Micro credit and discredit.We congratulate Muhammed Yunnus and the Gameen Bank of Bangladesh on receiving the Nobel Peace Prize The Nobel Peace Prize (Swedish and Norwegian: Nobels fredspris) is the name of one of five Nobel Prizes bequeathed by the Swedish industrialist and inventor Alfred Nobel. for 2006. They earned the prize because they created a system of credit which enables the poor to borrow small amounts to finance cottage industries cottage industry: see sweating system. thereby enabling them to improve the lives of their families. It has had an impact on millions in Bangladesh and microcredit microcredit, the extension to poor individuals of small loans to be used for income-generating activities that will improve the borrowers' living standards. The loans, which may be as little as $20 for very poor borrowers in some developing countries, typically are has now become a world-wide movement. The discredit in this story belongs to Canada. Our government has reduced its support for these microcredit programs. In the year 2000, the Canadian International Development Agency The Canadian International Development Agency (CIDA) is a Canadian government agency which administers foreign aid programs in developing countries. CIDA operates in partnership with other Canadian organizations in the public and private sectors as well as other contributed $78 million. This allocation was steadily reduced until in 2005, the amount was only $25 million. Canada will receive no prizes for this performance. We understand the thinking that guides Canada's foreign aid programs. Canada usually funds projects overseas that will spend a large part of their allocations on goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. that originate in Verb 1. originate in - come from stem - grow out of, have roots in, originate in; "The increase in the national debt stems from the last war" Canada. Since microcredit projects spend nothing in Canada, it has little value to the funders. The Nobel Peace Prize should provide the incentive to make us take steps to end this kind of self-serving aid. We should support projects that give real aid to the beneficiaries. We can make a start with the Global Microcredit Summit which will be held in Halifax (Nov. 12-15, 2006). More than 2,000 delegates from more than 100 countries are expected. They are gathering to assess the progress made toward the Summit's goal of reaching 100 million of the poorest families in the world. It is a chance for Canada to display real generosity and to support an effective aid program. We suggest that Prime Minister Stephen Harper attend the Summit and bring a check of $78 million or more with him. With this gesture he will show the world that Canada is serious about economic development programs that aid the very poorest people in the world. --L.K. |
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