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Is Microfinance an Effective Strategy to Reach the Millennium Development Goals?
... To end this gender discrimination microfinance has been recognised as a transforming tool (Chant, 2014). Previously microfinance has been understood as a microcredit tool but with the emergence of modern-day microfinance, it became a banking and empowerment institution by providing micro-savings, micro-insurance, training to the poor who are unable to provide any collateral and are unbanked (Ledgerwood, 1998;Littlefield et al., 2003). ...
... In Sub-Saharan Africa, microfinance is among the major player to reduce poverty and encouraging them in socio-economic development (Van Rooyen et al., 2012). Long before microfinance has seen as a significant player in the upliftment of poor people and enhanced their socio-economic status, microfinance helps them to improve income sources and household expenditure and thus helps to come out from uncertain economic and financial shocks (Ledgerwood, 1998;Littlefield et al., 2003;Robinson, 2001). The role of microfinance in Bangladesh sets an example of poverty reduction, household expenditure, stability to food and non-food items. ...
... Microfinance has been widely accepted as a method of alleviating poverty and improving social and economic welfare. It diversifies the household income of the poor, smoothens the expenditure, and act as a cushion during economic disasters and financial uncertainties (Ledgerwood, 1998;Littlefield et al., 2003;Robinson, 2001). One of the indicators of empowerment has been suggested as education (Malhotra and Mather, 1997). ...
... To end this gender discrimination microfinance has been recognised as a transforming tool (Chant, 2014). Previously microfinance has been understood as a microcredit tool but with the emergence of modern-day microfinance, it became a banking and empowerment institution by providing micro-savings, micro-insurance, training to the poor who are unable to provide any collateral and are unbanked (Ledgerwood, 1998;Littlefield et al., 2003). ...
... In Sub-Saharan Africa, microfinance is among the major player to reduce poverty and encouraging them in socio-economic development (Van Rooyen et al., 2012). Long before microfinance has seen as a significant player in the upliftment of poor people and enhanced their socio-economic status, microfinance helps them to improve income sources and household expenditure and thus helps to come out from uncertain economic and financial shocks (Ledgerwood, 1998;Littlefield et al., 2003;Robinson, 2001). The role of microfinance in Bangladesh sets an example of poverty reduction, household expenditure, stability to food and non-food items. ...
... Microfinance has been widely accepted as a method of alleviating poverty and improving social and economic welfare. It diversifies the household income of the poor, smoothens the expenditure, and act as a cushion during economic disasters and financial uncertainties (Ledgerwood, 1998;Littlefield et al., 2003;Robinson, 2001). One of the indicators of empowerment has been suggested as education (Malhotra and Mather, 1997). ...
... Similarly, women's access to resources is well connected with their health-seeking behavior and contraceptive use (Develtere & Huybrechts, 2005;Kadir et al., 2003;Amin et al., 1998;Levin, 1994). Likewise, microcredit has a strong association with the education and nutrition of the children of the borrowers (Chowdhury & Bhuiya, 2004;Kabeer & Mahmud, 2004;Quisumbing & Maluccio, 2003;Littlefield et al., 2003;Develtere & Huybrechts, 2005). Littlefield et al., (2003) took a sample of 200 respondents for their research in India. ...
... Likewise, microcredit has a strong association with the education and nutrition of the children of the borrowers (Chowdhury & Bhuiya, 2004;Kabeer & Mahmud, 2004;Quisumbing & Maluccio, 2003;Littlefield et al., 2003;Develtere & Huybrechts, 2005). Littlefield et al., (2003) took a sample of 200 respondents for their research in India. They observed that microfinance allows poor people to protect and increase their sources of income. ...
... It was observed that the client's children have more enrolment and stay longer in school as compared with non-clients. Apart from this direct effect on school enrolment, the Grameen takes direct measures such as scholarships (Steele et al., 1998;Littlefield et al., 2003). ...
Based on the constructivist epistemological point and qualitative research design, the present study attempts to explore the experiences of rural women about microcredit programs. The population of this study comprised of women beneficiaries of microcredit dwelling from District Sheikhupura, Pakistan. The purposive sampling technique has been used to select respondents for in-depth interviews. The researchers have started fieldwork with some broader questions in their minds as informed by the grounded theory approach (Charmaz, 2006; Jerolmack, 2007; Strauss & Corbin, 1990). These in-depth interviews and field observations enabled the researchers to draw some new themes and inferences. The researchers have included all these themes and inferences in their interview guide for further interviews. A total of 21 in-depth interviews have been conducted which include the 7 interviews at the initial stage of data collection. It was observed that microcredit has some positive as well as some negative consequences on the lives of the recipient. It was positively linked with women’s economic empowerment, improvement in their well-being, decrease in intimate partner violence, positive influence on the member’s own and their children’s health, education, and nutrition patterns. However, some of the respondents said that microcredit did nothing with their empowerment rather it indulge them in extreme poverty and increased male dominance at the household level. Keywords: Microcredit, Women Empowerment, Intimate Partner Violence, Patriarchy, Extreme Poverty, Money Lenders
... Microfinance has achieved a universal consensus as an effective tool for alleviating poverty and wellbeing improvement (Iqbal and Akhtar, 2015;Bakhtiari, 2006;Ebimobowei, Sophia, & Wisdom, 2012;Imai & Azam, 2010;Johnson & Rogaly, 1997;Ledgerwood, 1999). The dynamic growth of microfinance activities can lead to the achievement of a wide range of development objectives, including: the fulfillment of self-employment, new firms formation, and income distribution (Bakhtiari, 2006;Johnson & Rogaly, 1997;Khandker, 2005;Ledgerwood, 1999;Littlefield et al., 2003). The role of microfinance goes beyond business investment, to include the improvement ofthe economic wellbeing of households. ...
... The role of microfinance goes beyond business investment, to include the improvement ofthe economic wellbeing of households. For instance, clients" health, nutrition, children education and standard of their life has improved (Angioloni, Kudabaev, Ames, & Werzstein, 2013;Dunford, 2001;Holvoet, 2004;Littlefield et al., 2003;Morduch., 1999). Microfinance is also considered as an essential approach toempower poor especially women (Littlefield et al., 2003;Swaina & Wallentin, 2009). ...
... For instance, clients" health, nutrition, children education and standard of their life has improved (Angioloni, Kudabaev, Ames, & Werzstein, 2013;Dunford, 2001;Holvoet, 2004;Littlefield et al., 2003;Morduch., 1999). Microfinance is also considered as an essential approach toempower poor especially women (Littlefield et al., 2003;Swaina & Wallentin, 2009). It enables them to make their decision independently, improve the quality of their life and dignity (Johnson & Rogaly, 1997;Ledgerwood, 1999;Narayan, 2002). ...
... Sinha, Parida, & Baurah, 2012) and many on the issue of Women Empower ment through microfinance (Goetz & Gupta, 1996;Rajagopal, 1999;Leach & Sitaram, 2002; (Pitt, Khandker, & Cartwright, 2006). Micro financing through Self Help Groups has really helped in contributing towards the developmental goals of a country (Littlefield, Murduch, & Hashemi, 2003;Yunus Muhammad, 2004). ...
... Investing microcredit in the productive activities gives opportunity to get self employed, contribute towards the income of a family and improve the standard of living. (Otero, 1999;Littlefield, Murduch, & Hashemi, 2003;Khandker, 2005;Young, 2010). ...
... stated that the poor are generally excluded from the financial services sector of the economy so microfinance banks have emerged to address this market failure. Authors likeLittlefield et al. (2003) and the UNDP (2004) have commented on the critical role of microfinance in achieving the Millennium Development Goals (MDGs).Littlefield et al. (2003) state that microfinance is a key strategy in reaching the Millennium Development Goals and in building global financial systems that meet the needs of the poorest people, referring to various case studies, they showed how microfinance has played a role in ameliorating poverty, promoting education, improving health and empowering women. TheSimanowitz (2003) grouped microfinance impact into three areas which are: financial services (loans, deposits and leasing); non-financial services (classes on literacy, numeracy, nutrition, health); and business development".Ehigiamusoe (2008) observes that small loans are effective weapons for addressing mass poverty since most poor cannot afford any amount to expand or even initiate a small-scale business which greatly influences the economy of Bangladesh.Adeyemi (2008) observes that across the globe, governments of various developing countries have sought to provide finance to the poor through the creation of agricultural development banks, special lending schemes, and the support of the growth of cooperatives and other self-help groups (SHGs). ...
