Microfinance in Mexico or thinking about rebar.

Microcredit as a means of fighting poverty By establishing Grameen Bank in 1983, Muhammad Yunus sought to realise his vision of self-support for the very poorest people by means of loans on easy terms. The bank has since been a source of inspiration for similar microcredit institutions in over one hundred countries. Banks in the traditional system have been reluctant to lend money to anyone unable to give some form or other of security. Grameen Bank, on the other hand, works on the assumption that even the poorest of the poor can manage their own financial affairs and development given suitable conditions. The instrument is microcredit: small long-term loans on easy terms. When Grameen Bank was awarded the Peace Prize in 2006, more than seven million borrowers had been granted such loans. The average amount borrowed was 100 dollars. The repayment percentage was very high. Over 95 per cent of the loans went to women or groups of women. Experience showed that that ensured the best security for the bank and the greatest beneficial effect for the borrowers' families. "Grameen Bank - History". Nobelprize.org. 19 Apr

Sergio Navajas Microfinance in Latin America and the Caribbean Data Update- Multilateral Investment Fund Inter-American Development Bank ( ).

Navajas, Sergio. Microfinance in Latin America and the Caribbean : how large is the market/ Sergio Navajas, Luis Tejerina. p.cm. (Sustainable Development Department Best practices series ; MSM-135)

Ricardo Salinas, the Mexican billionaire whose banking and retail empire spans eight countries, is looking to expand his microlending business by offering the loans to lower income populations in the U.S. Ricardo Salinas said in an interview at Bloomberg’s headquarters in New York, that Grupo Elektra SA seeks clients at the “bottom of the pyramid” in terms of income and assets; U.S. households with less than $25,000 in annual income fit that profile. “[It] would be my dream to set up a series of 10,000 branches over the U.S. that addressed the bottom of the pyramid,” he said, adding, “It’s complicated because of the environment, but we’re looking at it.” In the same interview, Salinas mentioned a desire to serve those who are “unbanked,” by entering the U.S. market with loans and “micro- insurance” plans that would entail paying $10 a week, for example, for a $5,000 life-insurance policy. According to government statistics, Ricardo Salinas, who is 56, has used loans of an average size of $400 to build Banco Azteca, Mexico’s 10th largest bank in terms of credit portfolio. The Mexican Banco Azteca, started by Salinas in 2002, has 12 million loan accounts across Latin America. Banco Azteca, like many other banks in Mexico, charges interest rates high enough that customers in some cases end up paying double the amount of the original loan over its full term, Salinas said. But without higher interest rates, Banco Azteca wouldn’t be able to offer loans to poor people, he added. “Lots of people who like to help the less fortunate group of people at the bottom of the pyramid think that by regulating interest rates they’re going to do that, but it’s exactly counterproductive,” he said. Banco Azteca, based in Mexico City, began making loans to women about a year ago, to help them finance group businesses such as a dance studio or a restaurant. The bank signed up 400,000 women for the program in its first year and expects to have 1.5 million women sign up next year, according to Salinas. Harrison, C. Billionaire Salinas Seeks U.S. Entry to Target ‘Unbanked’. Bloomberg News. November 30, 2011 ( salinas-seeks-u-s-entry-to-target-unbanked-.html).

5 Myths About Microcredit Myth 1: Microcredit is a proven path out of poverty. Myth 2: Without microcredit, poor people would have no access to credit. Myth 3: Microcredit borrowers only use the money on their businesses. Myth 4: The poor only need access to credit to pull themselves out of poverty. Myth 5: Microenterprises are the way to grow an economy. Toyamafeb, K Myths About Microcredit. The Atlantic. FEB ( microcredit/71011/)

Teotitlan del Valle is one of the communities Served by Fundacion en Via. It is known for Its high quality weaving. Teotitlan is 18 miles east of Oaxaca City.

Doña Rosa Real discovered the process to create black pottery, barro negro, in the 1950s. Her pueblo, San Bartolo Coyotepec, has become a major tourist destination because of this craft. San Bartolo is 9 miles south of Oaxaca City

The red pottery center of the Valles Centrales is San Marcos Tlapazola, only ~25 miles from Oaxaca City

Navajas, Sergio. Microfinance in Latin America and the Caribbean : how large is the market/ Sergio Navajas, Luis Tejerina. p.cm. (Sustainable Development Department Best practices series ; MSM-135)