Sep 9, 2006 10:45:00 AM cite

Alvaro Restrepo: This is again a question for economists. The only thing I can say from my point of view is that we have to start speaking of not only humanitarian economy, but humanistic economy. Values of mankind have to be taken into consideration in the process of developing strategies for developing the countries that need to develop. The question if it's micro-finance or macro-finance, I think I cannot answer. The only thing I claim for is for a humanistic vision of this kind of decisions.

by Alvaro Restrepo

Sep 9, 2006 10:45:00 AM cite

Ana Lucy Bengochea:

by Ana Lucy Bengochea

Sep 9, 2006 10:45:00 AM cite

Angaangaq Lyberth: Development of developing countries. We have to give the people the power and the ability to do their own development. What is best for them there, wherever it is, is not necessarily the best for others in another place. So we have to learn to do that. We cannot just say that development is good for everybody. Yes, it is good for everybody, but each region has its own special needs. And we have to learn to recognize it. If you don’t we will pour in money and put money upon money and we will always lose some. And yes, micro is much better than macro. Micro is that individuals are given moments in being able to do something about themselves. So without being dependent on a big corporation or big banks who just make their money on your failure rather than on your success. So when we base the development on the failure it will fail. But when we start to develop development on the success of each individual then it will succeed. I pray that my answer made sense to you.

by Angaangaq Lyberth

Sep 9, 2006 10:45:00 AM cite

Anthony Arnove: Actually, I would want to reframe the question, because the question on micro-finance or macro-finance assumes that the framework of the question is capitalists' development. It's a question of how countries in the third world are going to develop along a model which is based on the development of the current, existing enhanced capitalist countries. And really, it's based on the idea that the problems that exist in the third world; problems with poverty; problems of dispossession, political, social conflicts, insecurity, economic and global security, grow from problems having to do with the mismanagement of the economy often described as state interference in the otherwise smooth operation of the economic system of capitalism. And really, what we see is something far more complex that the normal operations of the system create in equality. The normal operations of the system depend on the underdevelopment of certain areas of the economy and the world. And even in those countries which are experiencing development on the terms that are considered standard under capitalist globalization, you find the social problems growing and inequality growing; poverty growing; not the opposite, which of course the defenders, the apologists of the system will claim. So micro-finance/macro-financing operate within that framework. And really, if we want true human development, human development that benefits everyone, the kinds of advancements that we would like to see in terms of meeting basic human needs for people; providing more meaningful lives; providing more freedom; more control over their lives, we're going to have to go beyond the question of the limits of development that can occur in the current economic system.

by Anthony Arnove

Sep 9, 2006 10:45:00 AM cite

Anuradha Koirala: In developing countries, development is dissimilar to the developed countries, and micro-finance is better for them, because one country has to grow versus taking money from others, and that is what needed. So, micro finance is best possible step of development. Because if macro-finance is, I assume placed quickly, and that will also could make some destructions. So micro-finance is more suitable for the developing countries.

by Anuradha Koirala

Sep 9, 2006 10:45:00 AM cite

Anuradha Mittal: First of all, I would say that we have to get over this idea that “one size fits all”; that’s not how it works. So, it’s not about whether it is micro-finance or macro-finance but really the ability of developing countries to be able to decide for themselves, for the people in those countries to have the freedom instead of the pressure from outside to decide what is going to be the best for themselves. Definitely, in terms of micro-financing schemes, where the communities have power over the projects and the whole democratic process, that is the way to go. But in terms of solutions itself, we have to leave the answers to Asia, Africa, Latin America and let the people decide for themselves instead of “one answer fits all.” We have seen with solutions that have been offered of Third World countries grow cash crops for export and that is going to be the solution out of poverty, which has basically converted Third World countries into this exotic food baskets while the people, the citizens are starving. So given that, I would say, yes, in terms of rather than this large mega scale development projects which are being sent to Third World countries, which basically displace people, work against nature, work against people, have to be dismantled. We have to talk about building power from the bottom up, where people at the grass roots level can decide for themselves what works, what solutions work for them: is it a cooperative they want to start or whatever it is, but basically something which is rooted in local economy. So, I think the answer comes down, therefore, to local economies which are sustainable, which can flourish. We need to support them. They are not about “big is beautiful” but really cutting back to the principle of “small is beautiful.”

