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I would like to add that maybe the problem are not the [micro|macro]-loans, but people. Loans are basic bricks for an economic development in any society. Sadly, they can't save a bad business from failure.

So my point is that maybe a poor borrower investing in a bad business will end up poorer. Other scenario, mentioned in the article, are poor people lending money for non productive expenses.

A basic financial advice applies here: Invest in a productive business and try not to borrow money for non productive expenses.




I think you basically reiterate the point here: if you are in poverty, you don't have enough money for basic necessities (read: non-productive expenses); therefore, you can choose to spend any extra money on those necessities, or go without.

In other words, microloans don't solve poverty.




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