The Federated States of Micronesia is comprised of more than 600 islands in the western Pacific ocean, broken down into four nation-states: Pohnpei, Kosrae, Chuuk and Yap. In recent years, the main focus for the government has been to foster sustainable agriculture in Micronesia, for the sake of farmers and the Micronesian economy.
Agriculture is a very large part of the Micronesian economy, and the majority of its economic activity revolves around subsistence agriculture and fishing, some of the country’s main crops including breadfruit, banana, taro and yams, its main exports being fish, black pepper and betel nut.
However, despite the fruitfulness and diversity of the Micronesian food supply, local communities have little opportunities to purchase fresh produce, because the majority of produce available in Micronesia is imported and expensive. The truth is that Micronesia can improve its agricultural environment by taking advantage of adequate resources and skilled farmers to improve the situation.
Virendra Verma, a researcher and faculty member at College of Micronesia – FSM, brought up key issues surrounding sustainable agriculture in Micronesia approximately nine years ago. In his research, his most prominent suggestion was finding more effective ways for farmers to raise livestock and grow food without wasting resources. He believed the best way to do this would be to train local farmers on how to effectively use sustainable and integrated agricultural systems.
In 2009, Dr. Virendra proposed the Western SARE project On-Farm Implementation and Demonstration of Integrated Sustainable Agriculture and Livestock Production Systems for Small-Scale Farmers in Micronesia, an intricate, hands-on plan that uses local resources to demonstrate integrated farming systems involving swine and crop production.
Some specific objectives of the project are as follows:
- To develop cropping systems for multipurpose crops in order to maximize sustainable production.
- To develop swine production systems based on local resources.
- To develop easy techniques for using various components of crops for many purposes, such as food and nutrients for plants.
- To educate and train farmers the necessary components of improving and carrying out sustainable agriculture in Micronesia.
In the proposal year, this project was awarded $38,220 and approved by Sustainable Agriculture Research and Education (SARE). From 2009 to December 2011, Dr. Viendra’s plan proved to be active and successful, as it resolved many concerns within Micronesian agriculture.
The program held training for agricultural professionals that focused on key concerns within the scope of food security and family well-being. Activities in the training included presentations, hands-on activities, discussions and a variety of “field trips” that covered topics such as vegetable production, chicken farming and food processing. Additionally, workshops were taught covering a wide range of topics, also focusing on food security and sustainable measures.
In total, 80 people attended training activities in Chuuk, Palau and Yap, and participation was nearly equal for males and females; 47 percent of the participants were male and 53 percent were female. Likewise, 13 percent of the program participants were agricultural extension agents and 23 percent were farmers. This diverse turnout and the information relayed through the training made this program widely successful and beneficial in terms of improving sustainable agriculture in Micronesia.
The training, workshops and presentations that shaped this program were crucial in increasing the local population’s awareness regarding the importance of implementing effective and sustainable agricultural production. Due to the training, farmers are now able to make better use of their crops, and they are able to produce at higher rates, both things that have the power to improve the Micronesian economy in the coming years.
– Alexandra Dennis
Photo: Flickr
Humanitarian Aid to Croatia and Its Children
SOS Children’s Villages International is providing humanitarian aid to Croatia specifically targeted at children in the context of a struggling economy, high poverty rates and high unemployment levels.
In the wake of the war with the former Socialist Republic of Yugoslavia that lasted from 1991 to 1995, Croatia has struggled to recover from the decimation of its economic infrastructure. The six-year-long recession beginning in 2008 also contributed to Croatia’s weak economic structure.
Unemployment remains relatively high at 16.1 percent. The proportion of the population living at or below the national poverty line is 19.5 percent. The historic economic hardships that contribute to these statistics are clear, but how do these statistics affect the most vulnerable population, Croatia’s children?
Children in Croatia took the hardest hit from the 2008 recession, with child poverty rising over 50 percent. Poverty and unemployment have contributed to an increasing number of children being placed in institutions because families living below the poverty line are unable to feed or care for these children.
Children with mental and physical disabilities, behavioral issues or psychological problems are particularly at risk. Croatia’s infrastructure does not have the specialized centers to adequately accommodate and support these children. Their families are offered very little support and the children are often removed from their families and placed in institutions where they are deprived of the parental support and specialized care that they need. With little support from within local communities, SOS Children’s Villages has stepped in to provide humanitarian aid to Croatia and its children living in poverty.
