{"id":5261,"date":"2008-06-21T11:01:52","date_gmt":"2008-06-21T16:01:52","guid":{"rendered":"http:\/\/sepiamutiny.com?p=5261"},"modified":"2008-06-21T08:20:45","modified_gmt":"2008-06-21T13:20:45","slug":"microcredit_in","status":"publish","type":"post","link":"http:\/\/sepiamutiny.com\/blog\/2008\/06\/21\/microcredit_in\/","title":{"rendered":"Microcredit in a Nutshell"},"content":{"rendered":"<p>Hey folks &#8211; been on the road the past few weeks so haven&#8217;t had a chance to post.  But, I did like this nugget from Tyler Cowen on <a href=\"http:\/\/www.marginalrevolution.com\/marginalrevolution\/2008\/06\/is-microfinance.html\">one of the reasons Microcredit works<\/a> &#8211; <\/p>\n\n<blockquote>If you don&#8217;t pay up, your associate has to. The reality is that the person left holding the bag &#8212; who knows you well &#8212; will come seize your TV set or in some cases the process is a bit less pleasant. Part of the efficiency of microfinance is simply the separation of the lending and the &#8220;thug&#8221; functions. <\/blockquote>\n\n<p><a href=\"http:\/\/www.sepiamutiny.com\/sepia\/archives\/005127.html\">I&#8217;m a Microcredit fan overall<\/a> but like Cowen, instead of seeing it as <a href=\"http:\/\/www.sepiamutiny.com\/sepia\/archives\/005211.html\">a whole new way of doing business<\/a>, I see it as an interesting alternative to traditional charity for a very underserved margin.  However, even at this margin, many of the old rules of capitalism still apply.  So I look forward to the day when Microcredit as well as its borrowers grow up, credit becomes more formal, and hopefully the &#8220;thug function&#8221; becomes the final reserve of the state.<\/p>\n\n<!--more-->\n","protected":false},"excerpt":{"rendered":"<p>Hey folks &#8211; been on the road the past few weeks so haven&#8217;t had a chance to post. But, I did like this nugget from Tyler Cowen on one of the reasons Microcredit works &#8211; If you don&#8217;t pay up, &hellip; <a href=\"http:\/\/sepiamutiny.com\/blog\/2008\/06\/21\/microcredit_in\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[38],"tags":[],"_links":{"self":[{"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/posts\/5261"}],"collection":[{"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/comments?post=5261"}],"version-history":[{"count":0,"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/posts\/5261\/revisions"}],"wp:attachment":[{"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/media?parent=5261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/categories?post=5261"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/sepiamutiny.com\/blog\/wp-json\/wp\/v2\/tags?post=5261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}