Due to the article ¨Is Microfinance a neoliberal fairytale¨ (Bunting, March, 9^th, 2011), microfinance has gone from being a unique aid reserved for poor people to be a common aid for all kinds of people and organizations. Since its creation has expanded worldwide with incredible speed. In just one decade the microfinance has accumulated large amounts of money. According to responses from the economist of Cambridge Ha-Joon Chang and Microfinance’s critics Milford Bateman, microfinance is a cute fantasy created to produce an impact in the society whit the idea where a poor become rich.  In addition, microcredits make banks self-sustaining by poor people who are working to increase their economy. The high interest that they have to pay for their loans only reflects a capitalism and neoliberal world. Furthermore, microcredit has a limited in terms of technology, skills and financial resources therefore it does not solve all the problems.  I agree with the article in two ways: first, microcredit does not allow the development of poor people and second, microfinance reflects a Neoliberal world.

To begin with microcredit does not allow the development of poor people because microcredit created the idea that poor people with a ¨loans if as little as $30¨ (A Bank for the Down and Out, Hatman, Blass, 2006, para, 2) and working alone can become rich. That idea is completely false in reality ¨is very rarely the result of individual effort. Rather it is a collective endeavor¨ (Is microfinance a neoliberal fairytale, Buting, 2011, para, 4). Poor people have to play the loans with a high interest, to illustrate ¨Without subsidy, interest rates soar to 50% and even higher ¨ (Is microfinance a neoliberal fairytale, Buting, 2011, para, 5), then  all the money they get is using to pay their loans. Moreover, this interest also affects the development of small business, for instance ¨telephone ladies in 1990 made handsome profits but at the end they dropped dramatically ¨ (Is microfinance a neoliberal fairytale, Buting, 2011, para, 7). Poor people cannot created small business in the long run because on one hand interest of loans are so high and on the other hand microfinance can no solve all problems like technology. Microfinance has many locks that do not allow people to evolve by themselves. In the real life a poor cannot be a rich overnight and less with a limited amount of money. The best way to improve the economy is collective work with people who have skills to build business whit solid and self-sustaining bases.