networks seek to facilitate long-term profitable investment.

From: strategy+business – by Hazel Henderson

When the global financial system broke down in 2008, many people realized for the first time that the credibility of large institutions, no matter how well regarded, could turn out to be flawed. Now, as governments and large financial institutions seek to rebuild trust, new socially responsible trading networks are emerging. Their goal is to facilitate long-term profitable investment without disruption by speculators. To accomplish this, they have set themselves up as “walled gardens,” screening both companies and sources of capital and bypassing the trading monopolies in central capitals like London, New York, Frankfurt, and Tokyo. They base their attractiveness to investors on a long-standing perception that financial trustworthiness, commitment to environmental and social accountability, and high levels of long-term performance tend to go together. As they grow, they could have immense impact, not just on the portfolios of their investors and the balance sheets of the companies involved, but on the financial system as a whole.

agricultural_bank_of_chinaAgricultural Bank of China Tuesday, June 8, 2010

Below is an article from Bloomberg on the Agricultural Bank of China IPO - Initial Public Offering tomorrow June 9th, 2010. An IPO is where a company gets listed on a stock exchange, and share investments are available to the public whether they are individuals large large institutions. Investing into company shares helps companies provide more jobs, perform research and development, and grow the company. Investing not only helps you grow your income, but it helps others involved grow too. Helping others while helping yourself is win-win. Teamwork and team efforts have the best chance to win the championship.

The Agricultural Bank of China was established to serve the country’s farmers and less affluent rural areas. The Philippines has the same opportunity to follow China's lead in in helping Philippine farmers as China is trying to do with their farmers.