Just three decades ago, billions of people around the world were stuck in a trap. Faced with low incomes on the one hand and exploitative loan sharks the other, they could neither save for the future nor purchase the capital required to generate a living. This changed with the pioneering work of Mohammad Yunus in Bangladesh, and with the establishment of the Grameen Bank in 1983, microfinance was born.
The Global Financial Crisis highlighted the shortcomings of the financial sector and its exposure to risk. Fuelled by the failures of financial regulators, governments and central banks, many lessons can be learnt from the GFC.
This article first appeared in Short Supply 2017 – check out the full magazine via the Short Supply tab at the top of this page!