Abusive Microcredit and exploitation of the poor

Microcredit, which was and continues to be promoted as a means of lifting people out of poverty, has had disastrous consequences for poor populations in the Global South. With its abusive and predatory interest rates and terms, it trapped these vulnerable people in debt, forcing them to take out multiple loans to pay off the previous ones and make huge sacrifices to repay them over years and decades. We are aware that women are by far the primary victims of microcredit, and we express our solidarity with their struggles against microcredit in Sri Lanka, as well as in Bangladesh, Pakistan, Nepal, India and all other parts of the world.

We strive for alternative possibilities like subsidies and grants, zero interest loans without discrimination, socially and collectively managed community projects, etc. We call for the renewed development of free, high quality, public services and increases in the funds available for social spending.

We extend our solidarity to all labouring masses caught in the infernal webs of illegitimate debts. We resolve to continue our struggle as long as human beings labour under the burden of the debt system and the financial and microcredit institutions.

Speakers:

Amali Wedagedara, activist and researcher on microcredit, Sri Lanka

Sushovan Dhar, CADTM India, menber ot the WSF international secretariat and of Asia Pacific Social Forum

Farooq Tariq, General Secretary of the Pakistan Kissan Rabita Committe, a network of 26 peasant organizations and a coalition member of the international platform La Via Campesina

Moderator: 

Fernanda Gadea, coordinator of ATTAC Spain