Financial and Monetary Systems

The 34 billion dollar question: Is microfinance the answer to poverty?

A beggar holds a plastic cup as he asks for money in central Madrid, October 10, 2013. Beggars, dog-lovers and fortune-tellers who venture onto Madrid's busy streets may soon find themselves out of pocket as authorities in the city and elsewhere seek creative solutions to their financial problems.The Madrid council laid out plans this week to levy fines of 750 euros ($1,000) for public activities including soliciting for money outside shopping centres, feeding or washing dogs, reading tarot cards and performing acrobatics with a bike. Saddled with huge debts since a property bubble burst in 2008, Spain's autonomous regions and town halls have seen core revenues fall as unemployment holds stubbornly above 25 percent and corporate investments dry up. Many owe millions to service suppliers and staff.  REUTERS/Susana Vera  (SPAIN - Tags: POLITICS BUSINESS SOCIETY POVERTY)

Microfinance has been hailed as the answer to global poverty, however it does little to stop loan sharks. Image: REUTERS/Susana Vera

Frithjof Arp
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