Microcredit and Poverty Alleviation Essay

Microcredit and Poverty Alleviation Essay

Length: 2262 words (6.5 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

Microcredit is a financial innovation that is considered to have originated with the Grameen Bank in Bangladesh, and Muhammad Yunus is its founder. This Bank offers collateral free loan to rural poor women. Women are afforded the opportunity of education and access to health care, reduced unemployment, so that their families and communities prosper. The future of the Microcredit is very bright now because it plays an important role for the development of poor families. This system is being introduced in both developing and developed countries of the world. The relationship between Muhammad Yunus’s Grameen bank and women’s lives is important because he helps poor women to be independent and economically support their family. Because of microcredit women are free to earn a living and start small businesses; they become drivers of economic growth.
Muhammad Yunus is an economist from Chittagong University and was born in 1940 in Chittagong, Bangladesh. He was the third of nine children of his parents and educated in Chittagong. He was awarded a Fulbright scholarship and received his Ph.D. from Vanderbilt University, Nashville, Tennessee. In 1972 he became head of the Economics Department at Chittagong University. He is the founder and managing director of the Grameen Bank. In 1997, Professor Yunus led the world’s first Micro Credit Summit in Washington, DC. Muhammad Yunus’s project has grown to serve a total of seven million families in Bangladesh with loans, totaling six billion dollars. There are over 250 institutions in100 countries that operate off Grameen micro-credit principles (Biography). Yunus developed his revolutionary micro-credit system with the belief that it would be a cost effective and scalable weapon to fight pover...

... middle of paper ...

...Alex. “The Haldar Para.” Small loans, big dreams: how Nobel peace prize winner Muhammad Yunus and microfinance are changing the world. Hoboken, N.J: John Wiley & Sons, 2008: 189- 212. Print.
Gangemi, Jeffrey. “Microcredit Missionary.” Businessweek. 26 December 2005: 20-20. Business Source premier. Web. 25 January 2011.
Khan, Farhana. “Opinion: Microcredit Changes Lives.” The Tech Publish Online Edition 9 September 9 2008: Vol. 128 Issue 37, 1 February 2011.
Yunus, Muhammad. “The Stool Makers of Jobra Village.” Banker to the poor: micro-lending and the battle against world poverty. New York, NY: Public Affairs, 2003: 43-58. Print.
Yunus, Muhammad. “One Cup of Yogurt at a Time.” Creating a world without poverty: social business and the future of capitalism. New York, NY: PublicAffairs, 2007: 149-162. Print.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Microfinance Banks Investments And Poverty Alleviation

- Microfinance Banks Investments and Poverty Alleviation in Nigeria I.G. Okafor Department of Banking and Finance, Caritas University, Enugu, Nigeria. E-mail: igfnmann@yahoo.com Abstract The industrialized economies of the world have been associated with heavy investments. Investments create jobs, increase income per capita, reduce poverty level, increase standard of living and increase domestic product (GDP). It is for these that the Central Bank of Nigeria (CBN) in 2005, established the Microfinance Policy Framework....   [tags: Investment, Poverty, Capital accumulation]

Term Papers
1629 words (4.7 pages)

Microcredit Essay

- Microcredit can be defined as small loans, or microloans, for people around the world in extreme poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007)....   [tags: Economy, Loans, Microloans]

Term Papers
1743 words (5 pages)

Essay on Impact of Microfinance Upon Developing Countries

- Question: “Microfinance appears to offer a ‘win-win’ solution, where both financial institutions and poor clients profit” (Morduch, 1999). Critically assess this statement with reference to the empirical literature. Introduction Microfinance has achieved growing significance as a tool for poverty alleviation with the year 2005 marked as the United Nations International Year of Microcredit. Over the years, the world has witnessed a remarkable growth in the number of institutions offering microfinance and the number of clients reached....   [tags: financial institutions, microcredit]

Term Papers
2324 words (6.6 pages)

