Microfinance: Poverty Reduction through Self-Sufficiency
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Authors
Racey, Anne
Issue Date
2007
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
Micro finance is a revolutionary step towards the alleviation of poverty. Small
loans are given out to a group dubbed the "economically active poor." These finances
help individuals to microenterprises and to become self-sustainable. The resulting
benefits from these loans allow the poor to become empowered and take control of their
lives. Though there are several pitfalls to micro finance, if used properly this approach to
poverty alleviation may ultimately increase GDP in developing countries. Two
approaches to microfinance have resulted since its creation, poverty lending and financial
systems. Each has its advantages and disadvantages, but bringing the two ideas together
could ultimately increase the amount of penetration of micro finance throughout the
world. The main objective of this paper is to help individuals better understand how
microfinance benefits the poor. In addition, it will be shown how microfinance can help
to boost the economies of developing countries relating to growth and inequality.
Description
31 p.
Citation
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License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.