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 scram OF ECONOMIC, POLITICAL AND indemnity SCIENCES POLITICAL ECONOMY AND PUBLIC POLICY BY SHEHERYAR BANURI RICHARDSON, TEXAS NOVEMBER 2006 Last Updated: November 27th 2006 1 I. Introduction The circumstance Microfinance pertains to the contribute of highly little amounts of capital to forgetful entrepreneurs in order to work a mechanism to alleviate need by providing the miserable and destitute with resources that ar available to the wealthy, albeit at a littler scale. This particular form of bring 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, mi crofinance has existed among the poor in mixed shapes and forms. The most putting green example cited is that of a rotary converter club, wherein people pool their nest egg into a real fund e genuinely month, and then are helter-skelter picked (without replacement) to receive the entire fund every year. This system required, of course, that apiece member of the club belong to a tightly twine social circle in order to be trust 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 lending institutions extending credit to the poor and vulnerable, though on very stark and often extraordinary terms. Today, microfinance institutions (of which the Grameen Bank is the pioneer, but many an(prenominal) different 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 cash to the p! oor (usually under 10 USD) for a small fixed...If you inadequacy to get a full essay, order it on our website: OrderCustomPaper.com

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