by Anuradha Mittal

Sep 9, 2006 10:45:00 AM cite

Ashok Gangadean: I find this question has two parts. And before we look at micro-finance or macro-finance, there is a prior question in terms of how should the development of developing countries takes place. Again it focuses on what do we mean by development. Often development is measured by economic standards and ergonomic standards rather than human standards of spirituality and becoming whole flourishing human beings. If we look at development in terms of the standards of awakened spiritual culture, then that kind of development is a different form of development than money, market, ergonomic forms of development. So, I think before we go to the question of micro-finance or macro-finance, we need to be clear on what is the consciousness that is the basis of development itself. And, in terms of my prior responses, to the extent that we are moving from egocentric, ego-based culture to a whole systems integral compassion and culture based upon care and mutual respect and sacredness of life, the question of development will be handled differently. And, one of the forces in that context that would be a great adjuster of the impoverished people from the money point of view. A micro-finance bringing finances out to the people, especially the women in villages would be - has known to be a powerful transformative force of empowerment of individuals and reverse those old trends of the dominance of an ego-based culture. So, I think macro-finance also, looking at the dynamics of money in a large scale in terms of governments and shifting funding both at the macro and the micro level together in terms of the top-down and the bottom-up, both of those strategies will be required for the mass transformation from an ego-based culture to a culture based upon economic social justice.

by Ashok Gangadean

Sep 9, 2006 10:45:00 AM cite

Audrey Kitagawa: I think [next two words unclear] with respect to this question, we really have to see what is going on with respect to that particular country. I personally favor having the local economies prosper and supporting local economies so that you have communities that are self-sustain, that address the needs of the people, bring in the voice of the people, bring in the contributions of the people, and see how these local communities can be self-sustain. So to the extent that you have micro-finance projects that can assist the local people in that regard, I think that that is a very positive way to go. Understand, though, that micro-finance as well as macro-finance both have experienced problems. With respect to macro- finance, I think for the development of the country as a whole, we need to look at the institutions that actually do these financing projects because the financial institutions that have created this whole aspect of financing with huge debt loads that ultimately saddle the country in a way that does not allow the country to get out of debt and actually relegates the countries into positions where they're not able to get ahead needs to be examined very carefully and reformed as well.

by Audrey Kitagawa

Sep 9, 2006 10:45:00 AM cite

Benjamin Fahrer: First [minute], we must respect the cultures and customs of these countries that we are saying that we need to develop. Then, we have to ask what is appropriate for these cultures and customs? What is the appropriate technology? What is the appropriate development? That can benefit their culture that can be mutually beneficial in the relationship that then evolves from this contribution. We must look at it as the way to contribute to their culture, not forcing our western ways. Small localized self-reliant systems, the micro-financing developing the system that is localized, that is self-reliant that has the choice of how they want to contribute to the whole? And what they need from the whole? Macro-finance sometimes gets lost and doesn’t ask the question of what is appropriate? Nor does it sometime have the respect of this local indigenous native ways. He's tapping into the indigenous wisdom.

by Benjamin Fahrer

Sep 9, 2006 10:45:00 AM cite

Benson Venegas: Poverty comes when each of the basic systems for a society as a whole is not working properly, creating an overall crisis. That doesn't allow anything to work, and bring back the system together. So micro and macro finance is necessary. At the micro level, we need [hunt out] with support, and not end up with charity. So society need to involve in this process of change, and we need to pour the local economies from a top-down approach, to poor poverty, poor people to get out of their situation. At the macro level, we need government that will establish good governance basis that will allow society to really grown in a more positive way. A government that can really insure that public and private investment is reaching all over the country in a more fair way. So, also, for that we need fair tax systems. We need to create a conditions where we're reducing the gap between the poor and the rich, we really have the benefits goes to a large number of the population who have investment in public and health systems. And also the involvement of the private sector is vital, in a way that they could be more responsible, socially and environmentally, to be able to create a society that is more integrated in a holistic way, and that are prepared to take the challenges in the actual situation of globalization.

by Benson Venegas

Mar 10, 2007 10:09:43 PM cite

how would world conflict be affected by education in developing or 3rd world nations? opinion? remarks? how to solve lack of education in these worlds. Geordi

by geordi

Sep 9, 2006 10:45:00 AM cite

Beverly Schwartz: I love micro-finance because it empowers people to help themselves and to sustain themselves. So that the whole difference between giving money to a country versus giving money in small groups to people is a very different concept. And I think there is less room for corruption. There is less room for waste when you do a micro-finance system for the people. And for the people to work on things that mean the most to them, that they feel good about doing, that they feel capable about doing, that they do together in groups because, of course, micro-finance for the most part, depends on groups of people working together and agreeing to pay back their loans. And hopefully at the end of the loan period these people have businesses that are self sustaining. So I think that the spreading of micro-finance has much promise for the world and has much promise for developing countries. It has much promise for every country. And I think for that system, and if you want to think of that as an economic system, I think I appreciate that more than micro -- the macro. But of course, macro-finance has its place as well. But I think macro-finance has to be watched more carefully, has to be controlled more carefully, and has to be thought of in a much more careful and deliberate way. So probably a bit of both. But I do think there is much promise in a system of micro-finance and proliferating that system, grow that system, to scale that system, to replicate that system. I think that has much promise and we need to look at that as solutions to many developing country needs.

by Beverly Schwartz

Sep 9, 2006 10:45:00 AM cite

Bianca Jagger: Answertext will be available soon.