SOS Children’s Villages International was founded in 1949 by Hermann Gmeiner in response to the proliferation of orphaned children after World War II. Gmeiner’s vision was to provide loving care in a family environment for children that were without parental care for whatever reason, and to help families stay together so they could care for their children. SOS Children’s Villages now operate in 135 countries through the support of donors, child sponsors, partners and friends.
SOS Children’s Villages seeks to provide humanitarian aid to Croatia by supporting local children, young people and families. Children in institutions are placed with loving SOS families to receive essential care, attention and support. SOS provides housing for young people where they can learn to live semi-independently. Families also benefit from kindergartens that will look after their children while they work.
Humanitarian aid to Croatia’s children also extends to children affected by the 2015 refugee crisis, many of whom are alone. SOS Children’s Villages works with local organizations to respond to the evolving needs of children affected by the crisis.
SOS Children’s Village has two locations in Croatia, providing support to children, young people and families throughout the country. Humanitarian aid to Croatia from SOS Children’s Village helps support families and children struggling with poverty.
– Sydney Lacey
Photo: Flickr
Modernizing Credit Access in Azerbaijan
Many of the obstacles to credit access in Azerbaijan are similar to the ones present in other countries. It is particularly difficult for businesses to secure a line of credit. Lenders require extensive collateral and often charge high interest rates. Encouragingly, there are government programs that enable particularly small businesses to secure funding even if they cannot secure a line of credit from a private institution.
Poor financial literacy, especially among business owners, is also impeding credit access in Azerbaijan. Many are often denied loans because of problems that they could rectify if given the needed support and education. For example, many Azerbaijani businesses fail to keep written records because they fail to understand that this impacts their perceived creditworthiness.
Improving financial literacy is an important part of expanding credit access in Azerbaijan. The MicroFinance Bank of Azerbaijan has reported that consumer loans, in particular, are being disbursed at a much higher rate than before, suggesting that creditors are becoming more willing to lend more liberally to reasonably worthy clients.
Also noteworthy are the extensive efforts that are underway to modernize the financial system and promote new lending and borrowing practices. The country’s first private credit bureau was recently established and intends to promote risk pooling and information sharing among the 20 largest domestic financial institutions. It is anticipated that this alone will greatly improve credit access in Azerbaijan by promoting responsible lending and eliminating some of the logistical hassles of applying for and granting credit.
– Michaela Downey
Photo: Flickr
Credit Access in Georgia Among the Best in the World
Georgia is ranked as one of the best countries in eastern Europe and central Asia for credit access. Very well-qualified borrowers are able to secure lines of credit without too much difficulty, and the country’s financial system is conducive to lending. It is worth noting that a significant share of applicants are denied because they have unacceptably high levels of existing debt.
However, credit access in Georgia is an issue mainly for new businesses. It is estimated that 40 percent of the small to medium-sized enterprises in Georgia that need credit cannot access it because they are denied or discouraged from even applying. Those who can theoretically be approved for loans often find that the interest rate offered to them is prohibitively high. Seventy percent of applicants for financing said that high interest rates were an issue for them.
Another more minor problem is that it is easier to get a loan in U.S. dollars than it is to get a loan in Georgian lari. As a result, the exchange rate is depreciating and borrowers are extremely vulnerable to fluctuations. Many borrowers are not even aware that borrowing in a foreign currency exposes them to this kind of risk. This is a good example of the unintended consequences of poor access to credit denominated in the local currency.
Fortunately, those who are able to borrow thanks to microfinance programs offered by the U.S. and others generally report that they are happy with their experience. Georgia also has a good financial infrastructure in that there is centralized credit reporting, although many people do not fully understand how it works and are unsure of what to do if they run into trouble.
The Smart Campaign has done extensive research on financial literacy and credit access in Georgia. This research has helped to identify several ways to improve credit access in Georgia, which, if enacted, promise to boost the Georgian economy by encouraging greater financial security while also liberalizing lending practices.
– Michaela Downey
Photo: Wikimedia Commons
The Many Forms of US Humanitarian Aid to Pakistan
On January 4, 2018, U.S. president Donald Trump’s administration announced that it would cut military aid to Pakistan on the grounds that Pakistan has not been doing enough to combat the more than 14 terrorist organizations operating within its borders. Many of these organizations support international terrorist operations and carry out attacks within the borders of Pakistan.