... stated that the poor are generally excluded from the financial services sector of the economy so microfinance banks have emerged to address this market failure. Authors likeLittlefield et al. (2003) and the UNDP (2004) have commented on the critical role of microfinance in achieving the Millennium Development Goals (MDGs).Littlefield et al. (2003) state that microfinance is a key strategy in reaching the Millennium Development Goals and in building global financial systems that meet the needs of the poorest people, referring to various case studies, they showed how microfinance has played a role in ameliorating poverty, promoting education, improving health and empowering women. ...
... Microfinance/microcredit is a tool for economic and social development, especially for rural and urban poor whose access to capital is limited. Microfinance programmes focusing on women have become one of the key donor poverty alleviation tools (see, e.g., Littlefield et al. 2003). The industry has been successful in providing 'financial services for micro-entrepreneurs, small-business owners and other individuals who otherwise lack access to formal banking and other related services' (Pomeranz 2014, p. 2). ...
... Microfinance has transformed access to financial services for lowincome populations worldwide (Espinosa-Vega et al. 2020). Female empowerment has often been the key target of the industry as some 85 percent of the microfinance clients are women (Daley-Harris 2007; see also Littlefield et al. 2003). ...
This paper reports the findings from a microcredit (financial inclusion) scheme that has
been operated by a non-governmental organization since 2012 in a local community in Ghana, and sustained through the COVID-19 pandemic. It first examines microfinance, women’s empowerment and third-sector organizational dynamics. It then provides an overview of microfinance in Ghana within the context of the COVID-19 pandemic, followed by dissecting the organization’s microcredit, training and women’s empowerment programmes. The following part documents the findings, with brief concluding thoughts and policy implications appearing in the last section. It is argued here that financial schemes, particularly those operated by third-sector organizations, can play a significant role in helping women in particular to deal with the secondary effects of COVID-19 by providing
improved non-financial services and easy access to microfinance at low, sustainable interest rates. These findings have implications for policy formulation and sustainable development.
... Microfinance has emerged as one of the far-reaching and impactful initiatives among various sustainable developmental proposals undertaken by the government of India in the last couple of decades. It has emerged on a global scale as a key strategy to reduce poverty and promote development (Littlefield, Morduch, and Hashemi 2003). Looking back, it has been seen that the growth of microfinance institutions (MFIs) evolves from 1991 in the light of financial sector reforms in our country. ...
... There is a clear and direct relationship between access to credit and an increase in the status of women within their households and communities (Hunt 2002). According to Elizabeth Littlefield, Jonathan Morduch, and Syed Hashemi (2003), microfinance credits are not always utilized as business loans, but borrowers also use such borrowed funds in health and education to manage household emergencies and to meet the wide variety of other cash needs that they encounter. Katsushi Imai, Thankom Arun, and Samuel Kobina Annim (2010) observe that poverty reduction may become a reality for those households in India that access microfinance for productive usage of the loan. ...
Empowerment has been treated as one of the influential poverty alleviation strategies of the day. Various microfinance institutions have emerged with the objective to enhance empowerment, especially for women through different assistance programs. This study attempts to explore the impact of microfinance institutions towards the economic, social, and psychological empowerment of women borrowers using primary data collected through a structured questionnaire from the backward districts of West Bengal, India. In addition, the study also tries to identify the important determinants of empowerment among such borrowers. Applying t-test, logistic, and ordered logistic regression it has been observed that Microfinance Institutions (MFIs) have a significant role towards betterment in the standard of living and empowerment of such women borrowers.
... Roy & Biswas, (2016) researched the impact of microfinance on the socio-economic changes in the rural community of Bangladesh and found that microfinance play key role in promoting education and reducing dropouts rates from educational institutions. Similarly, Holland and Wang(2011); Maldonado and González-Vega (2008); Banerjee et al. (2013) explored the impact of microfinance on educational outcomes and revealed significant impact on education and poverty reduction likewise Littlefield et al.(2003), also witnessed a positive impact of microfinance on the children education of the beneficiaries. Thus, creating access to education is one area of intervention under the poverty reduction strategy.Therefore, we hypothesise that: H1: Access to microfinance has a significant positive impact on the education of the households 2. ...
... regarding microfinance as an effective tool in supporting health related expenditures. Littlefield et al. (2003) also acknowledged the importance of microfinance intervention in the health facilities and conformed the notion that micro finance beneficiaries have better health practices and nutritional level as compared to nonbeneficiaries. In order to know the significant impact of microfinance on beneficiaries, the following hypothesis is developed. ...
As Poverty has become a global challenge for all the nations around the world, from the past many years, different strategies have been used to reduce it. However, since 1980s Microfinance has become a powerful tool to alleviate poverty and it's not adopted even in the developing countries but also developed nations have been practicing it. Many of the past studies used the economic indicators to measure the impact of microfinance on poverty reduction, and few have concentrated on the social indicators. The purpose of this research is to examine the effect of microfinance as a poverty reduction in terms of social indicators in the rural areas of northern Khyber Pakhtunkhwa, Pakistan. The objective of this research is to check whether the established NGOs in the concern areas have been successful in bringing social change in the life of the beneficiaries. For the purpose of analysis, the structural equation model is applied to a sample of 440 collected through a structured questionnaire. Results show that microfinance had a negative impact on the health and education of the beneficiaries. This research indicates that more funds and priority should be given to the education and health sector because they have equal importance as compared to the other economic indicators.
... Considering less economic independence and individuality compared to men, women have been empowered through specially designed microcredit offerings in a regular time interval Ganle et al. 2015;Jha 2019). Not only in economic front but also other dimensions of empowerment shapes up due to the availing and incorporating microfinance services in different avenues (Bhatia and Singh 2019;Littlefield et al. 2003). ...
... But most of the literature revolves around either employment generation or empowerment issue Drolet 2011;Littlefield et al. 2003). Moreover, past studies consider economic upliftment as an indication of the empowerment level in this regard. ...
This study examines the responsibility of microfinance institutions towards changes in the livelihood practices of the borrowers. Considering a total of 350 borrowers of West Bengal, the impact of microfinance on their lives has been observed empirically by applying different statistical tools. In this study, it has been observed that MFIs with its offerings support to shape up the lifestyle practices of the beneficiaries over time. The microcredit utilisation helps the borrowers to start up income-generating activities and engagement of manpower within their household and beyond. This study contributes to the extant literature on microfinance by comparing pre-loan and post-loan phases and identifies the contemporary role of MFIs. By considering the appropriate framework and approach, this study is explicable towards policymakers for designing further policies in this context and helps identify resources that need to flourish the current state in the future.
... Cell death by apoptosis acts as a barrier against cancer progression (Basu, 2022). Chemotherapy drugs also induce apoptosis in cancer cells (Littlefield et al., 2003). ...
In recent years, advances in nanotechnology have enabled researchers in the field of diagnosis and treatment to use nanoparticles or complex multifunctional nanosystems for the diagnosis and targeted treatment of several diseases, including cancers. Graphene oxide is one of the most studied materials in the world. Due to its unique properties, it has been in the center of researchers' attention and has been named as a material for the future. Graphene oxide is made up of only carbon atoms, where each carbon atom is bonded to three other carbon atoms with sp2 hybridized orbitals, creating a honeycomb and hexagonal lattice. Graphene oxide is a layered carbon structure with oxygen-containing functional groups that are attached to both sides of the edge layer and also to the edges of the graphene oxide sheet. Due to its two-dimensional planar structure, chemical/mechanical stability, excellent sensitivity to light, excellent conductivity, high surface area and good biocompatibility, graphene oxide nanoparticles have been placed as a suitable candidate in the treatment of cancers. Graphene oxide can be used to make a drug delivery system for anti-cancer drugs such as paclitax, doxorubicin and methotrexate, and the drug can be directed to the desired location by loading it. This short review aimed to have an overview on the anticancer effects of graphene oxide on gastrointestinal cancers.
