The heart of finance: Social bonds as a way to improve the world

A NEW type of financing has the potential to improve the lives of some of the world's poorest people

In a bustling mid-sized city in India, a young man grapples with the age-old question of how to earn a living - and improve his station in life.

While he can read and write, office jobs are hard to come by in a town that is too small to boast the presence of multinational companies or big Indian corporates. Working in a restaurant or local markets is a possibility, but that leaves little chance of progression. Launching his own small business requires only modest startup capital, but with a monthly income of just US$150, banks are unwilling to lend to him.