The United States is concerned with the operations being carried out against its forces in Afghanistan, which borders Pakistan. The mountainous border is porous and is a haven for terrorists. Some regions are officially governed by the Pakistani government but under the de facto control of the terrorists. North and South Waziristan are the most contested territories.
The Pakistan government recently launched a military operation in North Waziristan to liberate the area from the terrorist organizations that controlled it. The continuing success of this operation could hinge on the possible $900 million cut in military and security aid from the United States. However, the Trump administration has made it clear that the cuts would not affect U.S. humanitarian aid to Pakistan.
The United States has been aiding Pakistan for many decades, with a focus on humanitarian aid and economic development. In the 1960s and 1970s, economic aid helped to build two major hydroelectric dams. During the 1980s and the early 1990s, the United States helped to build a large power station and Lahore University for Management Science. These are only a few examples of early and continued non-military aid to Pakistan.
Currently, most of the U.S. humanitarian aid to Pakistan is delivered by USAID. According to USAID, more than $7.7 billion has been spent on non-military aid to Pakistan. The United States government has budgeted $344.5 million in humanitarian aid to Pakistan for 2018. USAID projects in Pakistan focus on six major areas: energy, economic and agricultural growth, democratic and societal resilience, education and gender equality. Examples of USAID work in these areas are:
USAID energy projects have been successful because they are multifaceted. Not only do they increase the power output of the existing infrastructure, the funds also help repair it. The most important projects are the repairs of the hydroelectric dams. Repairing these dams increases their electrical output and increases the efficient use of water from rivers and reservoirs.
Agriculture contributes to 24.7 percent of Pakistan’s GDP. Up to 40 percent of the working population is employed by the agricultural sector. USAID has helped improve the agricultural sector by helping small and medium farms gain access to financing. They have also introduced new crops or modified versions of existing crops. A similar approach is used to help the private sector.
USAID has worked hard to increase access to common markets, education and government in an attempt to solidify social engagement. They have also worked to rebuild areas destroyed by internal conflict and help displaced families. Helping society function smoothly helps people feel that they are part of something bigger and are not being left behind. This helps to stabilize the fragile democratic government of Pakistan.
USAID has provided more than 18,000 scholarships for higher education over the last eight years, built or repaired over 1,300 schools since 2011 and increased the quality of basic education across the country.
U.S. humanitarian aid to Pakistan has helped to build two new hospitals in the last five years. USAID projects have helped over 9.4 million women and children. Working with the government of Pakistan, USAID plans to increase funding for women’s and children’s healthcare through 2025.
USAID has helped form a registration of 496,000 women to promote voting rights, awarded 6,000 college scholarships to women and improve the care and representation of gender-based violence.
U.S. humanitarian aid to Pakistan has been effective. Over the last three years, the country’s GDP has grown by an average of 4.6 percent and 2017 saw a 5 percent industrial growth rate. Other social issues such as gender equality will take much more time to show major results. The most important milestone came in 2013, when Mahmoon Hussain was elected president of Pakistan and Asif Ali Zardari stepped down. The role of the president of Pakistan is mostly ceremonial; however, this was the first time that a democratically elected president served a full term in Pakistan. Hopefully, with time Pakistan will begin to transition and will be seen as a pillar of stability and peace in the region rather than a place of instability and violence.
– Nick DeMarco
Photo: Flickr
Microfinance Growing Credit Access in Guatemala
Credit access in Guatemala is a make-or-break factor in determining the success of a business, regardless of its size. Credit allows businesses and their owners to make purchases that typically lie outside of their disposable income. This often includes startup costs and capital improvements; however, it can also be used for everyday expenses such as payroll.
Larger companies tend to have an easier time attracting creditors, whereas smaller businesses often have trouble, an alarming problem for a country where 60 percent of the economy is made up of small businesses.
Banks are the most common provider of credit access in Guatemala. Microlending is the main reason people turn to banks for credit access, as it allows citizens who do not have any credit history to build credit in a timely fashion. As of now, there are 24 microfinance institutions in Guatemala.
The top five microfinance institutions in Guatemala are:
However, since 2014 there has been an increase in the default rates on microloans. Rocael Garcia, manager of the microfinance firm Finca, credits this problem to people in rural areas having less ability to pay and people in the middle class having less willingness to pay.