... Studies that claim to have demonstrated a positive effect of microfinance on poverty include those by Abed & Matin, 2007;Ajit & Anu, 2012;Beklentileri & Alemu, 2018;Kaladhar, 1997;Kebede & Kebede, 2016;Khandker & Pitt, 2005;Littlefield et al., 2003;Mann, 2003;Manroth, 2001;Panjaitan-Drioadisuryo & Cloud, 1999;Phan et al., 2022;Rahman & Razzaque, 2000;Robinson, 2002;Swain et al., 2008;Vatta, 2003;Vonderlack & Schreiner, 2002 and others. From a review of the findings of 32 studies of microcredit programs around the world, Sebstad and Chen (1996) for example concluded that participation in microcredit programs had positive effects at the enterprise, household and individual levels. ...
... Generally microfinance is known as a provision of a wide range of financial services such as credit, insurance, savings, deposit and payment services to poor and low-income households who are excluded from conventional financial services for lack collateral (Littlefield, Murduch, & Hashemi, 2003;Robinson, 2001). Limited savings and lack of access to credit make it difficult for many poor people, particularly women in low-income countries, to become self-employed and to undertake productive employment and income-generating ventures (Khandker 1998). ...
This paper aims to examine the nature of loan schemes for the urban informal sector workers (UISWs). This paper believes that examining loan schemes is an effective way of understanding the conditions of UISWs. Moreover, analyzing the perception of UISWs and loan providing agencies (LPAs) to each other is also significant in this regard. An important objective of this study was to find out the challenges that faced by UISWs. This study finds that negative perception (18.82%) towards loan providing agencies, lack of trust (22.35%), no need of taking loan (4.71%), possibility of being failure of paying back loan (17.25%), taking loan is a bad practice (23.75%) are some reasons of not taking loan. Present study finds that having political networks and socio-economic status have relations to get loan. Besides, loan providing agencies give importance to economic benefit of the agency instead of social development of UISWs.
... Perkembangan ke arah ekonomi yang berbasis kepada aset pengetahuan dan didukung oleh infrastruktur teknologi informasi yang canggih telah memberi dampak yang besar bagi perubahan strategi bisnis lembaga-lembaga keuangan mikro (Kalyango, 2005). Lembaga-lembaga keuangan mikro yang sebelumnya lebih berorientasi kepada misi sosial akhirnya memilih untuk menyediakan produk dan jasa mereka secara komersial agar dapat bertahan dalam lingkungan bisnis yang semakin kompetitif (Littlefield et al., 2003). Kamukama (2013) menemukan bahwa modal intelektual yang terdiri dari human capital, structural capital dan relational capital berpengaruh terhadap keunggulan kompetitif lembaga keuangan mikro di Uganda. ...
Tujuan dari penelitian ini adalah untuk mengetahui pengaruh dari modal intelektual terhadap Keunggulan Kompetitif Berkelanjutan Koperasi Simpan Pinjam (KSP) di Kota Kupang. Penelitian ini menggunakan pendekatan kuantitatif dengan metode survey. Hasil Penelitian menunjukkan bahwa dari 3 komponen Modal Intelektual, hanya Structural Capital yang berpengaruh terhadap Keunggulan Kompetitif Berkelanjutan. Sedangkan Human Capital dan Relational Capital tidak berpengaruh terhadap Keunggulan Kompetitif Berkelanjutan. Penelitian ini dapat menjadi acuan bagi para pengambil keputusan dalam pengembangan keunggulan kompetitif berkelanjutan KSP di Kota Kupang melalui modal intelektualnya.
... This could be termed as women's financial inclusion; other than financial inclusion, women empowerment is determined by different factors. Numerous research have demonstrated that women's financial inclusion can contribute to their empowerment (Littlefield et al., 2003;Mayoux and Hartl, 2009). The model for women empowerment is as follows: ...
Purpose
This paper aims to conduct an empirical investigation of how financial inclusion impacts women empowerment. Then, it examines the overall effect of various dimensions of financial inclusion on women empowerment in developing countries using the panel data for the time period of 2004–2019.
Design/methodology/approach
To overcome the problem of endogeneity, the study has used a fixed-effect model, two-stage least square GMM estimation techniques. Secondary data was collected from various websites such as WDI, UNICEF and UNESCO.
Findings
The results show that generally, the influence of financial inclusion on women empowerment is positive, confirming previous empirical literature results. The study found evidence that if there is more financial inclusion in the country, it will benefit women by enabling them to see their qualities and skills, which make them strong and dominant. Proper development and enhancement of those skills are only possible if proper education, awareness and space are given to express oneself. According to the results, financial development, gender parity index and women's employment positively affects women empowerment, while gender discrimination has a negative impact on women empowerment. The study highlights that to encourage women empowerment in developing countries. Governments and policymakers have to carefully check and reconsider that what are the most optimal financial inclusion programs that will help to improve the women empowerment in the country.
Practical implications
The study highlights that to encourage women empowerment in developing countries, governments and policymakers have to carefully check and reconsider what are the most optimal financial inclusion programs that will help to improve women empowerment in the country.
Originality/value
The literature does not clearly show the impact of financial inclusion dimensions on women empowerment in developing countries. Therefore, there is a need to use all the dimensions of financial inclusion to check the overall impact on women empowerment in developing countries. For this purpose, the financial inclusion index is developed. A new dimension of non-life insurance is introduced, which has not been used previously by any researcher to check financial inclusion impact.
... Microfinance has emerged as an essential tool of development policy and poverty eradication to the extent that (Littlefield et al., 2003) argue that microfinance is integral to achieving the Millennium Development Goals. The basic assumption is that access to more finance will reduce poverty. ...
This study reviews the qualitative and quantitative research on the impact of microfinance (especially micro-credit) on the poor in Kenya to enable practitioners, donors and policy-makers understand the nature of the evidence available. Despite a large body of impact studies on the effectiveness of microfinance on the poor in Kenya, no systematic review has been conducted that brings together all these studies and evaluates the nature of the evidence of microfinance's impact on the poor in Kenya. In general, this study discovers that microcredit positively impacts the poor; however, the results are not uniform. The proposition of microfinance as the panacea for poverty and women's empowerment might be flawed. On the other hand, microcredit could cause more harm than good if the amount is spent on consumptive activities rather than investing in the future or if the businesses fail to generate enough profit. The study recommends consideration of both the potential good and the potential harm whilst making policy decisions on microfinance in Kenya. Microfinance impact assessment studies should develop a standardised methodological framework to produce consistent results. Similarly, microfinance should not be considered the only way of rescuing the poor from the chains of poverty; in fact, other structural solutions should be sought for solving structural problems such as poverty.
... The term "microfinance" refers to a wide range of financial aid, not merely microcredit. The addition of nonmonetary services like education and counseling to the more commonplace services of savings and remittances [1] . Micro-enterprises, or small businesses, are widely acknowledged to play a significant part in propelling global growth. ...
Microfinance is a service that gives people with low incomes, like consumers and self-employed people, access to financial services like credit, savings, micro insurance, remittances, and leasing who don't usually have access to banks and similar services. Its main goal is to give people permanent access to good financial services, like insurance, savings, and moving money from one account to another. As microfinance is accepted by more people and moves into the mainstream, services for the poor may also increase, making them more effective and reaching more people while lowering costs. This research set out to learn more about how micro-finance might help foster entrepreneurial growth in countries like India that are still in the process of industrializing and modernizing their economies. Despite India's impressive progress in the banking sector, a sizable portion of the country's population is still underserved and does not have access to modern financial services. ___________________________________________________________________________________ Keywords: Micro-Finance, Entrepreneurship Development. ___________________________________________________________________________________ Introduction Microfinance organizations provide loans to startups and small businesses that don't have easy access to conventional banking services. Microfinance was developed with the intention of assisting the poor and fostering economic development. Progress made in terms of rising corporate profits, expanded access to quality-of-life resources, and the liberation of individuals, especially women. The term "microfinance" refers to a wide range of financial aid, not merely microcredit. The addition of non-monetary services like education and counseling to the more commonplace services of savings and remittances [1]. Micro-enterprises, or small businesses, are widely acknowledged to play a significant part in propelling global growth. The industry is characterized by its low barriers to entry and its openness to change. Microbusinesses are essential to the development of any nation because of their innovative and enterprising nature. Many developing nations, like India, rely heavily on small and medium-sized enterprises (SMEs) for economic development and job creation. There have been numerous attempts to measure the impact of microfinance programmes, but a proper analysis is labor-intensive and intricate [2]. Each corner of the "triangle of microfinance" reaches, impact, and sustainability is shown to be essential to the overall success of microfinance operations in this study. Even if a programme has a positive impact on its consumers, it will only contribute marginally to the global effort to decrease poverty if it does not specifically target the poorest people or if it cannot be sustained over time. Microfinance allows low-income clients, such as consumers and self-employed individuals, who have historically been excluded
... In their words, [60] saw that there is increasing reliance on microfinance as an instrument of poverty alleviation in Pakistan. [69] has commented on the relevance of microfinance in achieving the Millennium Development Goals (NDG) eradication of poverty and hunger, achieve universal education, promote gender equality and empower women; reduce Child mortality; improve maternal health; combat HIV/AIDs, Malaria and other diseases; ensuring environmental sustainabil-ity; and develop a global partnership for development [86]. ...
