[GA - In Queue] Repeal: "Microcredit and Microgrants"

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Repeal: "Microcredit and Microgrants"
Category: Repeal | GA#94
Proposed by: Refuge Isle | Onsite Topic​
General Assembly Resolution #94 “Microcredit and Microgrants” (Category: Free Trade; Strength: Mild) shall be struck out and rendered null and void.

The World Assembly,

Reaffirming that poverty can be eliminated, and the World Assembly's guidance, resources, and good will can provide immeasurable benefit to this cause;

Grows concerned the General Assembly has created an organisation which provides risk-free, yet interest-bearing, loans that the World Assembly does not directly issue, through lenders that the World Assembly does not directly employ;

Wary of this program styling developing economies as profitable markets to private banking under the premise of humanitarian intentions;

Concerned that even ideal candidates for WMF programs may be vulnerable to accepting loans that do not have their best intentions at heart, and may force them to move from loan to loan in order to avoid financial hardship;

Believing that it is necessary to establish protocols for bankruptcy and borrow protection, whereas only protocols for delinquency and lender protection have been mentioned;

Disappointed that the General Assembly could have elected to create a program that issued loans to financially disadvantaged persons directly from the WMF at cost, but instead created one to subsidise private lenders to profit from the already impoverished;

Resolving that the World Assembly will continue its important work to address the needs of the poor without a program which undermines them;

Hereby repeals General Assembly Resolution #94 Microcredit and Microgrants.
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Voting Instructions:
  • Vote For if you want the Delegate to vote For the resolution.
  • Vote Against if you want the Delegate to vote Against the resolution.
  • Vote Abstain if you want the Delegate to abstain from voting on this resolution.
  • Vote Present if you are personally abstaining from this vote.

Detailed opinions with your vote are appreciated and encouraged!
 
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Against
- Programs of this nature are proven, and help those in poverty lift themselves out, by providing much needed start-up money on approved small-business plans. These loans are often in the hundreds of dollars - hence 'microloans'.
- The author of this repeal has wrongly conflated this beneficial program with predatory payday lenders. Apples and oranges.
- The target outlines significant safeguards and WA oversight of lending organizations involved in the program, specifically to prevent this program or the recipients of microloans from being exploited. That some of these lending organizations might be for-profit isn't really an issue, given those safeguards.
- The WA isn't (and really shouldn't be) a lending organization, but, by offering lenders protection (and reimbursement) in cases of non-repayment, this actually makes the loans more likely, assisting more people in need.
The microgranting portion of the target program is solely for distributing grants to those in need, from a pool of donated funds. Repeal would destroy this incredibly helpful aspect of the program, doing more harm than good.
 
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