Orwell, poverty is indeed the problem, but being banked or unbanked is, to be quite honest, not so important to the poor as to those banks and financial institutions gearing up to make billions of dollars. With a decent income and other benefits, the poor can manage (as we in the developed economies did) without so many financial services. Its nice to have them, of course, but its not so germane to poverty reduction. Moreover, experience from the developed countries in the 19th century, and from the East Asian miracle countries from the 1950s onwards, shows poverty can be very successfully reduced by channelling as much finance as possible towards formal SMEs and large businesses and helping develop and finance the productivity-raising networks that emerge between them. I give a little history on this in the following article on the sub-prime-style disaster that was microcredit in post-apartheid South Africa:
Posted by: milfordbateman@yahoo.com
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