Lima, at 9 million people one of the 10 largest cities in the Americas, is economically stratified but not stagnant. Here are snapshots of progress in the city that was once the capital of Spain's New World empire | Marvin Olasky
Associated Press/Photo by Esteban Felix
PERU—How to describe Lima? If my early-1970s Marxism still possessed me, I would describe homeless residents living and defecating on trash heaps. Families living in flimsy homes on hillsides. Then I would juxtapose those details with snapshots of rich Lima residents paragliding above a Malibu-like, oceanfront mall or shopping at the mall's 14 jewelry and 18 gift stores. But two other comparisons suggest a different perspective.
First comparison: Cuba and Peru. Five years ago in Havana, the phrase I heard frequently was "uno mundo mejor," a better world. That was the official goal of the Castro regime, but many Cubans used it sarcastically: Five decades of Communism had stopped economic progress and turned the island into a prison. In Lima recently, though, the phrase I often heard was "poco a poco," economic improvement little by little.
Loans to grow on
A look at microloan groups | Marvin Olasky
Microloan groups can create another roadmap to economic advance. I visited in Cuzco, the two-mile-high former citadel of the Incas, a microloan group called Kallarisunchis, which means "to begin." It has 250 participants who receive four-month loans ranging from $100 to $1,000, with an interest rate of 2.5 percent per month. (Loan sharks charged 18 percent to 20 percent per month.) Current members recommend and take responsibility for new members.
Members at one regular meeting encouraged each other and talked about their businesses: They drive taxis, fix cars, make filing cabinets, sell paintings, operate hostels, knit and sell clothes, make jewelry, and market health products and cosmetics. They like running their own businesses, maintaining flexible hours, and not being reliant on bosses. Crucially, they hold each other accountable: As microloan groups have become popular around the world, some have lost the personal touch, and that's trouble.
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