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Subsidy and Sustainability
Introduction
The August 20, 2003, Wall Street Journal carried a short article on micro- finance in Latin America (Kaplan 2003). The article starts with the story of Mrs. Esther Simone Garcia, a shopkeeper in rural Mexico. Mrs. Garcia’s $130 loan from Pro Mujer, a leading microlender founded in Bolivia, was enough to improve the range of offerings in Mrs. Garcia’s small grocery store. With the debt repaid and business expanding, the Wall Street Journal reports that Garcia has started raising her ambitions, and even thinks of sending her daughter to college.
“Now, one of the highly praised tools in the global fight against poverty is also proving it can be a viable business,” the article continues, “increasingly drawing investors who seek profits along with the loftier goal of social development.” BancoSol’s 1996 $5 million bond issue in Bolivia and Compartamos’s 2002 $10 million bond issue in Mexico are cited by the Wall Street......
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Title: Subsidy And Sustainability
Approximate Word Count: 1708
Approximate Pages: 7 (250 words per double-spaced page)
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