1.For many people, there seems to be no escape from poverty; in other words, they are poor, and they have no hope that this will ever change. In addition, they have the social problems of poverty—among them, low social status, violence, poor health, and lack of education.
2. Imagine this situation: a poor woman has an idea for a small business 5 to lift herself and her family out of poverty. She needs a little money to begin this business. She goes to a bank to borrow the money, and the banker interviews her. At this bank, as at most banks, the borrower must meet three necessary conditions: character, capacity, and collateral. That is, if this woman wants to borrow money from the bank, she must show that she (1) is honest (has character), (2) is able to run her business (has capacity), and (3) owns a house, land, or something valuable (has collateral) for the bank to take if she can’t pay back the money. So what happens to the woman? The bank won’t lend her the money because she doesn’t have any collateral. In such a situation, there seems to be no way for the woman to break the cycle 15 of poverty and the problems that are associated with it.