Other, less conventional ways of acquiring credit include financial freedom, venture capital and equity investors. While some people try to acquire credit access on their own, it proves to be difficult, as the government controls 50 percent of the financial services offered in Guatemala.
Of the three unconventional methods above, venture capital is the strongest, most secure option. There is a 39 percent chance that Guatemalan entrepreneurs will successfully find venture capital. Since 2014, the amount of people looking into venture capital has steadily increased.
Equity investors are considered to be the least effective sources of credit access in Guatemala, as it is incredibly difficult to raise money by issuing shares on the stock market. To make the process even more difficult, a public offering is only allowed if it is previously registered according to the Law of Value Markets.
Credit access in Guatemala continues to be available as the country focuses on economic opportunity and financial transparency. While the distribution of income remains relatively unequal, credit access – or rather, the opportunities given to business owners who have access to credit – steadily works to even out the scale.
– Chylene Babb
Photo: Flickr
3 Historically Important and Impactful Vaccinations
Polio Vaccine
Polio is a disease caused by the poliovirus that can degrade an individual’s spinal cord and musculature. In extreme cases, polio leads to muscle paralysis and death if the paralysis invades muscles used for breathing. In 1952, Jonas Salk developed the first effective polio vaccine. After the development of the vaccine, mass immunization campaigns took place throughout the United States.
Governments then distributed polio vaccines throughout the world. By 1989, polio was eradicated in the Americas, and as of 2017 only Afghanistan, Pakistan and Nigeria had recorded cases of polio. Overall, the polio vaccination campaign is considered one of the most important and impactful global health campaigns in human history.
Smallpox Vaccine
Smallpox is an infectious disease most commonly known by the distinct progressive skin rash it causes that spreads across the body. The disease also gives individuals a fever and severely weakens the body. Approximately three out of 10 individuals that have smallpox die. Smallpox is believed to have dated back to the Egyptian era and caused many deaths throughout global civilization.
A vaccination for smallpox was formally discovered and published in 1798 by Edward Jenner. Throughout the 19th century, smaller scale vaccination campaigns attempted to eliminate the disease’s prevalence. It was not until 1967 that the World Health Organization coordinated a massive vaccination campaign to eradicate the disease globally. In 1977, the last epidemic of smallpox occurred in Somalia.
In 1980, the World Health Assembly officially declared the world rid of the disease thanks to the distribution of these important and impactful vaccinations. Today, the Centers for Disease Control and the World Health Organization describe smallpox eradication as the biggest achievement in public health history.
Yellow Fever Vaccine
Yellow fever is a mosquito-borne disease that affects countries in equatorial climates. Yellow fever causes serious bleeding of the internal organs and in many cases results in death. The illness derives its name from the jaundice symptoms, or yellow discoloration of the skin, that usually result from infection. In 1937, while conducting research at the Rockefeller Foundation in Ecuador, microbiologist Max Theiler developed an effective vaccination strain.
Later, the global health community distributed the vaccine to the countries most affected by the illness. In 1952, Theiler received a Nobel Prize for his efforts in disease eradication. Today, yellow fever outbreaks are common, but these important and impactful vaccinations continue to save millions of lives.
Furthermore, countries with disease prevalence are taking massive steps to eliminate yellow fever. For instance, as of January 2018, the Nigerian government has set a goal to vaccinate 25 million individuals in hopes of meeting a global effort to end all yellow fever epidemics by 2026.
Vaccinations are one way that foreign aid and global health work hand in hand to genuinely help humanity. While there are more diseases that need to be researched and certainly more vaccinations to distribute, it is important to take stock of historical public health achievements and incorporate their successes into future efforts.
– Daniel Levy
Photo: Wikimedia Commons
Farmer Training Promoting Sustainable Agriculture in Micronesia
Agriculture is a very large part of the Micronesian economy, and the majority of its economic activity revolves around subsistence agriculture and fishing, some of the country’s main crops including breadfruit, banana, taro and yams, its main exports being fish, black pepper and betel nut.
However, despite the fruitfulness and diversity of the Micronesian food supply, local communities have little opportunities to purchase fresh produce, because the majority of produce available in Micronesia is imported and expensive. The truth is that Micronesia can improve its agricultural environment by taking advantage of adequate resources and skilled farmers to improve the situation.
