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12.01.2010

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Story of microcredit !

Microcredit was born way before M. Yunus.

Story of microcredit

To make the small, must omit many things, because microcredit has developed informally for centuries, before finding its modern form by Professor Yunus.

No, microcredit is not born thirty years ago in the brain as bright as integral with the future star system: Muhammad Yunus. The first cycle of savings and loans to the poorest would have appeared there almost 3,000 years in India, in the hands of usurers, merchants, or even "chit funds" (rotating savings and credit association).

In Asia, as in Africa, forms of microcredit developed over several centuries. These are groups of people, usually at the level of one or more villages, who can get a loan after making adequate savings for the guarantee. This is called "tontine" in West Africa, the "tandas" in Mexico, "cheetu" in Sri Lanka or of "arisan" in Indonesia.

Europe also experienced episodes of microfinance in the eighteenth and nineteenth century, the most significant may be the one inaugurated by Jonathan Swift, the father of epic Gulliver, following the great famines in Ireland. The writer, who suggested, in response to the shortage of food, "that Irish babies be sold to be eaten roasted, boiled or braised by the British," finally found a better solution. He created a system of funds for loans to support up to 20% of families in the country. What saved the head of some toddlers.

But render to Caesar what belongs to him. The creation of the Grameen Bank (http://www.grameen-info.org/) by Professor Yunus in the 70s in Bangladesh is the first experience of modern entrepreneurial response to financial exclusion of the poorest. It reverses the logic of the loan based on the guarantee fund for solidarity at the center of the credit. The loan is granted to an individual, usually a woman, provided he or she is part of a group of 4 or 5, which is committed to assist the borrower in its loan management. The rapid achievement of positive results, with repayment rates close to 97%, has the model of Grameen Bank to export worldwide.

10,000 microfinance institutions (MFIs) (article link "what an MFI") work now serves nearly 100 million beneficiaries of microloans. Organizations such as PlaNet Finance (http://www.planetfinancegroup.org/) work to enact and strengthen the system. Since 1998, PlaNet Finance establishes his action expertise and a network of 1,000 professionals worldwide who work on hundreds of programs with MFIs regularly noted. The sector is growing with gusto on the web (article "loans online" link). In 2005, Kiva (http://www.kiva.org/) started a revolution by offering Internet users around the world to lend their money. The platform has attracted 500 000 members who have paid approximately $ 150 million (July 2010) to support 90,000 microentrepreneurs. MicroWorld launches today under the auspices of PlaNet Finance.

After centuries of informal existence, microcredit is the heart of a new global industry, microfinance (link to article: "microfinance sector rising). Perhaps in favor of a radical awareness: exclusion due to poverty is evil best shared world, and it is urgent to find the keys to inclusive economic development.

This article is part of the special report: