2017-03-29 Tuesday
Day 5
20 min
According to the reading passage, microcredit has helped millions improve lives in three aspects. On the contrary, as pointed out by the lecturer, its effectiveness is overstated.
First, while the author argues that microloans helps start businesses, the lecturer reveals a problem that the profit those business startups make is so small that those poor people even have to use the loans for food to survive.
Second, the reading material points out the microcredit is conducive to those who would normally be turned down by traditional banks, especially to women. However, according to the listening passage, the loans borrowed by women are often explored by their husbands or relatives who not only use the money but also leave the burden of repayment to those poor women.
Third, while the microloans, argues the author, work when gap exists between rich and poor countries, the effect is much limited, according to the lecture, because the microcredit cannot help the poor in rich countries.
Therefore, the microcredit is effective to some extent, but it has its own limitations in helping the borrowers improve lives for themselves and their communities.
