cats with money pes 2016 gameplay online casino jamul casino caltrans quickmap zeus thunderbolt symbol pictures of different video card slots dyngus day buffalo video slots india market las vegas casinos near pittsburgh malta stardust casino book casino de guest inurl online site capitals casino night pics prestige casino mexicali cerrado best algae eater with goldfish casino win roulette every time casino bad reichenhall cultivo de tomate android games casino southwind kaw casino casino titan login two way street band casino machine a sous astuce mystique casino iowa casino del sol room specials 1360 madeline ln elgin il casino hayward wi casino hours kaya shisha pnx 480 multi ball roulette casino 9529084090 online casino central gesa call 24 number roulette habbo casino bankroll play for real cashing check at walmart sizzling santa quest worlds largest horse online sports gambling casino c4292 la fiesta escenica slots past keno results sunset stastion casino age limit for gambling newmarket race card saturday mega fun casino kamenz yahoo free video poker trainer wicked winnings ii three card poker online free 3d animation maker free no download fifa 14 russian roulette casino saint yrieix la perche horaires train top casino games to play best online blackjack sites for us players age of pirates gameplaypch slots casino ski antuco chicaiza nemacolin casino hours great yarmouth dogs metoksypropanol casino yolande roulette play deuces wild online casino accepting debit card guest facebook login stage 7 siloam springs casino new casino in laurel md emnotweni casino sales sinhaya gossip slots vw jetta club uk casino bingo on the box withdrawal presque isle downs and casino photos siuntion kirkko tulipalo casino jamie casino brother killed manifest winning the lottery casino theatre geneva la revue technique mega casino bonus code 2016 russian roulette rihanna karaoke love play star trek como se baila la salsa casino prof stefan muckleshoot casino fun places to eat in reno tuesday football tips casino jack 2010 r5line tls releasexvid barc0de casino cros de cagnes horaires trains froutakia kouloxerides slots casino classic mobile sky sport darts gilt groupe acquires casino odds of winning casino blackjack russisk roulette video table video gambling machines online casino websites madrid casino development maspeth outlook meeting multiple time slots schedules betting on csgolounge casino games for ipod free online poker no sign up yakyuken special online casino atlantis resort rooms best roulette numbers to play casino times i wanna know mp3 joe casino miravalle clausurado casino tattoo sleeve designs pics rueda de casino romania four winds casino players lounge monte-carlo rolex masters new casino games online chw medical foundation belmont casino casino halifax new years eve 2012 casino gompel casino hong kong irish lotto results 3 draws asura gameplaypch slots irish lottery numbers saturday casino wloclawek wiadomosci 682 shrine ct casino casino nb public equity clams casino rainforest sharebeast wale ekonto mkonto aquarius casino play real slots online casino red online kitties for free free download slot machines meeting slots past grand national winners ruby slots login lake reno resort tavern casino at the greenbrier hp a5500 48g ei switch with 2 interface slots casino date find online casino salernes heures douverture biocap palace station buffet las vegas winning in roulette catherine hopkinson ladbrokes casino casino 85201 7 days to die dukes casino coins watford vs burnley play online slots stacked wilds mega fame casino and slots andalsur gaditana promociones slots chester casino wv all inclusive atlantis vacation cool a buck casino aschaffenburg telefonnummernsuche 81955 hoover ave indio casino casino vulcan comlogin jouer au casino gratuitement sans depot grille games to play on a tablet chris cornell casino lyrics casino table materials casinos in ireland ayr gold cup tips gateway roulette red hot sevens slots free l wallets for women leather with photo slots grand slam of darts results online casino isle of man meta gem slots kasino u beogradu sho ka wah indian casino fifa 15 ronaldo in club casino casino front money accounts sack moyes odds casino heist foiled casino pampulha niemeyer casino barcelona grup peralada wines wormerland cda casino casino money payouts real ocean downs casino pictures of cards qconf slots zone inside avalon casino catalina ifolder ru casino casino games online nj casinos casino blotzheim nouvel an vietnamien demo russian casino casino bomberos coyhaique map newmarket results yesterday darts line up shelbyville casino smoking you want the good girl ute mountain casino powwow newcastle v man utd why is 13 a unlucky number league of ireland premier england v new zealand live score how to win in casino bejeweled slots online how to play the roulette wheel horses racing results uk csgol;ounge bingo games online free to play casino de novelda telefonos 52362 sb2 007 casino casino fraktion zieleniak casino 1234 cake best casino in wisconsin casino della chicco car new online slots latest slots missisippi casino capsunica jocuri cu fructe casino money to burn casino slot sambhaji maharaj mp3 powada casino atlantic city online casino abulense gimnasio total learn blackjack basic strategy toletas slots contact william hill lucky red nd casino code squaxin tribe casino casino cross lanes wv jurmala fenikss casino casino povoa de varzin coeurdalene casino ethylene glycol monoacetate casino rugby league play offs phones with sim card slots casino taoro la orotava isole rules of play your cards right chickasaw riverwind casino thepchaiya un-nooh casino dellaurora pallavicini rospigliosi cup casino or lottery harrington casino big winners maryland live free slot play kids casino night hl slots wins will it snow on christmas day gsn casino free games diego sebastian schwartzman free casino roulette games alidendir aliden casino windcrest studios slots money wheel casino style stuffed clams casino rivers casino senior breakfast choctaw casino kleinwalsertal riezlern kleinwalsertal bonus games website watford v newcastle stream suites with hot tubs play omaha poker alien on flintstones rihanna russian roulette official video vevo enrique lequipe 21 video casino rio carnival buffet price casino boys lord of the rings logo anthony joshua v tyson fury real free money 20 super power hits slots new casino technology odawa casino age to gamble free online game of hearts moto gp malaysia machines a sous gratuites casino 77009 casino com x gilberto e gilmar karaoke version recette roulette cookie much does casino accounting clerk make lion festival slot england netball superleague casino near red bluff ca casino ashley all day lean latest premiership betting odds shofight 20 video slots jackpots casino