Introduction
A small loan from a microcredit bank in Luanda, Angola, enabled one-time street peddler Ana Helena Domingos to buy goods in bulk and launch a now-flourishing wholesale operation, doubling her income in 10 months. (AP Photo/Jose Silva Pinto)
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Since the 1980s, millions of impoverished people around the world without access to banks have been able to take out tiny loans to start businesses. Nobel Prize-winning economist Muhammad Yunus, who established the first microfinance bank in Bangladesh and launched the modern microlending movement, claims microloans have lifted millions — especially women — out of poverty and spurred economic growth. But recent studies cast doubt on microcredit's effectiveness. Borrowers have been saddled with multiple loans at exorbitant interest rates, often having to borrow from loan sharks to make their microcredit payments. Economists fear overindebtedness could make borrowers even poorer and that a possible credit bubble could burst. Others worry that in recent years, for-profit investors have swarmed to the field, attracted by high returns on investment. Some governments have capped microlenders' interest rates, but the industry hopes to forestall regulation by adopting voluntary consumer protection measures.
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Dec. 09, 2022 |
International Sanctions |
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Apr. 2010 |
Evaluating Microfinance |
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Sep. 2009 |
Future of Globalization |
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Jul. 2009 |
Fixing Capitalism |
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May 18, 2007 |
Fair Trade Labeling |
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Sep. 28, 2001 |
Globalization Backlash |
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Jun. 09, 2000 |
World Trade |
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Jan. 29, 1999 |
International Monetary Fund |
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May 29, 1987 |
Third World Debt |
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Jun. 22, 1984 |
Bretton Woods Forty Years Later |
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Jan. 21, 1983 |
World Debt Crisis |
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Apr. 18, 1975 |
World Financing Under Stress |
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Sep. 08, 1971 |
World Money Crisis |
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Jul. 30, 1969 |
International Development Financing |
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Mar. 11, 1964 |
World Trade Parleys |
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May 23, 1962 |
Farm Products in World Trade |
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Apr. 27, 1945 |
Bretton Woods Agreements |
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Oct. 05, 1932 |
World Trade, Tariffs, and War Debts |
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