Microlending is going through some tough times as it's been the subject of harsh criticism from politicians and activists. Grameen Bank, the institution that won its founder Mohammed Yunus a Nobel Prize, is even under investigation for alleged tax evasion regarding US$100 million. In other areas like India, microlending institutions have been said to be trapping borrowers into a cycle of debt as instead of "lifting themselves" out of poverty, they just keep borrowing constantly. This is really unfortunate as it seemed like a good concept. Yet, I feel that the problems described in this article about microlending aren't problems with microlending itself but problems with human faults such as greed and over-ambitiousness. In effect, these faults are also those that have plagued regular banking or financial institutions elsewhere- trapping borrowers into a cycle of poverty seems familiar.

Paul Krugman sees a bleak immediate future for the U.S. economy-wise in this piece. As he said, blips happen even in the worst economic times, because when economic activity dropped as deeply as it did last year, then a little jump or improvement is not surprising. The question is how sustainable it can be, and my feeling is it's not. It's funny when everytime there is some slight rise, or a decline that is not as deep as expected in the U.S., such as with unemployment figures or holiday shopping, there are industry pundits and media reports that highlight optimism, as if they expect things will return to normal very soon.

As the world struggles to overcome this ongoing economic crisis, China continues to get a lot of attention, or I might say hype, especially over its possible ability to help lead the world economy out of this crisis. It is no exaggeration to say that some have already anointed China as the next superpower, ready to pass the U.S. and take up a leading position in the world equivalent to its historical and cultural standing. Yet as always, it's good to be cautious about China, as these articles from Time magazine show. One asks if China can really "save the world?" while the other reminds people that nothing can be taken for granted about the future.

The ongoing global economic crisis is notable in that developed nations such as the U.S. and big powers like China have been seriously affected. Africa itself is also being affected, especially from the reduction or complete elimination of funding from the developed world. This article from Time magazine (July 13 edition) examines this situation. As a World Bank economist says in the article, people in the West may suffer from the recession, but for people in Africa, it can literally be a matter of life and death. On the other hand, this lack of aid money may be a good thing, for people like Dambisa Moyo, author of Dead Aid, who argues vociferously about the detrimental effect of aid on African governments.
This other piece, also from Time`s July 13 edition, looks at Liberia and shows some good things happening, a far cry from its wartorn 90s. Yet the familiar problems of violence, albeit crimes and not conflicts or all-out war, and corruption are afflicting this nation. But overall, Liberia has come a long way from its recent past and its president, Ms. Ellen Johnson Sirleaf, seems like the real deal, so maybe the country will be able to keep on progressing.

An interesting look at Rwanda's ambitious attempts to modernise, build its economy and try to be the Singapore of Africa. The government sure has a lot of high-powered U.S. corporate friends, as well as Rick Warren, author of The Purpose-Driven Life. Nevertheless it still is a very poor country, which only makes its disciplined, (relatively) tidy and rather corruption-free society even more admirable. One only hopes that this isn't accomplished with too much authoritarian measures in place.