Pros and Cons of Microfinance

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All across the world high poverty levels in certain areas is extremely common especially in overpopulated, less developed regions. It was not until rather recently that the idea of poverty and helping those less fortunate became a socially accepted topic for those living in developed regions. “The turn of the century as been marked by the emergence of a remarkable global conscience: an awareness of world poverty and the articulation of the will to end poverty” (Roy, 6). This newly founded mindfulness of poverty in the world has led to the need for actions, and in order to deal with poverty and under development the idea of microfinance has been created. India has experienced microfinance in both good and bad ways, and I want to use this idea of constructive and undesirable outcomes inside of microfinance in order to show how microfinance can be a saving grace or a mirage to some micro entrepreneurs. I have decided to look at microfinance within India in relations with poverty, development, and women. I want to show the positive, and also some negative, affects that microfinance has had within areas of the country of India in terms of development, and I want to show how different mentalities regarding how microfinance and microloans are viewed can differ and either cause issues or spur accomplishment.
Before looking into how microfinance has affected areas within the country of Indian I want to break down what I believe microfinance to be, and then I would like to show how different views and application of the idea of microfinance could be used. I feel that microfinance is a form of loaning that is directed at the poorest people including women, and these loans initially had a main purpose of breaking poverty in a way. “Private ...

... middle of paper ...

...the ability to access capital whilst normally under previous conditions these were not able to get loans from banks due to lack of social, economic, and financial status.

Works Cited

Biswas, Soutik. "India's Micro-finance Suicide Epidemic." BBC News. BBC, 16 Dec. 2010. Web. 21 Nov. 2013.

"MICROFINANCE IN INDIA: A CRISIS AT THE BOTTOM OF THE PYRAMID." Legatum.org. N.p., May 2011. Web. 20 Nov. 2013.

Parker, James. "Empowering Women Through Microfinance in India." The Diplomat. N.p., 13 Mar. 2013. Web. 21 Nov. 2013.

Richman, Jen. "IndUS Business Journal." IndUS Business Journal. N.p., 08 June 2010. Web. 22 Nov. 2013.

Roy, Ananya. Poverty Capital: Microfinance and the Making of Development. New York: Routledge, 2010. Print.

Unnikrishnan, Dinesh. "Microfinance Crisis Leads to Loss of 35,000 Jobs." Http://www.livemint.com/. N.p., 21 Oct. 2013. Web. 22 Nov. 2013.

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