You really have to love the Italians. They definitely know how to get their message across, especially with the European Union. Italians can be proud of the fact that their government’s National Institute of Statistics received the Nobel Prize in Economics for, “Proudly taking the lead in fulfilling the European Union mandate for each country to increase the official size of its national economy by including revenues from prostitution, illegal drug sales, smuggling, and all other unlawful financial transactions between willing participants.”
This highlights how easy it is for a country to increase its Gross Domestic Product. The numbers become skewed for there’s no established definitive format in coming up with a value unless that number is correlated to the overall growth of the European Union. The illusion is based on the fact that these countries are able to meet their government’s fiscal objectives without actually receiving the revenue.
Most of the revenue ends up in offshore bank accounts that now lend legitimacy towards corruption. The illusion has become a permanent fixture towards corruption that allowed the Nobel Prize to associate itself with its own shadow. It’s interesting to note India’s role in the shadowy world of Nobel Prizes, especially Muhammad Yunus’ Nobel laureate recognition in 2006.
Muhammad Yunus received the Nobel Prize for his theories involving microfinance: a concept involving lending small loans to women in impoverished areas who lack collateral, credit history, and steady employment. His theory was deemed as a solution to alleviate poverty and a chance for women to increase their power of rights in areas they were normally neglected. His theory was unrelenting and had more of an impact on India’s economy with the transition of these banks going from nonprofit organizations to independents.
Yunus’ theory carried the cause of prostitution on a larger scale than anyone in the field of economics could’ve ever imagined. These so-called bank representatives go out into the fields of small towns and make sure to solicit females that have no hope of ever repaying a loan. Many of these towns don’t even have the infrastructure to sustain entrepreneurship opportunity for individuals to grow and feed their families.
The exponential growth of these microfinance institutions extended their tentacles by tapping into insurance fostered by prostitution to ensure collateral always got paid. Over the past year across the microfinance industry, gross loans have increased by 84% while client base has increased 44%. These are awfully impressive statistics for “small” microfinance institutions who claim that women’s rights and poverty alleviation are their primary goals of operation and sustainable growth.
The problem with India is that the paradigm is ever-shifting. Unlike Italy and the UK, prostitution is legal in India. The real economic pimps are the microfinance companies who use legal prostitution as insurance. The only way impoverished Indian women can absolve their debt is by committing suicide. This is how much India cares about their women. Organizations have simply found another way to commodify women further as they recognize their profitability. Simply put, these banks represent a social order where they prioritize a disadvantaged economic class.
The cost of servicing the poor is high because of the interconnectivity of financial rewards being paid out to loan officers. Even the asset sales of the poor inadvertently creates unsustainable consumption and spending; this further deepens poverty and spurs profiteering of Western nations making huge capital gains from microfinance in developing countries. Microfinance is just a new financial tool in limiting education and innovation, and increasing yield by Western nations with low interest rates to make money.
It’s a harbinger that’s not based on merit or a Nobel Prize. Microfinance only accomplished its own soul with perpetuating poverty all over the world including Africa where subjugation is the rule of law. These types of banks fuel corruption as a pyramid enabling a never-ending cycle of females toward the path of prostitution, misery, and death. This is what the Nobel Prize has come to stand for.