Monday, 23 October 2017

Possible short term strategy to combat dire poverty

Job creation is a long term challenge. In the short to medium term the following may work:

Give zero interest loans of Rs. 50,000/- per poor family to start a small business (I would start with the homeless who can be seen sleeping on the streets). Alongside, advise them on how to run the business and save money. These loans can be given after a background check and recovered in regular small instalments (of say Rs. 1000/- per month).

It can be insisted that the business be something that adds value to society: fruits & vegetables / juice shops / food / clothes / toys / etc.

The money will be recovered in about four years anyway. Plus many of these businesses may start doing well enough over time to start paying taxes.

I think such a strategy would help in bringing a large number of people out of dire poverty quickly and we need to do that.

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