I found much to agree with in both posts and it's nice to see the work of the Grameen Bank being recognized and understood.
The creative power of individuals is never unleashed from top-down investment. What you get from that is theft and corruption. It is released by bottom-up economic development, which is why Grameen Banks (bottom up) do more for developing countries than the World Bank (top down).Of course this logic isn't limited to developing countries. One of the principal issues in local economic development over the last twenty years has been whether we should concentrate on attracting inward investment or helping local initiatives access the finance and expertise they need to survive and grow.
My answer has always been that we need both but, like the micro-credit movement and the World Bank, they have different roles to play.
I admire the practical work Grameen has been doing in Bangladesh but no amount of micro-credit is going to provide developing countries with the infrastructure they need to support the growth of new and existing businesses.
That infrastructure isn't just road and rail links providing access to raw materials and markets, it's schools and hospitals as well as ports and power plants. And as Simon says, it includes a legal system that recognizes and guarantees traditional property rights.
Putting that infrastructure in place requires a lot of top down thinking and foreign investment.
