As the FT reports this morning:
The microfinance industry has been accused of “sucking blood from the poor” by the prime minister of Bangladesh as part of a growing backlash against the microlending business in the country of its birth.
I think microfinance in principle a ‚Äògood thing’.
Equally I am quite sure it can be corrupted. And I’m absolutely sure that the involvement of the Development Finance Institutions from Europe – such as the UK’s CDC plc – have helped corrupt it.
They have thrown money at these markets – almost all routed through tax havens – a sure indicator of where their own priorities are.
If as a result they’ve begun to destroy a source of hope for the poor – shame on them.