Who do we most trust: the government or a nonprofit?
For many reasons, I myself would tend to trust a nonprofit before I trust a government. At the same time, I am often provided reasons to accept that when a government entity steps in to assess a nonprofit, I might want to trust that government. As convoluted as that statement may seem, a good example may be my tendency to trust State Attorneys Generals who for some reason I like to believe are above politics and put the best interest of the public first. I also approve of some US Congresspeople who have proven histories of challenging nonprofits that just don't seem nonprofit enough (like some hospitals or colleges).
So where am I going with this track you are likely asking if you are still with me? Well, the Bangladesh government has set-out to investigate the doings of the Grameen Bank. Grameen has served as the pioneer and model for helping really low-wealth people acrue assets.
According to the Wall Street Journal, the Bangladesh government is conducting a probe of Grameen and the microfinance industry. The same is happening in Pakistan. One issue, the amount of interest being charged to borrowers (a suprising to me rate of up to 27%) although I admittedly may not understand the interest rates there.
Anyway, should I and other consumers believe that Grameen has gone awry because the government says something's not right? Grameen has a long history of proving who its loyalties are to -- the people. But, could Grameen indeed have gone awry and wouldn't I welcome the government looking out for the people and helping make corrections?
I'm not so sure.