Micro credit; the solution for Ecuador?Micro credit; the solution Wouter Kakebeeke: Micro credit; the solution for Ecuador?

Wouter Kakebeeke is an studen of International Bussinnes and is a volunteer work in Ecotrackers as editor of the Pedagogical Journal Mirada
Micro credit; the solution for Ecuador?

In 1974 the first micro credit was given to Carlos Moreno in Colombia,
according to The Economist. Nowadays in Ecuador, the micro credit system is
being used as a political weapon to gain votes. But the question is if the
people can handle this system. Wouldn’t it be better to invest in education
first before giving money directly into the hands of the poor? What is going
to happen with the money? The idea is that with micro credit people who
normally can’t get credit from a bank, because they lack collateral or
employment, now can get a small loan without conditions. So with micro
credits the people have very few responsibilities on how to spend the money.
Some can start a successful business. But why not simply buy food or
furniture for your house? This works for one or two months, but after that
they are in the same situation as before but now with more debts. Another
option that works in many countries is to start a small shop to support your
family. But with the number of credits that the politicians want to give,
everyone could have is own store. On top of that, with your own business
come a lot of worries, not having social securities and an inhumane time
table of working every day more than ten hours.
A micro credit program can motivate a cut in the budget of public health and
education. And education is necessary for everyone who wants to have a
successful business. Will this be the solution for this country?