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Microlending a Microsuccess?

Microlending, as you may know, is the practice of giving very small loans to poor people in developing countries so they can, in theory, start...


Microlending, as you may know, is the practice of giving very small loans to poor people in developing countries so they can, in theory, start businesses and bootstrap themselves out of poverty for good. The idea that a tiny, temporary financial boost can launch people into entrepreneurial self-sufficiency is an attractive one and microlending has received a lot of attention: Muhammad Yunus won the Nobel Prize for his Grameen Bank in 2005 and Kiva, a microlending nonprofit and GOOD favorite, has seen remarkable growth.But, because the practice is new, there haven't been many objective assessments of how well microlending works. Now we're starting to get them, and it's sobering news:...two new research papers suggest that microcredit is not nearly the powerful tool it has been made out to be. The papers, by leading development economists affiliated with MIT's Jameel Poverty Action Lab, have not yet been published, but they are already being called the most thorough, careful studies yet done on the topic. What they find is that, by most measures, microcredit does not offer a way out of poverty. It helps a few of the more entrepreneurial poor to start up businesses, and at the margins it may boost the profits of existing microenterprises, but that doesn't translate into gains for the borrowers, as measured by indicators like income, spending, health, or education. In fact, most microcredit clients actually spend their borrowed money not on a business, but on household expenses, on paying off other debts or on a relatively big-ticket item like a TV or a daughter's wedding.There are two points to make here. First, this is mostly a case of microlending falling short of insanely high expectations. Microlending may not turn the slums of Dharavi into a Randian paradise, but it isn't doing any harm. In fact, it's working really well in the sense that lots of people are taking-and repaying-the loans. Microfinance is providing temporary money for people who can't get it otherwise. That's important.Second, people who want to help eliminate poverty needn't be scared or discouraged by reports like this-they'll make our efforts stronger. Getting data back is a great way of figuring out how to adjust what you're doing for maximum impact. In that spirit, how might we improve microlending so that it does help people achieve longer-term gains?
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Last Friday, millions of people in 150 countries across the globe took to the streets to urge world leaders to enact dramatic solutions to combat climate change.

The Climate Strike was inspired, in part, by Greta Thunberg, a 16-year-old girl from Sweden who has captured worldwide attention for her tireless work to hold lawmakers responsible for the climate crisis.

The strike gave people across the planet the opportunity to make their voices heard before the U.N. General Assembly Climate Summit in New York City on Monday.

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The Planet
Julian Meehan

Young leaders from around the world are gathering at the United Nations Headquarters in New York Saturday to address arguably the most urgent issue of our time. The Youth Climate Summit comes on the heels of an international strike spearheaded by Greta Thunberg, the 16-year-old climate activist from Sweden, who arrived in New York via emissions-free sailboat earlier this month.

Translated from Swedish, "berg" means "mountain," so it may feel fated that a young woman with Viking blood in her veins and summit in her name would be at the helm. But let's go out on a limb and presume Thunberg, in keeping with most activists, would chafe at the notion of pre-ordained "destiny," and rightly so. Destiny is passive — it happens to you. It's also egomaniacal. Change, on the other hand, is active; you have to fight. And it is humble. "We need to get angry and understand what is at stake," Thunberg declared. "And then we need to transform that anger into action."

This new generation of activists' most pernicious enemy is denial. The people in charge — complacent politicians and corporation heads who grossly benefit from maintaining the status quo — are buffered from real-life consequences of climate change. But millions of people don't share that privilege. For them, climate change isn't an abstract concept, but a daily state of emergency, whether it comes in the form of "prolonged drought in sub-Saharan Africa…devastating tropical storms sweeping across Southeast Asia, the Caribbean and the Pacific…[or] heatwaves and wildfires," as Amnesty International reportsare all too real problems people are facing on a regular basis.

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Climate Action Tracker

In 2016, 196 countries signed the Paris Agreement, pledging to combat climate change by taking action to curb the increase in global temperatures. The Paris Agreement requires countries to report on their emissions and what steps they're taking to implement those plans. Now that the countries are coming together again for the U.N. Climate Action Summit in New York City, it's worth taking a look at what kind of progress they've made.

The Climate Action Trackerkeeps tabs on what each country is doing to limit warming, and if they're meeting their self-set goals. Countries are graded based on whether or not their actions would help limit warming to 1.5 degrees C.

According to a recent article from National Geographic, The Gambia, Morocco, and India are at the head of the class. "Even though carbon emissions in The Gambia, Morocco, and India are expected to rise, they'll fall short of exceeding the 1.5-degree Celsius limit," the article reads. Saudi Arabia, Russia and the United States, on the other hand, get a big fat F. "Projected emissions in Saudi Arabia, Russia, and the United States are far greater than what it would take to limit warming to 1.5 degrees Celsius."

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The Planet

September 20th marks the beginning of a pivotal push for the future of our planet. The Global Climate Strike will set the stage for the United Nations Climate Action Summit, where more than 60 nations are expected to build upon their commitment to 2015's Paris Agreement for combating climate change.

Millions of people are expected to take part in an estimated 4,000 events across 130 countries.

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The Planet
Ottawa Humane Society / Flickr

The Trump Administration won't be remembered for being kind to animals.

In 2018, it launched a new effort to reinstate cruel hunting practices in Alaska that had been outlawed under Obama. Hunters will be able to shoot hibernating bear cubs, murder wolf and coyote cubs while in their dens, and use dogs to hunt black bears.

Efforts to end animal cruelty by the USDA have been curtailed as well. In 2016, under the Obama Administration, the USDA issued 4,944 animal welfare citations, in two years the numbers dropped to just 1,716.

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Science