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Submitted by Anonymous on
I work in the sector and my work in Bangladesh & ongoing work in Pakistan suggests that the industry is ripe with problems, the poor would remain poor while these micro-finance lenders will be able to float shares in the stock market. If the dividends are shared with the borrowers, they might graduate out of poverty since this is not going to happen, even when the borrowers are allowed to buy shares, as their shares are locked up forever. The claims that managing micro loans results in higher interest rates is problematic since the field workers are poorly paid workers. If the world is serious in eradicating poverty, it needs to create sustainable employment opportunities and sustainable livelihood.