INTL 1101 Lecture Notes - Spinning Jenny, Protestant Work Ethic, Microfinance
4 Jun 2014
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Document Summary
Occurred in britain: enclosure movement: wealthy farmers bought land from small farmers (economies of scale, poor farmers move to cities for work. Investment opportunities: expanding a business, buying land or equipment. Need everything that others need, but are more prone to disaster than others. The poor tend to not need to plan very far ahead in the future need more immediate solutions for short-term goals. Informal economy: unregulated, unprotected markets (ie. black market, flea market, garage sales, ebay, etc. ); without business protection and benefits, informal economies are difficult to regulate and start-up. Banking inefficiencies: cost of loans is large can"t do small loans; lack collateral. Micro-finance: includes micro-credit (ie. small loans), insurance, savings, remittances, etc. 97% return rate, 96% of the loaners are women. No collateral financed by deposits (no donations since 1995) Fixed, low interest rates of ~22%; 8% for house loans, 5% for student loans, 0% for struggling members (ie. beggars)
