1. Micro credit -Dissatisfied donors -Market failure -Win-win situation -Incentives to work

2. Market failure - No collateral -Money lenders, pawnbrokers

3. Micro credit today 29 million borrowers (1999) Ambition 100 million 2005 1/2 billion people reached

4. Famous examples Grameen BankBangladesh Banco SolBolivia Bank Raykat Indonesia

5. History Bangladesh famine 1974 Mohammed Yunus, economics teacher Started to give small personal loans Founded Grameen Bank 1976 2 Million members 1996

6. Mechanisms Group lending Increasing loan size Weekly repayment and bank meetings

7. Social impacts Improve women's position Increase school attendance Better self esteem Many have been lifted out of poverty

8. But, no win-win situation 1 % of programs financially sustainable Probably 5 % of NGO programs will be Programs that target the poorest only cover 70 % of the costs. These programs will have to stop or raise interest rates to survive without further donations.

9. Discussion More poor people can be helped if the money is recycled in financially sustainable programs. That means higher interest rates for the poor Should poverty alleviation for the poorest of the poor be self financing?