Microcredit is a relatively new word, first used in the seventies to name a specific type of loan, of a relatively low amount, given to poor people, so they could gain some economical independence. It was initially designed to provide access to credit to people who were so poor they wouldn’t be eligible to any in the traditional banking system. Microcredit started in Bangladesh, through Muhammad Yunus and his Graemeen Bank, and since then (and supported on the positive impact it had on millions of Bengali households), it has spread over the entire World as a viable way to have a positive impact in the poor population, giving them credit to put their best efforts and creativity in action to run away from poverty claws – and all of this under an economical Liberal method!
As all new successful theories, some Portuguese banks have started their microcredit programs, crediting themselves as an adaptation to our country reality of Graemeen’s methods. The problem is, I must say, I am not sure if those programs were really designed to give a chance to Portuguese poor people or are just a good publicity stunt for the banks involved.
Of course microcredit in Portugal has been able to change lives. It provides the means (usually a €5000 limited credit) to people with good ideas and will to push it forward and make a new business that will get them out of poverty and into financial independence! And that is something absolutely amazing! My only question is why was it only conceded to 1100 persons since it started in 1999 in Portugal…
If we want it to work, we need to get it near ordinary people, make it simpler. That was one of the secrets of Graemeen’s success, and one of the most important things the Portuguese microcredit process was unable to capture…
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