By Henry Flores, director of the communications center in El Salvador
The more I learn about people living in poverty, the more I discover how expensive it is to be poor and how their fragile personal economy forces them to face high costs of living and social prejudice.
We all know that the less you earn the more expensive getting credit becomes. You have to pay more in interest for being a “risk” to the creditor, as earning less makes you a higher risk to default on your loan.
Something similar happens to poor people. Most of them don’t have a steady income, so they aren’t eligible for credit, and since they live off daily earnings, they can only make small payments daily. How do you conduct business in such a fragile economy? How do you make products and services available for people in such economic conditions?