Lending money to the poor

http://fordhampoliticalreview.org

In the old testament of the bible, Exodus 22:25 states that "If you lend money to one of my people among you who is needy, do not treat it like a business deal, charge no interest (NIV, Biblica)." The bible clearly says that you should not abuse the weakness of the poor financially. The poor is deprived from the basic needs they should have in order to sustain their living. They are the unlucky ones, who struggle everyday to survive the lack of food, clothing and shelter. The only resort they  have in order to improve their lives, is to find jobs with higher salary (in which they are not capable of). If not, they will avail of the high interest loans from informal lenders, in order to start a business of their own.

Micro-financing was the answer in providing access to credit for the poor. Mohammad Yunus of Bangladesh develop a method of lending for women in their village. He created a model on how they could improve their lives through lending and teach them to be liable to their obligations with friendly terms of payment that they could manage. Indeed, when we have our business, we should not overpower the weakness of the poor. We should complement with their available skills and give them the proper education to succeed in their endeavors. Truly, its hard to separate business from charity, but we need to balance these things for the betterment of humanity.

The International Monetary System

The amplified unpredictability of exchange rates is one of the foremost economic developments of the past 40 years. Policies for forecasting and responding to exchange rate fluctuations are still sprouting. Although impulsive exchange rates increase risk, they also create profit opportunities for firms and investors.

The international monetary system is the erection within which foreign exchange rates are dogged,international trade and capital flows are lodged, and the balance-of-payments regulations are made. All of the mechanisms, bodies, and arrangements that bond together the world’s currency, money markets, securities, real estate, and commodity markets are also incorporated within that term. 

The history of the world’s international monetary system is outlined by the following:

• The Gold Standard 1880–1914
• The Interwar Period 1918–1939
• The Gold Exchange Standard 1944–1970
• The Transition Years 1971–1973
• Floating Exchange Rates Since 1973

Today, all exchange rate systems must compact with the tradeoff between guidelines and preference (upright), as well as between collaboration and liberation (parallel). The pre WWI Gold Standard requisite observance to rules and allowed independence. The Bretton Woods agreement (and to a certain extent the EMS) also required adherence to rules in addition to cooperation. The present system is pigeonholed by no rules, with varying notches of collaboration. Many believe that a new international monetary system could prosper only if it combined cooperation among nations with individual preference to pursue domestic social, economic, and financial goals.

*For my students in International Economics, please leave a comment  regarding any questions about our lesson. 

*Click this link to download our lecture reference: International Monetary System.

Basic Economics Course for Non-Economist

The participants from NEDA-CARAGA Region with the speakers
during the closing ceremony last Dec. 13, 2013.

The National Economic Development Authority (NEDA) – CARAGA Region has partnered with the School of Applied Economics (SAEc) in its Professional Training Program for planners and policy makers through the Basic Economic Course last December 11-13, 2013 at the Goat2geder Hotel and Restaurant, Butuan City, Agusan del Norte. Thirty Four (34) participants attended, which is composed of technical and administrative staff of the agency.

Empowering leaders to help communities

Meeting with barangay officials

The School of Applied Economics (SAEc) has launched its Barangay Skills Enhancement and Development Program (BSEDP) in the first quarter of 2014, a five-year community extension program participated by SAEc faculty and students enrolled in Project Planning and Management. The program aims to assist barangay leaders in crafting their development plans and initiate projects that will help uplift the lives of their constituents. As of December 2014, we have assisted a total of seven (7) barangays in Davao City, namely: Bago Oshiro, Manuel Guianga, Daliaon Plantation, Sto. Niño, Tacunan, Los Amigos and Biao Joaquin.

Improving the data management in the barangays

Dr. Edgardo D. Cruz delivering his message to the
barangay participants last October 22, 2012. 

The barangay is considered to be the local government unit closest to the people in terms of access and proximity, its role in local service delivery cannot be undermined. Barangay leaders are key players in national development for they have highly significant roles in shaping the destiny of a community, as well as the city as a whole.

The barangay needs to incorporate in their development plan the activities that will improve the delivery of their services to their constituents. One important component in their service delivery is the proper management of their data and reports, in which, most of the barangay leaders and staff don’t have enough knowledge and skills in improving this endeavor.

To augment the lacking skills of barangay leaders and staff in data management, the School of Applied Economics (SAEc) has implemented its extension programs to the different barangays in Davao City.