ABSTRACT —This paper assesses the impact of microfinance bank on small and medium scale enterprise in Nigeria. The study admits that
microfinance banks products are the sources of SMEs growth in Nigeria despite of its attendance shift and shortcomings in the realization
of the schemes objectives. Though, the past efforts by the Nigeria government to promote the scheme has not yielded much desire
outcomes, microfinance banks still holds a lot of prospects for the active low income earners. It creates employment opportunity, reduces
vulnerabilities, empowers the poor and enhances their innate consumption propensity. The study uses secondary data covering from 1992
to 2015 and adopted econometric techniques of OLS for analysis. Specifically, the empirical results revealed generally that a microfinance
bank loan has a significant negative relationship with SMEs in Nigeria in both short run and at long run. The negative state of the result is
an indication that Microfinance LOAN has not really yielded the expected positive impact on SMEs. All the other coefficients of MASSET,
MDEP and MGE failed the significance test at the 5% per cent level. This indicates that in the short run, the level of MASSET and activities
has a rather weak positive effect on SMEs performance in Nigeria. The implication of this result is that, increase in the level and
performance of SMEs is not necessarily caused by the size microfinance banks in the country in the short run. This also goes to show that
the total microfinance assets based in the country is rather too weak to fully support or provide any meaningful impact on the SMEs sector
in Nigeria. It concludes therefore that there is the urgent need for microfinance banks operations and the relevant regulatory authorities to
come up with policy measure that will ensure that microfinance banks assets base, deposits and gross earnings are improved upon in
order to effectively support the growth of the SMEs sectors in the country. It recommends that the government should arise to its
responsibility to the sector by providing the enabling environment for microfinance bank to strive and effectively supporting SMEs. Hence,
there is the need also to spread the loan repayment over a long period or increase the moratorium so as to enable the microfinance clients
have a greater use of the loan over a reasonable period for meaningful and profitable investment which ensure easy repayment.
... In the 1980s, microfinance became recognized as a critical tool for reducing poverty, and it was identified as a key tool for achieving the millennium development goals (MDGs) by the year 2015 [56,79]. Though the evidence on the effects of microfinance is mixed, microfinance was found to result in a moderate reduction in poverty in another study, though some argue that this is not the case because it does not reach many of the poorest potential recipients [60]. ...
Eventhough gold mining has both the positive and negative impacts on the environment, its negative impacts like depletion of natural resources, loss of grazing land and degradation of the environment tends to outweigh its positive contribution. This study was carried to see how microfinance institutions (MFIs) can use institutional force in compelling the gold mining sector to adhere to environmental management principles in Zimbabwe. The study explores the role that can be played by microfinance in promoting green goldmining in Zimbabwe. Green microfinance besides its traditional finance and social role also aims for the promotion of environmental management. Microfinance institutions play a critical role in promoting environmental sustainability, even though they are well misunderstood as the role they play on the ground requires a guideline. Therefore, to understand the role that can be played by microfinance institutions in promoting green gold mining this study advocate for a conceptual framework to act as a guide to microfinance institutions. The development of a conceptual framework for the role of microfinance institutions in bridging the sustainable development gap in the goldmining sector is the work's key contribution. Further work would include conducting in-depth interviews with key stakeholders in the Zimbabwean microfinance sector and gold mining sector to validate the framework.
... Theoretically, several other channels through which microfinance assists the poor have been properly articulated in the literature (Little, et al. 2003, Hulme 2000, Binswanger and Khandker 1995and Chowdhury, 2009). However, the role of microfinance in reducing poverty has been disputed in the literature. ...
The paper examines the impact of microfinance on poverty alleviation in Ondo State, Nigeria. The paper is based on a survey of 240 beneficiaries of microcredit loans in Ondo State. The results of the analysis show that most beneficiaries of micro credit loans are educated youth between the age brackets of 18 and 40 years. Many of the beneficiaries utilized their loans to procure durable equipment needed in their small scale enterprises. The results show that loan empowerment has a significant positive effect on beneficiaries’ welfare. Access to credit allowed the beneficiaries take advantage of economic opportunities by providing a fundamental basis for planning and expanding business activities.
... Microcredit is seen not only as a way of alleviating poverty (Otero, 1999;Hulme, 2000;Remenyi, 2002;Littlefield et al., 2003;Banerjee, 2008); but also a means of empowering women (Barr, 2005;Mcguire and Conroy, 2010;Fouillet et al., 2013). These aspects are discussed below: ...
The overall aim of this research is to evaluate how a UN funded group-based microcredit programme was implemented (considering Javanese culture and Islamic teaching) and what impact it had on achieving gender equality in rural Indonesia. The research seeks to form a comprehensive assessment and understanding the interconnection of gender, Javanese culture and Islamic teaching in the functioning of local savings and loan groups (Affinity Groups/ AGs) established as part of an IFAD funded project in Eastern Java (Participatory Integrated Development in Rainfed Areas/ PIDRA). This research demonstrated that AG can be analysed by hybrid organisation theory, due to its combination of multiple logics, value systems, stakeholders, and goals/missions. As a case study, the research applies a combination of qualitative research methods: document analysis (review of documents), focus group discussion (FGD), and semi-structured interviews. The fieldwork was conducted over three months (April-June 2012). Semi-structured interviews were conducted with 38 participants; 8 PIDRA team representatives and 30 AG members. The study shows that poverty indicators, socio-cultural and religious aspects both influenced the initial process of AG formation i.e. selection of villages and identification of intended beneficiaries of AG members. Strengthening institutional capacity through the formation of AGs, a Federation of AGs, and a Rural Development Institution (RDI) helped the AG members to be involved in various aspects of decision-making in rural development. The findings also confirm that Javanese culture and Islamic teaching influenced AG members’ views and behaviours with respect to gender and microcredit activities; and these aspects have had an impact on the continuity of microcredit programmes. However, although the microcredit programme delivered by the AG had a transformative impact on women’s ability to earn incomes benefits and gender awareness, they tended to increase their workload.
Keywords: Microcredit, Affinity Group, Hybrid Organisation, Gender, Javanese Culture, Islamic Religion
... Differences in literacy, property rights and social attitudes about women may limit impact outside of the immediate household (Cheston et al, 2002). Empowerment depends on program, design, market, and loans size (Littlefield et al, 2003;Sarangi, 2007;Mayoux's, 2000;Cheston et al, 2002). Microfinances are potentially harmful to women (husbands jealous of their wives' new financial power may lead to power struggles and hence violence), it can create a large debt and it is not universal in application (Swope, 2005). ...
Abstract
In Tanzania the position of women in terms of economic and social status has been low compared to men. Majority of women are poorer, have low education and suffer from traditions and customary beliefs. Thus, empowering women is one of the main issues in Tanzania and sub- Sahara Africa context. Microfinance services are considered to be the entry point towards empowering women in economic and social status. However, it is also considered that Microfinance Institutions are extorting money from poor women through high interest rates, causing higher social pressure and domestic violence. The study uses quantitative and qualitative data from Serengeti District council at Mara region of Tanzania. The study used cross-sectional studies, whereby data was collected at a single point in time. In total 20 women participated in the survey. The data obtained was analyzed by using Statistical Package for Social Sciences (SPSS). The study found that, the impact of Microfinance Institutions on women empowerment is very crucial in Tanzania. Women members of Microfinance Institutions have more control over savings and income generated from the business, greater role in decision making, and greater contribution in household income. However, the women do not participate in decisions regarding inheritance of household assets. With this regard, microfinance institutions have more contribution in women empowerment.
