When Muhammad Yunus, the economist who founded the influential Grameen-Bank, won the 2006 Nobel Peace Prize for his pioneering work in aiding the poor, many hoped microcredit would become the next big-thing.
In Latin America - Acción and FINCA International - and the success that the two of them have had in alleviating-poverty in specific pockets of Latin America and the Caribbean is vital when trying to understand the impact of microcredit.
Acción went from distributing 276,000 loans to 2,375,000, and the average loan has risen from $581 to $829. Almost all of the loans have been repaid in full, strengthening the microcredit cycle in Latin-America.
As just one example of the way in which enterprises in various countries are resorting to microcredit, in Medellín, Colombia, Mayor Sergio Fajardo has turned to a variety of private companies to support microlending projects.
Via Brazzil Mag
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