Can Micro Loans Help Reduce Poverty in Developing Countries?

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Micro Loans in Developing Countries: Can Micro Loans help in Reduce Poverty
The word poverty came from the Anglo-Norman word povert. Poverty is predominantly seen in the developing nations. Poverty is a where people lack their basic capacity to participate effectively in society i.e. Not having enough money to provide food and clothes to their family, not being able to work and earn for themselves. There are many reasons for poverty in developing countries some of them include overpopulation, uneven distribution of resources ,lack of education, environmental degradation, economic trends, demographic shifts, high rate of unemployment, corruption, poor government or governance, prejudice and inequality, civil wars and natural disasters etc,.
Reduction of poverty is the major concern of every developing country and even the developed nations. It can be reduced mainly by
Economic Liberalization:
Economic liberalization is protecting the property rights of the poor and according to the World Bank increasing the property right is one of the key factors in reducing the poverty.
Increasing Capital, Infrastructure and Technology:
Long Term economic growth can be achieved by increasing the human and physical technologies. Human technology is growth in the form of health, this leads to the economic development and in turn the reduction of poverty. Physical technologies is increasing the infrastructure of the cities and providing education to all the people in the society.
Employment and Productivity:
Providing Employment to all the people including the backward section of the society helps them to be financially stable and meet there day to day needs.
Women Empowerment:
Educating the women about their rights and creating employment opp...

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...esia’s Government rural bank, Bank Rakyat Indonesia runned a subsidized credit program called BIMAS encouraged framers and showed the world that a state owned bank can do. The Philippines took an electronic approach and encouraged many institutions including small local banks, NGO’s and specialised microfinance banks. All the methods employed by different countries encouraged local initiatives with social entrepreneurs and social groups

Works Cited

Bateman, M. (n.d.). Microfinance as a development and poverty reduction policy: is it everything it’s cracked up to be?. Retrieved from
AFRICA. (2011, Sep 19). Global Information Network. Retrieved from
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