There is still widespread poverty in developing nations despite efforts to liberalize the markets. We no longer see state run companies operating successfully (with the exception of Singapore.)In most countries, capital markets offer the best opportunity for the masses to participate in the wealth creation and distribution process.
In Oct November 2008, a banker friend said that the recession offered the best chance of redistributing wealth and he said 'a lot of money is going to change hands.' After almost three years, I don't see my poor friends any richer and my rich friends any poorer. The cliche, "the rich get richer' is ever true today.
But there are compelling reasons as why the world needs micro investment platforms and micro investment policies in place.
1. Investments no matter how small or micro, helps in stabilizing the communities who are on the brink of life.
2. Small investments by millions do add up into substantial chunks for them to operate their ventures and businesses in their communities.
3. A proper platform for investments by micro investors would keep them away from persons who exploit them.
4. The returns from these investments can be further invested to have a positive feedback cycle.
An acquaintance warned me that micro investments are anti-thesis. We should be giving them money rather than teach them how to invest - cos that's what they need most. I am sure he'll be surprised that those with little money may appreciate however little appreciations of their portfolios the most!
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