Keywords: Microfinance, Institutions, Empowerment, Household, Decision making
... Microfinance institutions are known as institutions that provide financial services such as loans, insurance, and saving for poor communities. Unlike conventional financial services, loan services in microfinance institutions do not require any guarantee (Littlefield et al. 2003). Trust is an essential factor for service companies. ...
One of the strategies to address the issue of poverty in rural areas is by empowering women. East Java provincial government, Indonesia, has allocated grants for women’s co-operatives in rural areas since 2015, in the same year of the Sustainable Development Goals (SDGs) launch. This study describes the pattern of credit use in the women’s co-operative and its impact on low-income family livelihoods. The research was conducted at two women’s co-operatives in Plumpang District, Tuban Regency, Indonesia, from October 2017 to May 2018 using the qualitative approach. The data were collected through observation, in-depth interviews, focus group discussion, and survey about the co-operative members’ credit use. This study found that the co-operative members used the loans for daily needs, tuition fees, agricultural activities, and non-farming economic activities. The co-operative has increased children’s participation in low-income family informal education and strengthens social capital among poor people in rural areas; however, the co-operative still cannot cut the chain between low-income families and moneylenders the village. Consequently, further development of co-operatives in terms of quality and quantity is necessary for achieving the SDGs.
... The commercial banking sector does not consider the poor bankable owning mainly to their inability to meet the eligibility criteria, including collateral. Thus, the poor people in most countries virtually have had no access to formal financial services [Littlefield, Murduch and Hashemi (2003)]. The informal financial alternatives such as family loans, moneylenders, and traders are usually limited in amount, often rigidly administered, and in most of the cases involve very high implicit and explicit costs forcing the destitute stuck in poverty cycle for generations. ...
The study entitled "Efficiency and Sustainability of microfinance programs-In interest-based and interest-free MFIs in Bangladesh" is the outcome of mainly the primary data. The main research issue is to critically examine the efficiency and sustainability of MFPs. The E&S of the MFPs are imperative in order to run MFPs in the country on a long term basis. The researchers have become interested to conduct a research study on these two vital issues of MFPs. The empirical analysis of the study covered the period 2008 to 2010. The sample size of the study was 30 of which 12 were executives and 18 borrowers representing 06 MFIs. Efficiency and Sustainability have been examined from three main angles e.g. financial E&S, productive E&S, and outreach efficiency and sustainability. The study reveals that the efficiency and sustainability of MFPs of the selected MFIs have been more or less satisfactory. However, the study has identified major issues impeding the efficiency and sustainability of MFPs which have been mentioned in the study. Their remedial measures have also been presented in the study as opined by the respondents. Research Field: Microfinance
... Simanowitz (2001a, p.5) highlights variety of things resulting in the social process of the poorest, that lessens the impact microfinance has on poverty; selfexclusion , exclusion by alternative members, exclusion by MFI workers and exclusion designedly. Markowski (2002) and Rogaly (1996) argue that MFIs in their project styles ar failing to satisfy the requirements of the terribly poor and necessitous, UN agency do have a requirement for microfinance services, particularly for savings (Littlefield andRosenberg, 2004 andDichter, 1999). they're unnoticed, nevertheless associate objective of the Microcredit Summit is to succeed in a hundred seventy five million poor folks by 2015 however MFIs don't appear to air target for meeting this objective. ...
The purpose of this book is to assess the dynamic impact of
financial inclusion on economic growth in developing countries like
India. The scholarly articles reveal that there is a positive and long
run relationship between financial inclusion and economic growth.
Various institutional frameworks for inclusive economic growth have
been studied under the chapters like micro finance institutions, small
finance banks & digital finance. The emerging challenges of growth
like gender and regional disparities in growth and rising NPAs and
banking crisis were discussed in detail. This book also discussed the
policy framework for inclusive economic growth through make in
India, skill India, digital India, smart cities initiatives for a better
understanding of overall economic development.
Microfinance, recognized as a transformative financial service, is designed to address poverty and economic disparities. This research provides a comprehensive evaluation of the scope, expansion, and sustainability of Microfinance Institutions (MFIs) in Maharashtra, with a particular focus on rural areas. While acknowledging the positive impact of microfinance on societal well-being, the study raises concerns regarding the long-term viability of these institutions. The research takes an in-depth look into the operational dynamics of microfinance, highlighting the delicate equilibrium between outreach and sustainability. Key aspects covered include the necessity for microfinance, the presence of MFIs in rural Maharashtra, and the impact of microfinance on poverty reduction. Additionally, the study analyses client feedback, the role of informal financial organizations, and the contribution of MFIs to rural financing.
At the end of 2017, microfinance institutions reached an estimated 139 million low-income and underserved clients with loans totaling an estimated 114 billion dollars. These levels represented a growth of 5.6% in total borrowers and 15.6% in loan portfolio. The overall loan portfolio remains just as concentrated in leading global institutions as in prior years. The 100 largest institutions (ranked by loan portfolio) account for 76% of both borrowers and loan portfolio (same as 2016), putting their reach at 87 billion dollars in loans for 108 million borrowers 1. Microfinance is considered to be one of the most powerful solutions to support micro and small enterprises and as an engine for economic growth in many developing and developed countries including Albania. Fighting financial exclusion must remain a priority and microfinance remains one of the tools to achieve that goal. It responds to a real need for inclusion of the most vulnerable people. Its impact depends on how it is operated and implemented. Microfinance market research has often been driven by the demand side of the equation: who purchased microfinance services and what their needs were. In Albania, information on different sectors of the economy has two main sources: Bank of Albania and INSTAT. Exactly the data published by these two institutions have been used to analyze the factors affecting the supply of microcredit by non-bank financial institutions. Dynamic analysis of the VAR model, incorporating many time series that interact through a few dynamic factors, is used to perform the dynamic model analysis by the internal factors of the initial data. Several econometric issues are addressed including estimation of the number of dynamic factors and tests for the factor restrictions imposed on the VAR. This analysis consists in finding links to the use of forecasts for economic purposes.
The government of Pakistan has been relying on the microfinance industry to reduce poverty among poor women in Pakistan. Using a theoretical framework that argues for limiting the abilities and capacity of existing microfinance services, we empirically investigate the odds of poor women remaining in poverty despite microfinance loan provision. We collected data from four provinces in Pakistan and analyzed it using multivariate logistic regression. Three‐fourths of the 442 women respondents live below poverty lines and are unable to emerge from poverty due to factors such as: housing instability, food insecurity, lack of savings, insufficient loan size and high installment rates, lack of gender solidarity through group borrowing, and threats of domestic violence. Lack of health insurance and critical health problems such as infectious diseases, having suffered an injury, chronic ailments, and mental health challenges are also preventing poverty emergence. We conclude by recommending key social policy development agendas that need to be introduced by the state, in partnership with the microfinance sector, to support women borrowers and help them emerge from poverty.
In today’s competitive world, credit risk poses a significant challenge to lending institutions such as microfinance institutions (MFIs) due to its impact on their long-term institutional and financial viability. In recent years, high employee turnover has also emerged as a threat to the sustainability of MFIs. Therefore, this study investigates the impact of employee turnover on the credit risk of MFIs using nine years of unbalanced panel data (from 2010 to 2018) of 1,266 unique MFIs from 101 countries, obtained from the World Bank databases. In general, we observe that employee turnover raises the credit risk of MFIs. The result is robust to endogeneity-correction techniques (e.g., Hausman-Taylor) and other alternative specification/robustness tests. The findings offer valuable insight for MFI managers, enabling them to make informed decisions about employee turnover management to mitigate credit risks.
Financial services and micro credit are targeted at the poor to improve their livelihoods. Several projects have come and gone yet the poverty situation does not seem to improve. MiDA CDFO started in February 2007 and ended in November 2011 also came with the main objective of commercializing subsistent agriculture and agribusinesses through the value chain approach in other to improve the livelihoods of its beneficiaries. Therefore, the study was to determine the effects of credit on agribusinesses in northern Ghana using the MiDA CDFO credit scheme in the Tamale Metropolis as a case study. To achieve this, purposive and simple random sampling methods were used to select 120 respondents from six beneficiary groups. Primary and secondary data were collected for the study.