The Microcredit Foundation of India and Poverty in India Essay

- The Microcredit Foundation of India is a non- profit organization, and effective tool for alleviating poverty. The Microcredit Foundation has its base located in southern rural India. Microcredit works with just about everyone who needs their help; however their focus is women. Microcredit presents the women of rural communities with the opportunity to start a business. The services of micro credit are dedicated to creating a better stable economy, opportunities in the establishment of medium sized enterprises, and co-operative development....   [tags: nonprofits, Microcredit Foundation of India, pover]

Term Papers
1171 words (3.3 pages)

Essay on Microcredit: A Way to Self-Reliance

- Microcredit has inspired countless imaginations on the possibilities of drastically reducing global poverty. This paper will attempt to deconstruct the norm, to displace popular discourse only pertaining to a few examples of the theory and practice of microcredit. “The sign of a successfully implanted norm is its silence” (Carter 2007:152). It is no longer questioned or scrutinized. The notion of the ‘Global North’ and the ‘Global South’ is both normalized and problematic. It dictates the global agenda, and pools the resources of power in some parts of the world and not others....   [tags: global poverty, microcredit, small loans]

Term Papers
1460 words (4.2 pages)

Essay on Challenges for Microfinance Organizations Serving the Poor

- WHAT CHALLENGES DO MICROFINANCE ORGANISATIONS FACE IN THEIR ATTEMPTS TO SERVE THE POOR. ASSESS THE POTENTIAL BENEFITS AND DRAWBACKS OF MICROFINANCE IN IMPROVING LIVING STANDARDS. Over the last 15 years microfinance institutions (MFIs) have rapidly expanded. The number of poor families with a microloan has grown from 7.6 million in 1997 to 137.5 million in 2010. Microcredit has generated significant confidence for fast poverty alleviation; creating a multiplier effect leading to the eradication of poverty and hunger, universal primary education, the promotion of gender equality and empowerment of women in developing nations....   [tags: poverty, lending, women]

Term Papers
1515 words (4.3 pages)

The Alleviation of Poverty Essay

- ... The funding for these policies is attained through the different taxes existing within (Roux, 2008) a nation. In South Africa we are informed of these policies through the budget speeches that are given yearly as well of the taxes that will be used to gather the funds for the implementation of the policies. It has also been described as “growth orientated” in the (Mollentze, 2014). The manner in which the fiscal policy works, since it is attached to government spending is through the multiplier effect, therefor the components of the multiplier will also need to be considered when the effectiveness of the fiscal policy is considered as was shown in the (Charl Jooste, 2012)....   [tags: monetary policy, fiscal policy]

Term Papers
1602 words (4.6 pages)

Alleviation of Poverty Cannot Occur without Development Essay

- ‘In the world of development, if one mixes the poor and the non-poor [sic] in a program, the non-poor will always drive out the poor, and the less poor will drive out the more poor, unless protective measures are instituted right at the beginning. In such cases, the non-poor reap the benefits of all that is done in the name of the poor’ (Yunus, 1999:42). This quote goes to show how misunderstood the term ‘development’ is in the West, as the root causes of poverty are never fully addressed beforehand in order to assess what type of development is necessary for a country in the Third World....   [tags: world poverty, global poverty]

Term Papers
1824 words (5.2 pages)

Essay on Microcredit: The Solution to Global Poverty

- Over 1.4 billion people live on less than $1.25 per day (Singer 7). In impoverished nations, the life expectancy is below fifty, compared to the average of seventy-eight years in rich nations. The mortality rate of children is twenty times greater in “least developed” countries than in developed nations. Nearly 18 million people die every year from avoidable, poverty-related causes (UNICEF). On the other side of the spectrum, there were more than 1,100 billionaires in the world in 2007 (Singer 9)....   [tags: world poverty, microfinance]

Term Papers
1913 words (5.5 pages)

Informal Economy and Poverty Alleviation Essay

- Subject area Any sovereign state is to some extent concerned about the existence of informality in its economy. Although the subject of informal economy is broadly presented in interdisciplinary research, it remains understudied, especially from an entrepreneurship perspective in developing context (Castro, Khavul, & Bruton, 2014). At the same time the problem of poverty alleviation is particularly up-to-date in the light of millennium development goals, first of which is eradication of extreme poverty and hunger....   [tags: social capital, informal economy]

Term Papers
1424 words (4.1 pages)