▶ Your Answer :
The reading passage contends that there are
some reasons why it is not worthy to implement microloan systems. On the other
hand, the lecturer brings up several points that contradict this argument.
First of all, microloan systems can provide
not only loans but also some lessons on basic business skills. For example,
through microloan systems, poor people can learn how to maximize profits and
minimize the business failures. This casts doubt on the reading which states
that although poor people can borrow money, they are likely to fail because
they lack the experience and knowledge about business.
Secondly, according to the lecturer,
microloan systems do not require much administration fees because borrowers can
be administered as a group. That is, if some people live
in the same area, they can be handled just all together in the process. Through such packaged
process, they can save a lot of costs. This refutes the reading passage's
assertion that microloan systems create much administration fees.
The final point made by the lecturer is
that the government's spending is not affected by microloan systems. This is
due to the fact that microloan systems are provided by non-governmental
entities, such as non-profit organisms. This counters the writer's claim that
the government cannot invest much money in other social programs because of the
budget involved for microloans.
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