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Widespread poverty
According to the World Bank, 2.7 billion people live on less than two dollars a day. This extreme poverty affects mostly women, according to the UN. Lack of access to economic and financial resources is among the many causes of poverty. In many developing countries, the poor have virtually no access to credit from financial institutions because they have nothing they can offer as collateral. Faced with this situation, they traditionally turn to such resources as family and friends to raise funds. Once these sources are depleted, the only choice remaining is for moneylenders to lend them enough to ensure minimal economic activity at an inflated rate of interest. A large part of the small income generated goes to reimbursing the loan. The little money that remains barely feeds the family. So it is impossible for these families to save, increase their economic activity or invest in their children's education. For many families, this becomes a vicious cycle.
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