What changes could governments and banks make to become less discrimatory towards the poor?

Essay by KG36High School, 11th grade March 2004

download word file, 3 pages 3.0

In our society today the poor never get a fair chance to prove themselves. Banks call them "bad credit risks" and governments in developing countries do nothing to help them get a chance to succeed in life. Millions of poor people around the world can improve their living standards if they had a chance to prove them selves. I have some ideas that governments and banks can do to become less discriminated towards the poor.

One idea is for governments in developed countries to set up agencies in developing countries that that discriminate against the poor. These agencies would be basically the same as the "Microcredit" system that Muhammad Yumus of Bangladeshi started. This has system, which has many principals, which it operates under to insure that the system operates fairly and treats the poor with respect. Some of the principals includes loans must be paid back within one year, loans must be less then $50 and borrowers are set up in groups of five that if one member of the group defaults on a loan the entire group is punished.

The last principal I like because it creates self-disciple on each member to work hard and not take advantage of the system. This idea of giving the poor small amounts of money to help break out of poverty is a good one because they are being given a chance to succeed in life.

The second idea I have is for banks to change their policy that poor people are always bad credit risk. Sure they might not look like a person who could succeed or the right income for a loan but if given a chance they can prove you wrong. Banks need to realize that we are all human beings and that people shouldn't be denied something just...