1,602 karma · joined January 2, 2018
I fed ChatGPT a bunch of dummy savings and loans transactions and then asked it to compile loan tables for named borrowers.
It worked and I was impressed. For me, this felt like a move from programming to curation. I give the AI the data, and it organizes it for me and outputs it according to what I ask for.
I appreciate there is higher order programming, but for simple needs like the one I described, maybe this is not the beginning of the end for programming, but at least the end of the beginning.
If anyone knows more about this tradition, I would be keen to know.
Having worked in the sector, albeit not with Shell, my guess is that the board were advised that offsets increasingly carry massive legal jeopardy, including director’s liability.
This is an interesting summary of the problem:
https://www.clientearth.org/media/nq4jnyww/ce-offsets-legal-...
https://en.m.wikipedia.org/wiki/Alternate_wetting_and_drying
If not, the practice is already a requirement of the Sustainable Rice Platform Standard: https://winrock.org/wp-content/uploads/2021/01/SRP-Standard-...
The principal constraint to sustainable rice production in many contexts is cost of land leveling, which context dependent, costs about USD 1,000/ha. The status quo assumption is that farmers should finance this cost through debt, which they are reluctant to do because whilst the costs of change are real, the benefits are speculative: yield may go up, water use may go down, but you might just as well be wiped out by the market.
So the big challenge here is social: how to derisk the investment for the farmer, and who pays.
There are many which do not play this game - apparently not Kiva - and seem truer to their charitable purposes. Some will say: does it logically matter - if higher salaries win improved achievement of charitable purpose? The answer then is why not structure as a business rather than not-for-profit?
Edit [additional point]: microfinance is a high cost, high risk business. Organisations at the sharp end of loan management need to charge interest rates which cover costs, including defaults, currency hedging etc. I find that fair enough.
What irks me is a management hiding behind a not-for-profit status to enrich themselves without taking risk.
Seeking input from experts: how long until that day? Or is this that tool…?
1. Investors invest for speculative returns, not predictability or risk minimisation.
2. Free enterprise is possible within existing political-economic frameworks.
Question for the community: how does one navigate such uncertainty?
This is central to the author’s defence of the social importance of banks. And if only it were true, banks really don’t finance small businesses in a meaningful way anymore. At least not in the UK.
I’ve no connection to the company.