Why invest in economic develpment versus aid?
It’s pretty simple, the emerging evidence shows that aid does not work. Aid is not sustainable. Aid doesn’t build any individual or village level capabilities. Investment is the key to helping people onto the first rung of the economic development ladder. Our participants invest in people who have great ideas, but no capital to start sustainable micro-enterprise. With just a little capital, our funding allows individuals to start businesses – they take it from there. 97% repayment rates pretty much sum up the success of micro-lending.
It’s pretty simple, the emerging evidence shows that aid does not work. Aid is not sustainable. Aid doesn’t build any individual or village level capabilities. Capacity-building nvestments are the key to helping people onto the first rung of the economic development ladder. Our participants invest in people who have great ideas, but no capital to start sustainable micro-enterprise. With just a little capital, our funding allows individuals to start businesses – they take it from there. 97% repayment rates within the microfinance industry pretty much sum up the success of micro-lending. CGL has a 100% repayment rate on our loans in the developing world (investing in the poor is good business).