place des pavillons gaming casino bono turks and caicos casinos funny fruit slot machine casino games you can play at home casino zaidimai internete casino eighmey chevrolet free queen of the nile slots casino online rotativki image roulette something awful casino online avec bonus sans depot online casino net com adameve casino demo slots orval kent foods baxter springs ks casino eye of horua free free slots casino roulette slot yourbestonlinecasino com casino kleinwalsertal geburtstag england v new zealand karen lombardo joliet il casino bookfiend mf doom clams casino shamrock 7s pot of gold palm casino and bar geant casino drive rennes fc lucy online free osage casino sand springs okla sewer lateral inspection san pablo casino asap rocky clams casino demons lyrics when is chester races baca novel fredy s online casino ultra luxe slots ov club and casino hanoimoi singhbhum craton casino santas workshop games switzerland premier league hoyle casino 2012 gameplayrj foxwoods casino bingo free video poker waszkamen cda casino russian roulette online unblocked games fantasy spings casino msii extra code for double down casino bale brothers oysters casino cameo casino online casino hitsein slots casino hafen club night clubs amalia granata vs pachano casino telugu sites for gossip slots 777 casino drive osceola ia hamilton races ladies day play casino games no money clams casino i m god slowed down cricket niagra falls view casino 777 dragon casino opinie pafal 26897 huntwood ave hayward casino ysleta del sur casino book of ra echtgeld online casino heroes of might and magic 2 gameplaypch slots discount codes game ayr racecourse promotional code best bets in a casino james goodliffe ladbrokes casino st croix casino danbury specials lucchese crime family final fantasy crisis core more accessory slots vf casino king of prussia habbo casino layout at atlantis casino en ingles te amo y te extrano derby greyhound stadium 4 slots race track ghostbuster games free casino ice sculptures 3d roulette playtech agenzia di viaggi roulette avellino lucky buzz slots starlight casino pasta recipe casino sanremo numero di telefono poste king george betting 2015 casino gaming commission v jays rochester wa casino casino russlandlied ultimissime sul gossip slots juegos para iphone georgian downs race track and casino furterer okara masque slots casino games money bags casino cattenom cat perm bet calculator jugar juegos gratis de casino zeus carbopol aqua sf 1 casino high limit slots best casinos in puerto the dark knight mega casino en ligne net total rewards program rueda de casino santiago de cuba 2010 gmc aviator casino death google free slots loretta lynch fifa stardust casino demolition video juego gratis de casino book of ra lvd casino water contaminated hoyles casino online free comic books online dc casino royale slots geant casino drive furiani stadium find irish lottery results champions league betting tips 2 methylbutan 1 ol casino chat roulette nasty stuff bonus percentage calculator foto lucu dono kasino idro free slots machine games for fun lake tahoe buffets in casinos jamul casino construction accident october bier fest monte casino 2013 ford card casino credit denial no poarch band of creek casino russian roulette rihanna lyrics karaoke it will rain casino per bambini online translator bt live football who played andy stone in casino slingo casino pak v4 04 todays irish lottery results mayetta ks casino casino pantip suites casino theater zug manutd vs chelsea dobbelen holland casino double bonus deuces wild hotel room suites with jacuzzi abc casino tempe irish lottery number leading edge slots and slats for twin airplane slot machine for sale casino plombieres casino serial reno bowling center regler casino kortspel online online gambling websites las vegas revenue statistics overval casino ter apel nl lottery results ireland pharaoh treasure slots allegre les fumades casino play american roulette wheel golden nugget casino game casino bonus codes usa players casino sgabellino del records kostka pravidla kasino igre las vegas super bowl spread woodbine casino table scape 6 pcie slots motherboard cpu total rewards app aston villa manager odds casino card dealer picture tottenham vs arsenal score mini cooper giveaway casino witbroodjie eurogrand casino bonus auszahlungsplan russian roulette nedir llc casino gratis spel online casino bonus gambling com monepantel casino europa casino apkpure longeville sur mer casino plant vs zombies free horse racing results saturday plan de lectie congresul de la vienna si sfanta aliante casino casino odds for roulette racing cheltenham today kasino hry do mobilu belle van zuylen slots casino yamaha alles spitze online casino party and play sites www casino rating org grand national horses odds paradise buffet price best graphics card pci express x16 slots hotels in reno california casino villa fortuna arequipa noticias royal caribbean explorer slots how loose elephant bar near hayward casino kerala actress gossip slots play-kitty casino entry line this trackback uri lucky dog casino expansions biggest lottery winner usa triethylhexanoin casino casino 222 online multiple player blackjack sites czystka cda casino mass appeal rhythm roulette mannie fresh lil virginia street reno blackjack online game free play colegio monte grande slots firekeepers casino battle creek cheapest buffet in las vegas caesar casino free slots torso up with slots define: awhile turning stone casino human resources different type of games red card football game maybury casino food deals realms of the haunting gameplaypch slots drive geant casino ajaccio real leprechaun video vente en ligne produits casino worldwinner casino longhorn casino william hill free bet no deposit bet premier league winner online casino new zealand singing in this room playing russian roulette chat roulette how to use new timberwolf slot machines barona casino kasino ace rims 22 3 1 big casino game set casino direction stone turning gold slots blackberry online casino deutschland verbotene jomast developments casino sandown races today 3d casino objects for games maxims casino casino spiele kostenlos spielen blogger casino time joomla template builder super 8 casino slot game russian roulette gun shirt best online casino bonuses for us players 6 nations top try scorers play double exposure blackjack online snow globe slots fun things to do in reno best casino game to win free game deal or no deal wolverine free games video inondation casino de biarritz olympique mitzu din salaj casino games chief keef russian roulette instrumental hulk casino bandol ligne aku jatuh cinta roulette karaoke version bengawan solo cash voucher casino vacatures rotterdam holland casino More on the Book of David (Roodman) | .rupert
FINCA - Building tomorrow together

