What are they?
Microcredits are small amounts of money loaned to poor people in developing countries that do not have the conditions for a usual credit.
These loans are given to people in extreme poverty in the compromise that they will start a small business and be able to pack back a small amount of interest rate.
What for?
The purpose of these credits is to stimulate the growth of businesses in these countries and thereby potentiating the growth of the economy. These credits are supposed to engage self-employment and therefore allow them to create an income, generate wealth and help to escape the extreme poverty.
“Give a man a fish and he will eat for today; teach him how to fish and he’ll eat for a lifetime”
Problems?
- People say that it isn't as successful as they thought it would be
- Issuers give them out for a profit, not the greater good
- They put poor people in debt
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