Micro credit is a form of facilitation of small loans to individuals in the developing world, who are otherwise considered not bankable and as such unable to obtain any loans in their own countries. I was first struck by the deep contrast of human existence and owning capabilities between Africa and the Western world when I read ‘The Shadow of the Sun’ by Ryszard Kapuscinski. It seemed utterly inconceivable that a family’s income could depend on a single pot, in which they would cook a dish and sell it to the fellow villagers for a small sum of money. The book inspired me to strive to understand more aspects of poverty and inequality both in Africa and worldwide.
Micro credit focuses on supporting forms of micro entrepreneurship and employment generation for mostly community based initiatives. The project started in Bangladesh, where it has enabled impoverished people to engage in self-employment projects that allow them to generate income, begin to build wealth, and at times exit poverty. The biggest micro-credit organisation is probably Kiva, which facilitated loans for nearly 2000 entrepreneurs. It’s strange to think that so much can depend on so little.