Rice processing, shea butter extraction, and crop farming were the main agribusinesses identified. The credit was timely but inadequate for most of the beneficiaries. 75% of the respondents agreed that the credit that was given to them mainly in groups was difficult to access. The credit has impacted significantly on consumption as agreed by 95.8% of the respondents. Incomes and savings level of beneficiaries have also appreciated marginally. 75.8 % of the respondents agreed that the credit has improved their businesses. The MiDA CDFO credit scheme was generally good and timely and should be sustained and expanded to so that others could also benefit.
This research paper aims to address the problem of financial inclusion and resilience in the current sustainable development framework. The development agenda designs access to finance a human right and a prior strategy to achieve Sustainable Development Goals (SDGs). Microfinance can play a decisive role in smoothing the risk of adverse events It acts as resilience policy, tackling vulnerability and poverty, empowering people and vulnerable categories and improving and enlarging their capabilities. This work explores the existing connections between the development agenda and microfinance as a strategy to foster financial access. To this end, summative content analysis is performed on the United Nations General Assembly Resolution A/RES/69/315 – fulfilling a research gap. This inquiry handles 6 selected SDGs, ascribable to 3 dimensions, detecting 5 sub-dimensions and 16 domains. Analysing Millennium Development Goals and Sustainable Development Goals, the study also finds increased importance attributed to the topic, key issues and policy strengths and limitations. Importantly, the analysis shows that the environmental dimension is still neglected in the analysed corpus, not appearing in any of the examined SDGs. The findings suggest investing in these channels, drafting governance patterns and modelling resilience and development policy to vehiculate improved ecological and institutional results and concerns.
The last ten years have witnessed a heightened interest in infrastructure in both developed and developing countries, with emphasis on the financial crisis in developed countries, and the recurring attention on growth and poverty reduction. An edition of the UN Report underlines the choices available to policymakers across the range of economic, social, cultural and political challenges that are needed to bridge the urban divide. The term “inequality” has many different meanings. Shortly we describe how an indicator of economic well-being is distributed over a particular population. The coefficient or index is commonly used for measuring the grade of difference in size, income, wealth, costs, etc. Gini’s Coefficient (1921). Obviously the index only considers one aspect of difference, that of the distribution of income. The effect of social services which are administered directly, as for example, the Health Service and Education, even though they are extremely important for a substantial equality of rights and opportunities, is not taken into account. As a group of eminent planning experts recognized in the Global Report on Human Settlements 2009: “Among the most significant challenges that urban planning has to address in the next few decades are increasing poverty and inequality, as well as the rapidly expanding urban sector.” Urbanization, therefore, does indeed play a positive role in overall poverty reduction, particularly where supported by well-adapted policies.
This study examined the extent to which Mircofinance Banks have contributed to poverty reduction of the active poor rural dwellers in Nigeria. The survey research design was adopted in this study. Questionnaires were used in data collection while the data obtained were presented and analysed using tables and simple percentages respectively. The results show that Microfinance Banks in Nigeria have not significantly contributed to rural poverty alleviation. The major reasons being that most Microfinance Banks are found in urban centres and cities as well as the poor information available to rural dwellers on the activities of these Banks. The paper thus recommends that government should encourage the establishment of Microfinance Banks in rural communities as this will afford rural dwellers who do not have direct access to formal banking services, an opportunity of enjoying banking services at their doorstep.
India has achieved a considerable success in expanding the outreach of Micro Finance Institutions (MFIs) to promote socio-economic development of the poor sections of the society. However, a transition from social enterprise to commercial enterprise model in the early twenty-first century has led to a tidal wave of criticism centering round the microfinance sector across the globe. Aggressive competitions of MFIs provided the necessary impetus for the inevitable ‘microfinance bubble’ (Andhra Crisis and its spillover effect in the context of India), which ultimately raised a question on the sustainability of MFIs. Microfinance Information Exchange Database is extensively used in developing a pooled dataset of Indian MFIs to examine the impact of crisis on the sustainability of MFIs. In addition to crisis, this study examines the implications of other financial and operating performance in explaining sustainability of MFIs in the changing scenario. Results reveal a positive and significant influence of crisis, return on assets, return on equity, yield on gross portfolio and a negative and significant effect of financial expenses to assets and operating expenses to assets in explaining variation of sustainability score of selected MFIs.
The present study aims to contemplate the role of microfinance toward financial inclusion. The present economic scenario because of global financial issues has raised doubt regarding the past perspective on the positive role of finance in the growth and development of an economy. Moreover, financial performance has become a focused area for microfinance institutions instead of empowerment and reduction of inequality which was the base for their formation. Therefore, the chapter examines the behavior of microfinance toward curbing financial inequality across different regions in the world. The study further highlights the problems and prospects associated with the role of microfinance in financial inclusion. Adopting descriptive methodology using various secondary data sources, the present study arrives at the conclusion that a major part of the regions has reached the financial inclusion mission with some lacunae. The study thus suggests the use of digitalization and innovation aspects in the present digitalized world to the fullest in order to achieve the sustainability of the qualitative results.
For achieving long-term sustainability of economic growth, bringing in the benefits of growth to all sections of the society is critical. Microfinancing by microfinance institutions (MFIs) hitherto remains a powerful tool for development and it has bought many changes in the lives of many poor people. In this study, an attempt has been made to measure efficiency of MFIs operating in West Bengal for 2016–17 to 2018–19 through Data Envelopment Analysis. As evident from Shapiro Wilk test the study shows, efficiency scores follow a normal distribution. Further, Friedman test reveals a significant difference in efficiency scores during the study period. To get more specific result Wilcoxon signed-rank test is used. The study reveals that all the nine inefficient MFIs have the scope of producing 1.17 times to 4.32 times with the same level of input. To overcome the present recession situation there may be a requirement in an increase of investment and aggregate demand of consumer spending by escalating efficiency of MFIs.
Purpose
The goal of this research is to look at how urban microfinance affects livelihood transformation in terms of poverty reduction, living standards, social well-being, empowerment and entrepreneurship.
Design/methodology/approach
This paper analyses the role of urban microfinance towards livelihood with special reference to Western Uttar Pradesh. Primary data were collected from 321 respondents who are users of a microfinance programme using a standardised questionnaire. The data were collected using a stratified random sampling technique, and the data were analysed using structural equation modelling.
Findings
Urban microfinance has a considerable impact on poverty reduction, the standard of living, social well-being, empowerment and entrepreneurship in the urban poor, according to the findings.
Research limitations/implications
The fact that the majority of the borrowers were uneducated was the most significant barrier to them filling out the questionnaire. Their anxiety was the most significant psychological obstacle to successfully answering the questions, and it took time. As a result, it is urged that proper counselling be conducted before the poor borrowers fill out the questionnaire.
Practical implications
The current study highlights the factors that lead to the utilisation of microfinance services. This research will aid MFIs in selecting the appropriate products and services for the urban poor. The results of this study will aid them in understanding and meeting the expectations of microfinance CEOs.
Originality/value
This is a first study conducted in Northern zone of India measuring the roles urban microfinance institutions (MFIs) in uplifting the livelihood of urban poor.
This paper analyses, the current level, pattern of access to finance for India's rural poor and examines some of the key microfinance approaches in India, taking a close look at the most dominant among these, the Self Help Group (SHG) Bank Linkage initiative. The analysis in the paper draws heavily on a poor people from Karnataka. For examining the effectiveness and awareness of microfinance in people author undertake one survey through Bangalore District. To study the impact and participation by people in microfinance, authors have considered two local banks and four nationalized banks from Bangalore. For study considered local banks such as Bangalore District Central CoOperative Bank and People bank. Other nationalized banks like ICICI, Axis Bank, Bank of Baroda and Canara bank. Here major findings women are more participated in Self Help Group and the small-scale industries are taking advantage of microfinance. By comparing local & nationalized bank, found that most of the people prefer local banks than nationalized bank. This study evidence that microfinance is reaching the core poor is very limited. This paper also reviews impact of microfinance on Poverty and The Millennium Development Goals
Sri Lanka being a developing country, its poverty can be identified as a serious issue for the development of the country. Poverty can be identified as a spatial characteristic in Sri Lanka which can be seen in the high poverty rates in several areas as the result of disparities of natural and physical resources distribution and, geographical disadvantages. Microfinance has been identified as a significant tool for eradicating poverty in many Asian countries after the 1990s. Sri Lanka also launched several microfinance programs to reduce poverty in the country. Despite the availability of microfinance in Sri Lanka, very few studies have been carried out; therefore, only limited knowledge of the empirical and theoretical impacts of the various microfinance elements on poverty alleviation is available. This study is an attempt to remedy this paucity of knowledge. Primary data were gathered through a Likert scale questionnaire that was distributed among 497 borrowers of the Samurdhi microfinance program. This sample was chosen from five districts of Sri Lanka. Structural Equation Modeling was used for testing the hypotheses. The findings of the study revealed that microcredit was the most significant element of microfinance for alleviating spatial poverty in Sri Lanka. Nonfinancial Services and Insurance Services also had a positive impact on spatial poverty alleviation. Micro Savings and Social Intermediation Services did not have a notable positive impact on spatial poverty alleviation in Sri Lanka. The findings of this study enhance the existing knowledge of microfinance, providing conceptual and empirical contributions. This study could substantially contribute to the government by offering it deeper insight into its programs. Therefore, policymakers and regulators will be able to introduce better tools for eradicating poverty, based on this new knowledge.
