What kind of equity does Grameen have to absorb losses if they were to leverage up their winnings?

Best,

Will

Thanks very much for your comment. Your questions are to the point and interestingly address a project that I am currently working on for Grameen. I’m about to put up another post discussing a recently published article that addresses the effects of microfinance.

As I learn about microfinance, the unknowns in the field jump out at me. If I was a full blown idealist, I may have had my bubble burst.

I look forward to discussing the field and my experiences with you in person when I return to campus. Welcome to Haverford.

Regards,

Remy Olson

You are immersing yourself in an interesting field and its good to see idealism continues to knock around inside you, even if you are not quite sure what to do with it. As an economist, one tends to be skeptical – where is the market failure? and also to wonder about opportunity costs – could these funds have greater impact if used in a different way? They are legitimate questions. Can they be answered, yet? There continues to be debate. But there is not doubt that the stories are compelling. For the part of the sector that is well run and sustainable, even profitable, it seems the opportunity cost is quite low.

I have just joined the faculty in the economics department and have some strong interest in microfinance. Please look me up when you return and we can talk about your experience with Grameen and how you might want to add to it, whether personally and for your own goals, or more broadly on campus if that idealism takes root.

Regards,

Shannon Mudd