Virendra Verma, a researcher and faculty member at College of Micronesia – FSM, brought up key issues surrounding sustainable agriculture in Micronesia approximately nine years ago. In his research, his most prominent suggestion was finding more effective ways for farmers to raise livestock and grow food without wasting resources. He believed the best way to do this would be to train local farmers on how to effectively use sustainable and integrated agricultural systems.
In 2009, Dr. Virendra proposed the Western SARE project On-Farm Implementation and Demonstration of Integrated Sustainable Agriculture and Livestock Production Systems for Small-Scale Farmers in Micronesia, an intricate, hands-on plan that uses local resources to demonstrate integrated farming systems involving swine and crop production.
Some specific objectives of the project are as follows:
In the proposal year, this project was awarded $38,220 and approved by Sustainable Agriculture Research and Education (SARE). From 2009 to December 2011, Dr. Viendra’s plan proved to be active and successful, as it resolved many concerns within Micronesian agriculture.
The program held training for agricultural professionals that focused on key concerns within the scope of food security and family well-being. Activities in the training included presentations, hands-on activities, discussions and a variety of “field trips” that covered topics such as vegetable production, chicken farming and food processing. Additionally, workshops were taught covering a wide range of topics, also focusing on food security and sustainable measures.
In total, 80 people attended training activities in Chuuk, Palau and Yap, and participation was nearly equal for males and females; 47 percent of the participants were male and 53 percent were female. Likewise, 13 percent of the program participants were agricultural extension agents and 23 percent were farmers. This diverse turnout and the information relayed through the training made this program widely successful and beneficial in terms of improving sustainable agriculture in Micronesia.
The training, workshops and presentations that shaped this program were crucial in increasing the local population’s awareness regarding the importance of implementing effective and sustainable agricultural production. Due to the training, farmers are now able to make better use of their crops, and they are able to produce at higher rates, both things that have the power to improve the Micronesian economy in the coming years.
– Alexandra Dennis
Photo: Flickr
Farmers Gain New Options for Credit Access in Burundi
Burundi is a resource-deficient country that has been struggling to emerge from years of civil war. Underdeveloped in the manufacturing sector with the agriculture area accounting for roughly 40 percent of its GDP and employing over 90 percent of the population, the large majority of Burundians rely on agriculture to make a living. In order for the people of Burundi to grow income-generating businesses in the agricultural sector, the demand for financial assistance must be able to meet the supply. Poverty among the population has limited the capacity for credit access in Burundi.
Being able to obtain a loan at banks in Burundi is not easy; Burundi ranks 129th out of 137 economies in the 2017-18 Global Competitiveness Index compiled by the World Economic Forum. As a result of this difficulty, most entrepreneurs turn to loan sharks.
Traditional banking services are not sturdy or large enough to serve the population’s needs in building assets and establishing property. Retail and corporate banking is at a very early stage of development and many depend on microcredit or informal lending for credit access in Burundi.
Burundian farmers rely on agriculture for their livelihoods, and One Acre Fund (OAF) has experienced an immense demand from these farmers for the services they offer. One Acre Fund is a nonprofit that offers credit and guidance in order to assist small landowners in growing their way out of famine and help them build thriving futures. Burundi is just one out of the many developing countries they serve.
OAF offers a complete package of services, utilizing a four-step market-based strategy that allows the organization to remain financially sustainable and grow to touch the lives of more farmers each year.
Financing for quality seeds and fertilizer is given to farmers on a credit basis, and they are offered a flexible repayment plan that allows them to repay their loans in any amount throughout the term.
Farm inputs are delivered to areas that are within walking distance of all the farmers that OAF serves.
Trained professionals offer the farmers guidance on advanced agricultural techniques throughout the entire season.
Solutions for storing crops and techniques on monitoring the constant variations of the market are taught to the farmers so that they are able to time the sale of their crops in order to maximize profits.
This strategy has allowed for thousands of families to yield higher-quality crops without spending additional funds. With Burundi being one of the poorest countries globally, farmers that are usually starting at a low-profit baseline have seen large improvements in their earnings since being involved with One Acre Fund. Subsequently, retention of farmers and loan repayment rates in Burundi are some of the highest of all the countries OAF serves. By providing all of these services in one, One Acre Fund allows farmers a useful way to get farming help and credit access in Burundi.
