Microfinance: a solution to global poverty
Abstract
Poverty is defined as scarcity and lack. Poverty has global impact with almost half of the
worlds population living on less than US $1 per day.
Poverty fuels instability and an insecure society. With the World becoming an ever
smaller community, instability and insecurity in one nation affects the stability and cost of
doing business in another. Global society benefits from peace and economic stability.
More than half a billion people in poverty could create jobs and increase their incomes if
they had access to financial services.
Microfinance is the provision of financial services - loans, savings and insurance, to
those excluded from the formal financial system. Typically the loans are small (as little
as US $25), for short terms (3 months) and unsecured. They benefit the poor by
enabling them to increase incomes, smooth income streams, reduce vulnerability to
economic shocks and improve quality of life. The provision of Microfinance is a hand up
not a hand out.
Microfinance benefits community's by enabling the development of micro-enterprise,
creating more jobs, increasing the supply of goods and services to the poor, improving
access to education and health and improving stability.
This report provides a concise summary of Microfinance in theory and practice and is
aimed at motivating an inspiring others to get involved and make a difference.... [Show full abstract]
Keywords
global poverty; microfinanceFields of Research
1502 Banking, Finance and Investment; 140202 Economic Development and Growth; 160401 Economic GeographyDate
2005-11Type
OtherCollections
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