The flaw in the International Finance Corporation’s theory (How World Bank unit’s goals were sabotaged by capture of SA grants, May 29) that financial services —interest and fee-bearing loans — are essential for economic development in low-income communities should be pretty obvious to anybody, let alone the geniuses at the World Bank. Loans to establish income-producing businesses, good; loans to purchase durables, acceptable; loans to purchase semidurables, acceptable under certain circumstances; and loans for consumption to get the borrower through the month, very bad. Needless to say, with respect to its "clients" receiving social grants, Net1 preyed on the last category. Sydney KayeCape Town
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