This program at Tufts sounds like big news to me. I’m just wondering if microlending really works or if it’s a big Economist-driven fad. Reading about it, I still can’t figure out how it works. And why, for instance, if it generates a 9 percent return, it takes a philanthropic gift to jumpstart it. Or why, if microborrows have a low default rate they get charged in excess of 25 percent real interest rates.
Perhaps my cynicism is also feuled by the fact that microlending is also inspring fresh-from-B-school ventures having nothing to do with third-world development.
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