The Nobel Peace Prize has gone to the economist who designed the microloan program. In general there seemed to be two types of programs. One program is a simple exploitation of market inefficiencies by having enough capital to provide lower interest loans. Of course the key part of the program is the lesson that the other organizations have never learned. The lesson is that governments are not the way to help people. A look at the macroloans of the World Bank show this all too well. The other lesson is that the best way to help the poor is not to give them charity. Charity doesn’t provide that incentive to work especially when earning that extra dollar keeps you from getting the money. Also it is important to provide an effective penalty for non-payment. The only penalty effective against poor and starving farmers is that failure to repay the loan will mean that they can never borrow again. Any charity would never have the belief that people have no right to their service and thus are completely ineffective at loans.