Banks making big profits from tiny loans, By Neil MacFarquhar, April 13, 2010, New York Times: “In recent years, the idea of giving small loans to poor people became the darling of the development world, hailed as the long elusive formula to propel even the most destitute into better lives. Actors like Natalie Portman and Michael Douglas lent their boldface names to the cause. Muhammad Yunus, the economist who pioneered the practice by lending small amounts to basket weavers in Bangladesh, won a Nobel Peace Prize for it in 2006. The idea even got its very own United Nations year in 2005. But the phenomenon has grown so popular that some of its biggest proponents are now wringing their hands over the direction it has taken. Drawn by the prospect of hefty profits from even the smallest of loans, a raft of banks and financial institutions now dominate the field, with some charging interest rates of 100 percent or more…”
Day: April 15, 2010
Aging Out of Foster Care – New York City
City is urged to evaluate foster care, By Julis Bosman, April 14, 2010, New York Times: “At 21, a young person in foster care in New York is officially out of the child welfare system. Bill de Blasio, the city’s public advocate, said Wednesday that the government’s involvement should not stop there. In legislation introduced before the City Council, Mr. de Blasio said the city should collect data on former foster children to understand what happens to them once they are out of the city’s care. ‘Too often, young adults who grow up in the city’s foster care system slip through the cracks,’ Mr. de Blasio said. ‘Until we can evaluate what happens to the hundreds of young people who leave foster care each year, we will not know if we are putting them on the path to success or creating a generation of disconnected youth stuck in poverty…'”
Rent Subsidies and Work Requirements – New York City
Plan would require homeless to work to qualify for rent subsidies, By Julie Bosman, April 13, 2010, New York Times: “The Bloomberg administration is planning to require more homeless families to get jobs in order to qualify for rent subsidies, city officials said Tuesday. For the last three years, the city had provided certain homeless families with vouchers good for one or two years of free or steeply discounted rent. Since the program began, more than 18,000 families, and some single adults, have received the so-called Advantage vouchers, more than 7,500 of them last year. Most of those families qualified for the vouchers because they had already found work, and as a result were eligible to pay only $50 toward their rent each month for up to two years. But families who had become the subject of child welfare investigations were granted an even-more-generous voucher, good for up to two years of free rent – because of their vulnerability. For the last three years, the city had provided certain homeless families with vouchers good for one or two years of free or steeply discounted rent. Since the program began, more than 18,000 families, and some single adults, have received the so-called Advantage vouchers, more than 7,500 of them last year…”