It must depressing to be of the left and see your pet projects bite the dust one after the other:
SKS, world’s largest microfinance service, drives debtors to suicide: The Associated Press has obtained portions of a suppressed independent investigation into the role that debt collectors working for microfinance giant SKS played in the suicides of desperately poor borrowers in the Indian province of Andhra Pradesh. SKS made global headlines when it received backing from a US venture capital firm, the Boston-based Sandstone Capital, and then had a highly successful IPO.
India Microcredit Faces Collapse From Defaults: India’s rapidly growing private microcredit industry faces imminent collapse as almost all borrowers in one of India’s largest states have stopped repaying their loans, egged on by politicians who accuse the industry of earning outsize profits on the backs of the poor.
Some time ago I read that micro credit relied on the social structure of the village for its high rates of repayment. That absent this the repayment rate might not be as high. This limited its transferability to developed countries. But it seems that it might fit in well, with loan sharks.
How do the left get away with claiming they care? Any unbiased assessment of outcomes makes them far worst than their bogyman capitalist. One on the whole enriches us while the other deprives us of our rights, wealth and life.
Graphic courtesy of Is Microcredit a Debt Trap?