The aim of this paper is to identify the drivers that could increase the financial integration of microfinance institutions with commercial banks. Importantly, financial integration ensures the sustainable growth of microfinance institutions through the provision of more financial resources, if needed. To identify these drivers, we used a panel dataset of 953 microfinance institutions (MFIs) from the MIX market dataset and country-level data from the World Bank for the 2003-2016 period. We applied a panel quantile approach with nonadditive fixed effects. Our results reveal that an increase in financial development slows the financial integration of MFIs. However, considering the transitory aspect of financial integration by each quantile, it appears that financial development positively impacts the financial integration of MFIs. The impact of financial development increases as the financial integration level increases. Similar results show a positive link between agency costs and financial integration. More financial interconnections with commercial banks justify the appearance of high agency costs due to an increased interest of commercial banks. There is a significant and negative link between the profitability of MFIs and their financial integration. Moreover, the results reveal that financial integration is a significant determinant of mission drift occurrence in client portfolios.
In this paper, using data for the Bist 100 index, we investigate the presence of
nonlinearities by employing several nonlinearity tests. The BDS and Runs
tests were first applied to the series to show an initial indication of
nonlinearity. The findings for the BDS and Runs test of randomness were
followed by other sets of direct nonlinearity tests developed by White (1989)
and Terasvirta (1993); Keenan (1985) and Tsay (1986). Also, the TAR test is
employed as a final test to confirm the existence of nonlinearity in the Turkish
stock exchange market. From the results of the nonlinearity test, it is
concluded that the Bist 100 index is characterised by the presence of
nonlinearities and cycles. This finding is in contrast with the efficient Market
Hypothesis implying that the Turkish stock exchange market is inefficient.
Using the Smooth Transition Autoregressive (STAR) model for quarterly data
from 1981Q1 to 2016Q4, this paper analysed the relationship between real
exchange rate and domestic consumption in Nigeria. Findings show that
domestic consumption determines the regime shift in the real exchange rate
suggesting that the relationship between real exchange rate and domestic
consumption follows a nonlinear process with clearly distinct regimes. The
lagged exchange rate deviation is shown to have significant linear effect on
the current exchange rate deviation. On the other hand, results indicate that
current foreign consumption has a positive but insignificant impact on the
exchange rate deviation in the linear part of the model. In the nonlinear part
of the model, evidence of a significant negative relationship between real
exchange rate and domestic consumption is found, thus contradicting the
proposition by standard International Business Cycle Model. The results also
showed evidence of no linear granger causality between the variables. On the
other hand, the Nonlinear Granger causality test result shows evidence of a
bi-directional nonlinear causality between real exchange rate and domestic
consumption in Nigeria. Therefore, the study concludes that the relationship
between real exchange rate and domestic consumption is indeed nonlinear,
and that relative consumption in home and foreign countries determines real
exchange rate dynamics. Therefore, this study recommends that fiscal and
monetary authorities should develop policies that will help strengthen domestic production which would further reduce import component in
domestic consumption.
Innovation is the utilization of information to viable prerequisites. Green developments envelop different parts of innovation, which assist us with diminishing the human effect on Earth and make methods of realistic development. Social equality, economic practicality, and manageability are the key boundaries for green developments. Today, Earth is hurtling toward the tipping point at which we cannot repair the harms we have caused. Our current activities are pulling the world toward a natural failure, which would make devastation unavoidable. Green developments are a methodology for saving Earth. Green innovation uses sustainable resources that never run out in new and innovative ways. Green nanotechnology that incorporates eco-friendly designs and scientific principles is one of the most recent types of innovations. One of the significant variables for natural contamination is the removal of waste. Green innovations can handle that too. It can successfully change consumption and creation such that it does not hurt the planet and we can make improvements toward environmental friendliness. Among the potential areas where these manifestations and developments can originate from are environmentally friendly energy sources, natural agriculture, eco-accommodating materials, green structure developments, and the assemblage of related items and materials to help green businesses develop. Other than different types of green innovations, the energy field primarily relies on sun-based energy and nonrenewable energy sources. These have no adverse impacts on the planet and will not recharge. A group of people yet to come could profit from them without hurting the planet. This chapter discusses types of green innovations and the advantages that they provide.
Risk Assessment Strategies and Performance of Beverage Distribution Channels
This paper assesses to what extent, and in what ways, mobile money has affected the financial inclusion of women in Nairobi. Women in Kenya have limited property rights and continue to require approval from their husbands or male family members to conduct financial activities. Besides, most women are concentrated in the informal economy, which has exacerbated their level of financial exclusion since they struggle to provide the documentation that financial institutions require, thus making them more dependent on informal finance. This paper demonstrates how mobile money has significantly decreased the proportion of women in Nairobi excluded from using financial services. Drawing upon survey work conducted by the author across eight areas of Nairobi, this research reveals how mobile money has enabled women to benefit from instant remittance and payment services, and has offered a means of storing money safely, which is an attribute particularly valued by younger women and those with lower levels of educational attainment and income. Although mobile money does not address many of the structural drivers of gendered financial inequality, it has improved levels of financial inclusion by increasing women’s access to various financial channels from which they were previously excluded.
The purpose of this study was to explore and discuss the impact of village savings and loan associations (VSLAs) on socio-economic changes among women and resilience against vulnerability. The study employed a descriptive research design, and household-survey methods were used to obtain data from two districts: Chiradzulu Tradition Authority Maoni and Blantyre Rural Traditional Authority Kapeni. The multi-stage sampling method was used to select the samples. The sample size was 70 ( n = 70) women from VSLA groups, and the data obtained were analysed using ‘Statistical Package for the Social Sciences’ (SPSS). The findings of the study show the positive contributions of VSLAs towards women, such as an increase in the economic and social level of members. Despite these positive results, it was found that VSLA members have no access to loans from external organisations or banks, and there is also a lack of training among the VSLA members.
The study examined the impact of microfinance on the lives of the poor in Zimbabwe. The purpose of the study was to observe that what role micro credit plays in Zimbabwe on living standards, empowerment and poverty alleviation in poor women. The study was conducted in two branches of Thrive Microfinance that are in Harare and Chitungwiza. The research was based on questionnaires which were distributed to the clients of both branches of Thrive Microfinance. The sample size for this paper was 60 respondents who were on different loan cycles from the two branches and 20 respondents from the control group. The questionnaire and interview questions designed were in relation to the secondary objectives of the research which are to examine the extent to which microfinance institutions are alleviating poverty in poor women, assessing the support by microfinance to small and medium enterprises operated by women, support of microfinance in empowering women and recommendations to various stakeholders concerned based on the drawn conclusions. Overall we can say that training and education, nutrition and adequate food, accommodation, income and savings are important factors of poverty reduction. The results that have been analyzed with microfinance permit the following conclusions: almost all the clients reported an increase in their incomes which has improved their standard of living, have been able to pay for their medical bills and can feed their families, can cope with future crises using their savings, have been empowered economically and their positions in the family as well as in the society. All the research results were stemming from the improvements that these small loans brought to the SMEs operated by women. From the results of the study, microfinance is proving to be a successful tool for poverty alleviation but however, strict regulations have to be put in place to achieve their intended mission. Suggestion for further studies include efforts that MFIs can employ to instill a savings culture, maintaining savings balances and repayments performances of the microfinance customers. Moreover, there is a need to assess the effectiveness of microfinance development package schemes in the
The Grameen Bank is a specialized financial institution in Bangladesh that was established to provide credit to the rural poor for the purpose of improving their economic conditions with the hypothesis that if the poor are supplied with working capital they can generate productive self-employment without external assistance. Loans from the Grameen Bank are used primarily for undertaking noncrop activities. The loan repayment performance is excellent. Only 0.5 percent of loans to 975 borrowers surveyed were overdue beyond one year, and overdue weekly installments (before the expiration of the one-year repayment period) were only 3.3 percent of the total amount borrowed. The Grameen Bank concept of credit without collateral should work in other countries with widespread poverty and underemployment. But elements like taking the bank to the people and intensive interaction of bank staff with borrowers may be inappropriate and highly expensive for sparsely settled areas with underdeveloped transport systems. For such environments, an appropriate delivery mechanism has to be worked out.