A Congolese Village Bank in Lumbumbashi

I’m back from a regional meeting of FINCA Africa in Lumbumbashi (say it with me), Democratic Republic of the Congo, during which I was able to meet and interview about a dozen clients. Stay tuned for a posting of this, hopefully next week.

In the meantime, I want to return to my critique of David Roodman’s “Due Diligence”, and thank him for his response which you may find on David Roodman’s Open Blog on Microfinance Wid all due respect, as Tony Soprano would say, I remain unconvinced of David’s conclusion that the impact on global poverty of my 40 year career in microfinance has been zero. It is as if I had never lived! Now, I was of course foolhardy to try to engage David — a econometric Goliath – on his own terrain. I recall the precise moment, as a Master’s Degree candidate at the U of Wisconsin, when I realized the statistical life was not for me. It was Euler’s Theorum that did me in. I canvassed the campus in vain for someone who could explain to me, in plain English, what was meant by “For homogenous functions there is a definite relationship between the values of the function and the values of its partial derivatives.” Cool! But, like, can you use that to launch a rocket? So I guess at this point the only way I will get my Doctorate is if some university bestows an Honorary Degree on me. (Any takers? No?) But not to beat a Hypothetical Horse, I think David, in his faith in the power of numbers, has strayed too far from the path of Common Sense. Example: If, as David concludes, there is value to be found in the creation of an industry that has corrrected — for many millions of people — the “market failure” of financial systems in Developing Countries, is it logical to then conclude that the impact on global poverty of this gargantuan investment has been zero?
Are we to believe that joining millions of people who earn their living each day in the informal sector, and who previously had no access to credit or savings services, and now do, are not materially better of as a result of it? I think these two conclusions marry up like drunkards in a Las Vegas wedding. Let’s get them across the border to Mexico for an annulment.

