Microfinance in Asia and Africa: Difference between revisions
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'''Microfinance''' is a term for the practice of providing financial services, such as microcredit, microsavings or microinsurance to poor people. By helping them to accumulate usably large sums of money, this expands their choices and reduces the risks they face. As suggested by the name, most transactions involve small amounts of money, | '''Microfinance''' is a term for the practice of providing financial services, such as microcredit, microsavings or microinsurance to poor people. By helping them to accumulate usably large sums of money, this expands their choices and reduces the risks they face. As suggested by the name, most transactions involve small amounts of money, between US$100 and US$600. | ||
A few key principles of Microfinance are: | A few key principles of Microfinance are: | ||
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#* Accurate, standardized performance information is imperative, both financial information (e.g., interest rates, loan repayment, and cost recovery) and social information (e.g., number of clients reached and their poverty level). Donors, investors, banking supervisors, and customers need this information to judge their cost, risk, and return. | #* Accurate, standardized performance information is imperative, both financial information (e.g., interest rates, loan repayment, and cost recovery) and social information (e.g., number of clients reached and their poverty level). Donors, investors, banking supervisors, and customers need this information to judge their cost, risk, and return. | ||
More key principles of microfinance can be found at [http://www.cgap.org/portal/site/CGAP/menuitem.64c03ec40a6d295067808010591010a0/ CGAP] | More key principles of microfinance can be found at [http://www.cgap.org/portal/site/CGAP/menuitem.64c03ec40a6d295067808010591010a0/ CGAP] | ||
'''Bibliography''' | |||
"Key Principles of MicroFinance" CGAP. 14 Dec 2007 <http://www.cgap.org/portal/site/CGAP/menuitem.64c03ec40a6d295067808010591010a0/>. | |||
Written by Harris Ayuk-Takor | |||
[[User:Ayuktakh|Ayuktakh]] 13:02, 17 November 2007 (EST) | [[User:Ayuktakh|Ayuktakh]] 13:02, 17 November 2007 (EST) | ||
[http://select.nytimes.com/2007/03/27/opinion/27kristof.html?_r=1&oref=slogin|Kiva Video] | |||
==History of Microfinance== | ==History of Microfinance== | ||
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==The Mechanics of Microfinance== | ==The Mechanics of Microfinance== | ||
[[Why | [[Why Microfinance works?]] | ||
=Bangladesh= | =Bangladesh= | ||
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<p align="left">[[Image:Mbekimugabe cartoon.jpg]]</p> | <p align="left">[[Image:Mbekimugabe cartoon.jpg]]</p> | ||
'''General Economic Situation in Zimbabwe''' | |||
Due to: bad economic poolicies + social reforms, this has led to the Zimbabwean economy being in horrible shape. Zimbabwe has the highest inflation rate in the world which means that there's hardly any foreign investment and therefore low GDP. Western powers have asked neighboring African countries such as South Africa, to use diplomatic measures and personal ties to convince Mugabe to change his policies. The picture above shows Mbeki(South African President) doing a poor job aka kissing up to Mugabe aka using "quiet diplomacy" to ask Mugabe to change. Obviously it has not worked. | |||
In Zimbabwe, the Official CPI (measures the average price of consumer goods and services) suggests that inflation is in excess of 35,000% and the budget deficit is 13.9 trillion dollars. Domestic debt has increased by 54% and the currency rate is now trading at 3 million to 4 million Zim dollars to 1 US dollar. Since the Money Supply is at over 17,000% people are forced to carrry big amounts of money in backpacks. | |||
'''References''' | |||
"This is Zimbabwe." Sokwanele. 14 Decemeber 2007. <http://www.sokwanele.com/thisiszimbabwe/page/2/>. | |||
"Zimbabwe." Wikipedia. 14 December 2007. <http://en.wikipedia.org/wiki/Zimbabwe#Economy>. | |||
[[User:Ayuktakh|Ayuktakh]] 13:02, 17 November 2007 (EST) | |||
=The Impact of Microfinance in Zimbabwe= | =The Impact of Microfinance in Zimbabwe= | ||
[[ | [[Zambuko Trust]] | ||
=Social Effects of Microfinance in Zimbabwe= | |||
[[HIV/AIDS and microfinance]] | |||
=The Future of Microfinance= | =The Future of Microfinance= | ||
[[The Future of Microfinance]] | [[The Future of Microfinance]] | ||
Latest revision as of 13:03, 20 December 2007
Microfinance is a term for the practice of providing financial services, such as microcredit, microsavings or microinsurance to poor people. By helping them to accumulate usably large sums of money, this expands their choices and reduces the risks they face. As suggested by the name, most transactions involve small amounts of money, between US$100 and US$600.
A few key principles of Microfinance are:
- The poor need a variety of financial services, not just loans.
- Just like everyone else, poor people need a wide range of financial services that are convenient, flexible, and reasonably priced. Depending on their circumstances, poor people need not only credit, but also savings, cash transfers, and insurance.
- Microfinance is a powerful instrument against poverty.
- Access to sustainable financial services enables the poor to increase incomes, build assets, and reduce their vulnerability to external shocks. Microfinance allows poor households to move from everyday survival to planning for the future, investing in better nutrition, improved living conditions, and children’s health and education.
- Microfinance works best when it measures—and discloses—its performance.
- Accurate, standardized performance information is imperative, both financial information (e.g., interest rates, loan repayment, and cost recovery) and social information (e.g., number of clients reached and their poverty level). Donors, investors, banking supervisors, and customers need this information to judge their cost, risk, and return.
More key principles of microfinance can be found at CGAP
Bibliography
"Key Principles of MicroFinance" CGAP. 14 Dec 2007 <http://www.cgap.org/portal/site/CGAP/menuitem.64c03ec40a6d295067808010591010a0/>.
Written by Harris Ayuk-Takor
Ayuktakh 13:02, 17 November 2007 (EST)
History of Microfinance
The Mechanics of Microfinance
Bangladesh
Social and Cultural Effects of Microfinance
Zimbabwe
General Economic Situation in Zimbabwe
Due to: bad economic poolicies + social reforms, this has led to the Zimbabwean economy being in horrible shape. Zimbabwe has the highest inflation rate in the world which means that there's hardly any foreign investment and therefore low GDP. Western powers have asked neighboring African countries such as South Africa, to use diplomatic measures and personal ties to convince Mugabe to change his policies. The picture above shows Mbeki(South African President) doing a poor job aka kissing up to Mugabe aka using "quiet diplomacy" to ask Mugabe to change. Obviously it has not worked.
In Zimbabwe, the Official CPI (measures the average price of consumer goods and services) suggests that inflation is in excess of 35,000% and the budget deficit is 13.9 trillion dollars. Domestic debt has increased by 54% and the currency rate is now trading at 3 million to 4 million Zim dollars to 1 US dollar. Since the Money Supply is at over 17,000% people are forced to carrry big amounts of money in backpacks.
References
"This is Zimbabwe." Sokwanele. 14 Decemeber 2007. <http://www.sokwanele.com/thisiszimbabwe/page/2/>.
"Zimbabwe." Wikipedia. 14 December 2007. <http://en.wikipedia.org/wiki/Zimbabwe#Economy>.
Ayuktakh 13:02, 17 November 2007 (EST)