– Zainab Adebayo
Photo: Flickr
Expansion of Credit Access in Vietnam Vital for Small Businesses
Access to loans is important to SMEs, especially those just starting up, and many of them need this option to survive in the market. Many SMEs require money from loans to invest in new machinery and technology to become more efficient, stay competitive and make a profit.
SMEs struggle to stay competitive not only because of credit access in Vietnam, but also because of well-funded, larger businesses. This is where one of the issues with access to credit comes into play. Large enterprises are not only preferred by foreign investors, but also by local banks. With a better guarantee to make a profit, banks prefer providing loans to these steadier businesses instead, believing that most SMEs are too much of a risk.
It may come as a surprise that approximately 70 percent of SMEs technically have credit access in Vietnam. The issue arises in the fact that many of the businesses taking out these loans face other difficulties in the access of these funds, and most would prefer not to. SMEs often pay up to 10 percent interest or even higher on loans, while larger enterprises only pay around 5 percent at the highest. Banks also tend to require fixed collateral for the loan, such as land.
Another issue regarding credit access is that of gender. Traditional gender roles in Vietnam often affect a bank’s decision in providing a loan, worrying that women will make less profit than a man would, or simply denying access because they are female. In addition, most females do not own land to provide the fixed collateral. This is an obstacle for females in large businesses, but especially for those in SMEs.
To combat this, some peer to peer platforms, crowdfunding for businesses by investors, have appeared in Vietnam. Although this gets around stricter banks, allowing loans to be given to what the bank would consider high-risk businesses as well as more equal opportunities for both male and female business owners, it still is not enough. Not only do the current platforms not have enough willing investors providing loans to SMEs, but they also still struggle to compete with large enterprises that are well funded by the banks.
There is plenty of potential for SMEs to help improve the country’s economy and GDP, but credit access in Vietnam is preventing this from happening. In the future, the government may possibly enforce better rules to allow more SMEs to flourish, but until then, investment is one of the few ways SMEs can be funded with loans. The country simply needs more interested investors, both local and foreign.
– Keegan Struble
Photo: Flickr
Better Credit Access in South Africa to Boost Economic Growth
Previous research from the University of Cape Town had already shown the strong relationship between economic growth and credit expansion in South Africa. Recently, economist Roelof Botha from the Gordon Institute of Business Science reiterated the idea that credit expansion – especially by financial institutions lending money to unsecured borrowers – could invigorate the struggling economy.
Though South Africa is experiencing a declining economy, the household debt to income ratio has dropped consistently, from 87.8 percent in 2008 to 73.2 percent in 2017. This ratio appears to be exceptionally low compared to South Africa’s trading partners like Australia, which exceeded 200 percent in 2017 despite its growing economy.
Notwithstanding a high percentage of homeownership (more than 54 percent), Botha argues that the low value of the homes – which disqualifies them as collateral – has become “unnecessary obstacles” for the households to obtain credit from formal channels.
Lowering the bar for obtaining credit allows consumers to purchase more goods or even to start small businesses, which are both beneficial to the overall economy. Furthermore, research from Innovations for Poverty Action shows that better access to credit could not only increase the quality of life of the borrowers, but also give lenders more profit.
In an article published by Boston Consulting Group in April 2017, researchers claimed that though the percentage of South African adults who have borrowed from commercial banks rests at a modest 12 percent, informal credit accounts for a greater portion of the entire credit market.
Compared to formal channels, debts from informal channels are more difficult to regulate and might exacerbate the financial situation of already unsecured borrowers due to the sky-high interest rate.
In addition, the South African informal debit market bears an alarming default rate of an estimated 12 percent – much higher than countries that are risk-averse like China (1 percent) and Germany (2 percent).
The Reserve Bank has already started to lower its repo rate and plans to reduce the rate further to increase credit access in South Africa in 2018, expecting better economic growth. The steady inflation rate, averaging 4.9 percent through most of 2017, also provides households with better credit affordability.
From a long-term perspective, Botha said, the number of households with a buying power of R120,000 or higher per year experienced a dramatic increase from 200,000 in 2002 to 2.7 million in 2016, making the average real growth 15 percent, which is much greater than the average economic growth rate. Therefore, credit expansion should have the potential to further this growth.
Expanding credit access in South Africa provided by regulated financial institutions has the potential to increase purchase power, lower unemployment rates and eventually boost economic growth while removing the financial barriers imposed by unregulated informal credit, helping people to exit poverty.
– Chaorong Wang
Photo: Flickr