Let me conclude this post with two stories. Now, I know David hates stories, but I venture to say he might like one of them. The first was a woman who has been working with FINCA Congo for the past five years. She initially sold shoes, and then, with the income she earned from that and subsequent FINCA loans, she was able to open a second business selling groceries in her home. When I asked her how she rated FINCA’s service, fishing for an answer as to how efficient, responsive, friendly, etc our staff was, she replied: “FINCA has lifted me out of misery and given me my independence.” Wow, sounds suspiciously like empowerment. David would say “No causality!” Rupert would say “Hey,listen to the woman! Maybe she’s not making it up!”

The second story comes from a village bank I met with. I asked the group of women which service they valued most, access to loans or our savings accounts. Again, their answer surprised me: “Savings,” they said in chorus. Why? “Because it is our money.”

Over to you, David.

Tags
Comments

There are 10 comments on “More on the Book of David (Roodman)”:

  • milford bateman on May 4th, 2012 at 9:59 pm said:

    Mr Schofield

    I think its not just econometrics you seem to have problems grasping, but basic economics and logic too.

    By your impeccable logic, if I go to Caesars Palace in Las Vegas and I bump into a couple of jackpot winners – say, poor people who used their scarce funds to get try to hit it big just once in order to escape a life of poverty – then do I find that these success stories are critically important, and do I then make the leap to conclude that gambling must then be having a positive impact on poverty? Of course not! For other obvious reasons (not least the huge profits made in the typical casino), and even though we find some individual success stories, we know for sure that the NET impact of gambling on poverty is always negative.

    Other than to convince those, like yourself, who desperately want to be convinced that microcredit has had a positive impact on the local economy all these years, pointing to a handful of success stories proves absolutely nothing. You can’t just fixate on a few success stories and ignore all the neutrals and the failures, and so also the crucial opportunity costs (what society could have done differently with the microcredit funds). You really do need to look at the NET impact of microcredit at the community level to see if it is having a positive, neutral or negative impact. David is fundamentally correct to claim that the evidence shows that microcredit has historically had no net impact whatsoever on poverty. Better just get over it.



  • milford bateman on May 4th, 2012 at 9:59 pm said:

    Mr Schofield

    I think its not just econometrics you seem to have problems grasping, but basic economics and logic too.

    By your impeccable logic, if I go to Caesars Palace in Las Vegas and I bump into a couple of jackpot winners – say, poor people who used their scarce funds to get try to hit it big just once in order to escape a life of poverty – then do I find that these success stories are critically important, and do I then make the leap to conclude that gambling must then be having a positive impact on poverty? Of course not! For other obvious reasons (not least the huge profits made in the typical casino), and even though we find some individual success stories, we know for sure that the NET impact of gambling on poverty is always negative.

    Other than to convince those, like yourself, who desperately want to be convinced that microcredit has had a positive impact on the local economy all these years, pointing to a handful of success stories proves absolutely nothing. You can’t just fixate on a few success stories and ignore all the neutrals and the failures, and so also the crucial opportunity costs (what society could have done differently with the microcredit funds). You really do need to look at the NET impact of microcredit at the community level to see if it is having a positive, neutral or negative impact. David is fundamentally correct to claim that the evidence shows that microcredit has historically had no net impact whatsoever on poverty. Better just get over it.



  • rupertscofield on May 5th, 2012 at 3:49 pm said:

    Ah, Milford, I was hoping to flush you out at some point. And glad to hear that, instead of comparing microfinance to slinging heroin, it’s now gambling. We’re making progress! But, sorry, you will never convince me that over 150 poor families around the world with microloans are acting against their best interests, and that we pioneers of the movement were victims of mass delusion (or deception) when we saw people leveraging themselves out of poverty through injections of small amounts of capital into environments where previously only the wealthy had access to it. And, believe it or not, donors were also not stupid or tricked into financing it: they put money into because it worked like no other intervenction at the time. This does not mean it is not also true that in saturated markets, where too many microentrepreneurs compete for too few customers, their margins fall to the point where microcredit is not a good investment for them. And we know the bad things that happen when poor people get over indebted. But to conclude as you do that because some MFIs behave irresponsibly we should dismantle the microfinance industry is like saying we should abolish all banks because Lehman Brothers and others misbehaved and created a global financial crisis. But maybe you would say that? And replace them with credit unions?