by Bianca Jagger

Sep 9, 2006 10:45:00 AM cite

Bill Joy: Well, I’m a strong supporter of the notion of microfinance. I had the great pleasure of meeting a number of years ago Jacque Attali who’s starting a organization called PlaNet Finance which was trying to help microfinance institutions get started. And we’ve seen some incredible success stories about microfinance. But I think quite frankly that while it can help some and the early stages of development we also need is to create great institutions of higher education, of research and that can educate the smartest people in every culture to be innovators so that they can create new wealth and compete on the world stage because to bring economies all the way from a state of limited development to a really competitive position on the world stage requires the kind of miracles we’ve seen in South Korea and other places where you see truly innovative scale ability to manufacture, to produce amazing new things. I think many different countries can achieve similar success but it will take not only the beginnings of moving out of poverty through microfinance but also scale institutions that can educate and train people to be truly world class. And there are smart people everywhere. We can do this but it takes large scale effort to really move to the forefront.

by Bill Joy

Sep 9, 2006 10:45:00 AM cite

Bora Cosic: Once again I’m not expert in economics. Probably is micro financing better idea, hence it’s about helping small economic groups then other way around. Macro financing activates in me an antipathy of some huge, tense up, over dimensional systems. I immediately think about [Deacon] or [Daicon], and about global larceny.

by Bora Cosic

Sep 9, 2006 10:45:00 AM cite

Brian J. Weller: My God, what a tough question. Let’s see, well I think it’s going to be a combination of macro- and micro-financing. If we go back and look at a little bit of history, the Bretton Woods Institutions, notably the International Monetary Fund (IMF), the World Bank, the World Trade Organization, these should be dismantled and decommissioned. I believe an international insolvency court should be established to determine the proper disposition of outstanding debts that are owed to the IMF. I would release all the staff from these institutions and I would return all the assets that remain over to the United Nations. This will open the way to put in place a macro-international financial system that favors long-term investment over short-term speculation, stability over volatility, and local (i.e. micro) over foreign investment and ownership. So, this is a re-engineering of our financial system and it’s long overdue.

by Brian J. Weller

Sep 9, 2006 10:45:00 AM cite

Catherine David: I think this question is a bit naive. I believe that it is not possible to say if micro- or macrofinance is better. The advantage of microfinance for example depends on the context and on the moment. Sometimes macrofinance is a prelude to make the people more responsable and independant concerning their destiny and it can't be a solution to impose a panacea or a miracle solution upon these people or even to search for such a miracle. It depends on as the case arises. In Asia for example microfinance seems to function but we have to lance several equal projects before we get a definite answer if it also works in other countries like France, for example, the small country where I come from. So we have to ask these questions more precisely and do not have to wait for a miracle, which unfortunately does not exist, I believe.

by Catherine David

Sep 9, 2006 10:45:00 AM cite

China Keitetsi: Looking at my background I don't know the difference of macro and micro, but I have an example. For example, in Rwanda where in villages and poor households, women are given some kind of little money, and then are made to come in groups and get this money and work together, or come up with an idea, for example, farming. They give them money, begin to farm which was very, very successful and that means even women go on making small associations where they put money every month. Then at the end of one month, one woman gets this money. This was a very big help and I liked it because women in Africa, for example, in poor countries are very, very concerned with the well being of their children. And I came to this point where I said the African women are carrying Africa. Without the African women there would be no Africa. And they were very much successful. Monies to send their children in school. But also a micro or macro finance to work, we have to be very, very interested that it works. We have to have our leaders or those who provide it to people to really do it with love, with care, not just to give and leave everything to the people who receive it.

by China Keitetsi

Sep 9, 2006 10:45:00 AM cite

Constantin von Barloewen: For many generations it was believed that only by economic investments on the level of macro-finance it would be possible to succeed in the Third World countries. This was believed by countries and World Bank organisations. The last 10 or 15 years have shown, through the examples of e.g. Mohammed Junus, inventor in Bangladesh, or the Swiss family Schmidtheini, achieving a lot in South America, that micro-finance is very important. The "Guamin" Bank is highly successful nowadays in 50 or 60 states worldwide with the micro-finance, with micro credits which have proven that whole families, that women can be incorporated much stronger in the economy. Nowadays one needs to find a balance between so-called macro-finance of the industrialised nations, the so-called development aid, and the micro-finance and its success. There is not only the "Guamin" Bank, but a lot of other banks or institutions worldwide, showing that those "grass root" politics can be highly successful economically. It is astonishing that now micro-finance is offered e.g. in Switzerland as a possible investment by the big banks. I believe that it is possible to achieve a lot in this field, as the so-called development aid stagnates at about 0.37 %, e.g. in Germany, where the necessary 0.7 % are not reached, as well the Netherlands and the Northern European states cannot reach this. North America´s value is at about 0.1 %, and only Japan has a slightly higher value. That is to say, the macro-finance alone will not be sufficient for the Third World countries, the micro-finance is an important part of it and should be as well in the future, to create a balance.

by Constantin von Barloewen