YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章Kooper » 週六 12月 11, 2010 3:41 pm

Dear ISGers,

Please read the article listed below, write a summary or essay on it, and pick one to three new words from it.

India Microcredit Faces Collapse From Defaults:
http://www.nytimes.com/2010/11/18/world/asia/18micro.html?_r=1&scp=3&sq=initially%20the%20work%20of%20nonprofit%20groups&st=cse
Kooper
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Re: YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章Kooper » 週六 12月 18, 2010 4:43 pm

Dear ISGers,

The meeting tomorrow will start 30 minutes earlier to accommodate to Chiron's schedule. Sorry for the late notice.

Regards,
Kooper
Kooper
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Re: YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章Kooper » 週六 12月 18, 2010 11:03 pm

Dear ISG members,

This has been a very exhausting week for me and will continue to stay so over the weekend. I am afraid I have been wiped out and have to take a day off tomorrow. I hate it when I get this way, especially when Kat is doing whatever she can to make it to the meeting tomorrow. Please accept my apology.

Chiron(Navi),
Please help initiate the group discussiona and don't forget to include Kat.

Kooper
Kooper
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Re: YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章chiron » 週日 12月 19, 2010 12:14 am

Kooper 寫:Dear ISG members,

This has been a very exhausting week for me and will continue to stay so over the weekend. I am afraid I have been wiped out and have to take a day off tomorrow. I hate it when I get this way, especially when Kat is doing whatever she can to make it to the meeting tomorrow. Please accept my apology.

Chiron(Navi),
Please help initiate the group discussiona and don't forget to include Kat.

Kooper

Sure, sure, no problem. But I don't seem to have her Skype account. Do you have?
Please call me Na'vi!
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chiron
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Re: YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章Sherry Liao » 週日 12月 19, 2010 7:03 am

My essay:

30 years ago, when the cause of microcredit was first championed by Bangladeshi economist Muhammad Yunus and other advocates, it was an innovative approach to reducing poverty. By giving tiny loans to those who were rejected by normal bank system, it helped the poor to start their own business and improve their economic condition. After 30 years in development, the industry of microfinance has been prospered globally; however, it has also lost sight of its original aim.

Many poor people who have taken the loans are wilting under the pressure of exorbitant interest rates and struggling to repay the mounting debt. This is resulting from the rapid growth of the profit-oriented private microfinance companies. Those reckless lenders try to pursuit high profits by extending loans to the poor at high interest rates without considering their ability to repay. Some of the loans are going to activities that are not income-generated and the debtors have to take a second loan to repay the debt, which soon turn into a vicious circle. Some borrow money to start their own business, but it is hard to make a profit without business and financial knowledge.

In Andhra Pradesh, India, the pressure and inability to pay loans has caused serious problems. With incitement from some politicians to stop paying loans, the industry is facing imminent collapse from defaults. It is foreseeable that other states in India and even some other countries will face similar predicaments sooner or later.

This is a crisis many countries need to confront and manage with. Legislators in the state of Andhra Pradesh have passed a law to restrict the way companies lend and collect money. However, regulating the lending companies is not enough to solve all the problems. It is critical to change the structure of economy and improve the financial condition of the borrowers who are struggling above the poverty line.
Sherry Liao
YOYO member
 
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Re: YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章chiron » 週日 12月 19, 2010 7:28 am

egg (v) 慫恿, 煽動[(+on)]
Egged on by his wife, Macbeth planned to murder his king.

grow-at-any-cost
The seemingly noble idea of extending home ownership to low-income households threatened to collapse the global banking system because of a reckless, grow-at-any-cost strategy.

stringent (a) 迫切的
Legislators in the state of Andhra Pradesh last month passed a stringent new law restricting how the companies can lend and collect money.

Q:
1. Lenders are also having trouble making new loans in other states, because banks have slowed lending to them as fears about defaults have grown.

2. “The money lender lives in the community,” he said. “At least you can burn down his house. With these companies, it is loot and scoot.”
Please call me Na'vi!
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chiron
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Re: YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章Kat C » 週日 12月 19, 2010 12:39 pm

Dear Sherry,

You've done such a tremendous job with the essay, I feel that the least I can do to contribute to the group is to make some suggestions on the piece. I didn't have much to do because it's so beautifully written.

Here it is with suggested wordings:

---------
30 years ago, when the cause of microcredit was first championed by the Bangladeshi economist Muhammad Yunus and other advocates, it was an innovative approach to reducing poverty. By giving tiny loans to those who are rejected by the regular banking system, it helps the poor to start their own businesses and improve their economic conditions. After 30 years of development, the industry of microfinance is prospering globally; however, it seems to be losing sight of its original aim.

Many poor people who have taken the loans are wilting under the pressure of exorbitant interest rates and struggling to repay the mounting debts. This is resulting from the irresponsible practices of the profit-oriented private microfinance companies. Those reckless lenders pursuit high profits by extending loans to the poor at high interest rates without considering their ability to repay. Some of the loans are going to activities that are not income-generating and the debtors have to take a second loan to repay the debt, which soon turns into a vicious circle. Some borrow money to start their own business, but it is hard to make a profit without adequate business and financial knowledge.

In Andhra Pradesh, India, the pressure and inability to repay loans has caused serious problems. With incitement from some politicians to stop repaying loans, the industry is facing imminent collapse from defaults. It is foreseeable that other states in India or even some other countries will face similar predicament sooner or later.

This is a crisis many countries need to confront and manage. Legislators in the state of Andhra Pradesh have passed a law to restrict the way companies lend and collect money. However, regulating the lending companies is not enough to solve all the problems. It is critical to change the structure of the economy and improve the financial condition of the borrowers who are struggling below the poverty line.
---------------

The singular/plural for possessives is a tricky usage, and you can see the choices I made for the context they are in.

Nice chatting today and best of luck with your own teaching! :wink:
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Kat C
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註冊時間: 週三 9月 08, 2010 10:31 am

Re: YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章Sherry Liao » 週一 12月 20, 2010 11:30 pm

Hi Kat,

I can't believe it... what a surprise! :o

I always wanted to have my homework reviewed and revised. That's the BEST gift for me. Thanks! :D :D

And it's so nice to talk to you online. I learned a lot from it. :D :D :D
Sherry Liao
YOYO member
 
文章: 1398
註冊時間: 週五 12月 07, 2007 12:15 pm

Re: YOYO-ISG 101219 Tiny Loans and Big Debts Worry India

文章Kat C » 週二 12月 21, 2010 2:41 am

Hi Sherry,

I'm glad to be of some help. I'm leaving for LA so will have to miss the next ISG meeting. Happy Holidays and see you next year! :lol:
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Kat C
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