  • Paul Rippey on May 5th, 2012 at 8:30 am said:

    I found the last paragraph, when you say you are surprised that poor people say they value savings more than credit, deeply depressing. It’s depressing that a prominent person in financial services for the poor would be “surprised”, in 2012, that poor people overwhelmingly are looking for savings in all its forms, often especially commitment savings of some kind, more than credit.

    However, let me not be self-righteous here. I distributed micro loans for a a long time before I really asked people what they wanted, and many of us are guilty of paying more attention to the microcredit juggernaut than to the people we purport to serve. As part of my penance, I helped start savings-revolution dot org, which I hope you lenders will check out.



  • rupertscofield on May 5th, 2012 at 3:36 pm said:

    Good to hear from you, Paul, and glad to see you are still a playah. What surprised was that, given that Congo is such a relatively undeserved market, and that money lenders charge 34% per month for loans from $14 to $100, that the fact that FINCA DRC charges a tenth of that rate was not the primary reason we were attracting clients. But it’s all good: FINCA’s goal has always been to help our clients grow their own capital while making credit available to those who need it.



  • Paul Rippey on May 6th, 2012 at 6:25 pm said:

    Thanks Rupert. That’s good to hear.

    Savings for all, credit for some!

    Stay well,
    Paul



  • milford bateman on May 6th, 2012 at 9:44 pm said:

    Yes, ‘victims of mass delusion’ pretty much sums it up nicely, as I said just recently using the same title…..

    http://column.global-labour-university.org/2012/01/microfinance-delusion.html

    And because you seem to like misrepresenting my views, I guess it’s because you can’t respond otherwise, let me clarify: dismantling support for the microfinance industry is NOT at all like saying that we need to abolish banks, but like saying that we need to abolish all banks that operate like Lehmann Brothers (which is to say most banks on Wall Street). Can you not see the difference?



  • Rupert Scofield on May 12th, 2012 at 1:14 pm said:

    Oh, so you admit that not all banks should be abolished. So would you go so far as to say that not all microfinance banks should be abolished, but only those who behave like SKS in Andar Pradesh, irresponsibly pouring out loans indiscriminately and over indebting clients in a mad race for profit? And that those MFIs that behave responsibly, provide useful services like savings, loans, remittances and microinsurance at a reasonable cost and taking care to understand their clients capacity to repay should escape Bateman’s indiscriminating, ideological scythe.

    Oh, my. I think I win this round. Surely, you noticed?.



  • Daniel Green on May 14th, 2012 at 11:17 am said:

    Point- Scofield (note the lack of “h” in his name, Mr. Bateman). While Mr. Bateman certainly cites compelling research in his article, I fear that the passion with which he and others slam the industry will result in throwing the proverbial baby out with the bathwater.

    Has the 40-year love affair with microcredit gone too far? Probably (judging by recent events in India etc.). Does this trend negate the power of microfinance? I think not.

    I think your critique, Mr. Bateman, would be more effective if you more clearly distinguish between the failures of microcredit vs microfinance as a whole. Responsible deposit taking institutions and savings-led organizations make up much of microfinance, yet you don’t seem to have a problem with them. Or do you….?

    – DG



  • David Roodman on May 8th, 2012 at 9:05 pm said:

    Back at you, Rupert:
    http://blogs.cgdev.org/open_book/2012/05/ripost-to-rupert.php

    I think in your response to Milford, you got at what is probably your real core argument (against me): if 150 million voluntarily partake, how can the movement to build this industry be bad? I do think that’s an argument worth taking seriously because it’s really about respecting the judgment of 150 million people whose lives I hardly understand. Still there is the problem that credit has a certain addictive character, and that human judgment is fallible. I assume the microcredit industry hasn’t caught up with the tobacco industry in number of customers, if you take my point.

    I’m just trying to say that it’s a serious argument but not for me a case-closer.

    –David



Leave a comment

Required fields are marked *. Your email address will not be published.

Please enter the captcha value in the box below. This will prove that you are a human being and not one of those awful spambots! *

Updates by email
Updates by email
Receive an email every time something new is posted on my blog
Welcome
Welcome
Welcome to my blog, where I invite you to share in my experience fighting global poverty and working with some of the greatest minds in global economic development. Join me in discovering how we can use social enterprise to create a more equitable, just, and prosperous society.
Listen to my podcast: The Social Enterprise Podcast
Get in touch
Get in touch
Email  Twitter  Linkedin  You Tube