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Notes and Reflections on Books and Media

by Hannah Leitheiser

Broken Kneecaps Department

#loans

The Challenge of World Poverty MIT Course 14.73

Esther Duflo, and Abhijit Banerjee

2011

Link

2019-08-21

"AUDIENCE: I was a little curious about why the banks never work directly with these people? Is it like a liability thing?

PROFESSOR: Right. So there's an example of that where Citibank, in India, decided that, why wouldn't they use these guys. So they tried to use the kind of local thugs to repossess their car loans. But once it got found out, like they ran into big trouble. And they had to stop that operation....it turns out that it's not legal to kill people who don't reimburse your loan." - Esther Duflo, and Abhijit Banerjee, The Challenge of World Poverty MIT Course 14.73 (2011)