Microfinance

IMPACT OF MICROFINANCE ON POVERTY, INCOME INEQUALITY AND ENTREPRENEURSHIP TERM PAPER SUBMITTED TO DR. KIMBERLY LEONARD-KEMPF IN PARTIAL FULFILLMENT FOR RESEARCH DESIGN I train OF ECONOMIC, POLITICAL AND policy SCIENCES POLITICAL ECONOMY AND PUBLIC POLICY BY SHEHERYAR BANURI RICHARDSON, TEXAS NOVEMBER 2006 Last Updated: November 27th 2006 1 I. Introduction The bourne Microfinance pertains to the impart of highly little amounts of capital to forgetful entrepreneurs in order to work a mechanism to alleviate meagreness by providing the miserable and destitute with resources that ar available to the wealthy, albeit at a littler scale. This particular form of alter has existed in the world for kinda some time, though formalized by Mohammed Yunus in Bangladesh during the 1970s. Yunus win the Nobel Peace prize in 2006 for his efforts in combating poverty and providing resources to the poor via the Grameen Bank and the microfinance model. Historically, microfina nce has existed among the poor in different shapes and forms. The most putting green example cited is that of a merry-go-round club, wherein people pool their nest egg into a trustworthy fund e genuinely month, and then are randomly picked (without replacement) to receive the entire fund every year.

This system required, of course, that distributively member of the club belong to a tightly crinkle social circle in order to be rely and thus, allowed to participate. This pooled savings method of financing has been quite favourite in various cultures across the globe. Furthermore, there have existed easy len ding institutions extending credit to the po! or and vulnerable, though on very fixed and often extraordinary terms. Today, microfinance institutions (of which the Grameen Bank is the pioneer, but many an(prenominal) other institutions have also joined the market) allow for both the pooled savings model as well as the itsy-bitsy lending using favorable terms. The concept is simple, loan teeny-weeny bullion to the poor (usually under 10 USD) for a small fixed...If you compulsion to get a full essay, order it on our website: OrderCustomPaper.com

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