Providing microcredit to the poor has become an important antipoverty scheme in many countries. Microcredit helps the poor become self-employed and thus generates income and reduces poverty. In Bangladesh, these programs reach about five million poor households. But microcredit programs are just one of many ways of reducing poverty. Are these programs cost-effective? This book addresses the question, drawing on the experiences of the well-known microcredit programs of Bangladesh's Grameen Bank, the Rural Development-12 project, and the Bangladesh Rural Advancement Committee. It examines the cost-effectiveness of microcredit programs vis-a-vis other antipoverty programs, such as Food-for-Work. Does the gender of program participants matter? This book uses extensive household survey data to address how the gender of participants affects the impact of microcredit programs.
"At first, my family members did not count me worthy to be called when there was a problem or decision-making, but now through SAT I am numbered among human beings." --Margaret Asare, a microfinance client of Sinapi Aba Trust in Ghana Microfinance is now a proven strategy for reaching poor women. The Microcredit Summit Campaign reports that 14.2 million of the world's poorest women now have access to financial services—accounting for nearly 74% of the 19.3 million poorest served by microfinance. Yet women in Eastern Europe and the Near East lag far behind their sisters in the rest of the world, with 54% and 27% of services1 respectively. And throughout the industry there is still a schism between larger individual loans, which are more often for men, and smaller group loans, which predominately serve women. Further, microfinance institutions often lack women in governance, management and operations, meaning that women's voices and perspectives are not always incorporated into the design and implementation of products and services. There are good reasons to target women. Gender equality turns out to be good for everybody. The World Bank reports that societies that discriminate on the basis of gender have greater poverty, slower economic growth, weaker governance, and a lower standard of living.2 Women are poorer and more disadvantaged than men. UNDP's oft- quoted 1995 Human Development Report found that 70% of the 1.3 billion people living on less than $1 a day are women. Studies in Latin America, and elsewhere, show that men typically contribute 50 to 68% of their salaries to the collective household fund, whereas women "tend to keep nothing back for themselves."3 Because "women contribute decisively to the well-being of their families,"4 investing in women brings about a multiplier effect. Finally, every microfinance institution has stories of women who not only are better off economically as a result of access to financial services, but who are empowered as well. Simply getting cash into the hands of women (by way of working capital) can lead to increased self-esteem, control and empowerment by helping them achieve greater economic independence and security, which in turn gives them the chance to contribute financially to their households and communities. Yet while cash-in-hand can have these impacts, it doesn't always. Empowerment is about change, choice and power. It is a process of change by which individuals and groups with little or no power gain the power and ability to make choices that affect their lives. The ability of a woman to transform her life through access to financial services
This paper presents findings from a study of Grameen Bank and the Bangladesh Rural Advancement Committee (BRAC), two programs that provide credit to poor rural women in Bangladesh. The programs were found to have significant effects on eight different dimensions of women's empowerment. The authors use a combination of sample survey and case study data to argue that the success of Grameen Bank, is particular, in empowering women is due both to its strong, central focus on credit, and its skillful use of rules and rituals to make the loan program function.
Credit is often the missing link for low-income families that try to make a living by operating small microenterprises. At the same time, the presumption that lending to the poor is very risky, the costs of operation are high, and the low repayment rates for such loans limit bankers’ willingness to extend credit to the poor. This article, however reports on the results of a microcredit program in Indonesia which suggests that when agencies, government and non-government, in a developing country make credit available to low income women, they can reduce the costs of delivery, greatly increase repayment rates, and substantially improve the well-being of poor families. Other studies also suggest that such credit tends to increase women’s participation in decision making, reduces fertility, substantially improves household nutrition and raises aspirations for children’s education. Our case study cofirms these results.
Assessment of the poverty level of microfinance clients is important for both practitioners and donors. For practitioners, increased understanding of the target market and whether it is being reached can help in the design of financial services better suited to the needs of different groups of clients. For donors seeking to ensure the most effective use of their scarce resources for combating poverty, poverty assessment is used to assist in making decisions on resource allocation. While there is much evidence that microfinance can be a critical input towards the achievement of the Millennium Development Goals and the reduction of poverty (Littlefield et al. 2003), the impacts of microfinance are not automatic. To achieve significant directs impacts on poverty it is essential that Microfinance Organisations (MFOs) reach poor and very poor clients, and therefore measurement of poverty outreach becomes an important proxy indicator for the success of microfinance in achieving impacts on poverty. This paper is aimed at donors, policymakers and practitioners interested in the mechanisms by which the poverty level of microfinance clients can be assessed. It is primarily a review of the CGAP Poverty Assessment Tool (PAT), and highlights the potential applications for the tool, issues to consider in its use, and possible further steps in the development of the tool. It goes on to consider the broader issue of poverty assessment in microfinance, and proposes an important additional use for the PAT in validating and improving the credibility of low-cost practitioner assessment and monitoring tools.
This article presents findings of research addressing the question of how women's status affects fertility. The effects on contraceptive use of women's participation in rural credit programs and on their status or level of empowerment were examined. A woman's level of empowerment is defined here as a function of her relative physical mobility, economic security, ability to make various purchases on her own, freedom from domination and violence within her family, political and legal awareness, and participation in public protests and political campaigning. The main finding is that participation in both of the credit programs studied, those of Grameen Bank and Bangladesh Rural Advancement Committee (BRAC), is positively associated with women's level of empowerment. A positive effect on contraceptive use is discernible among both participants and nonparticipants in Grameen Bank villages. Participation in BRAC does not appear to affect contraceptive use.
The impact of participation in group-based credit programs, by gender of participant, on the health status of children by gender in rural Bangladesh is investigated. These credit programs are well suited to studies of how gender-specific resources alter intra-household allocations because they induce differential participation by gender. Women's credit is found to have a large and statistically significant impact on two of three measures of the healthiness of both boy and girl children. Credit provided to men has no statistically significant impact and the null hypothesis of equal credit effects by gender of participant is rejected. Copyright 2003 By The Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association
Microfinance Program Clients and Impact: An Assessment of Zambuko Trust
- Carolyn Barnes
Carolyn Barnes, Microfinance Program Clients and Impact: An Assessment of Zambuko Trust,
Zimbabwe, USAID-AIMS paper (Washington, D.C.: 2001).
Managing Resources, Activities, and Risk in Urban India: The Impact of SEWA Bank
- Martha A Chen
- Donald Snodgrass
Martha A. Chen and Donald Snodgrass, Managing Resources, Activities, and Risk in Urban India: The
Impact of SEWA Bank (Washington, D.C.: AIMS, 2001).
Do Poverty Alleviation Programmes Reduce Inequity in Health: Lessons from Bangladesh
- A M R Chowdhury
- A Bhuiya
A.M.R. Chowdhury and A. Bhuiya, "Do Poverty Alleviation Programmes Reduce Inequity in Health:
Lessons from Bangladesh," in Poverty Inequity and Health, ed. D. Leon and G. Walt (Oxford: Oxford
University Press, 2001).
Analysis of the Effects of Microfinance on Poverty Reduction (prepared by RESULTS Canada for the Canadian International Development Agency
- Barbara Mknelly
- Christopher Dunford
Barbara MkNelly and Christopher Dunford, Impact of Credit with Education on Mothers and Their
Young Children's Nutrition: Lower Pra Rural Bank Credit with Education in Ghana, Freedom from Hunger
Research Paper No. 4 (Davis: Calif.: Freedom from Hunger, 1998), as reported in Jonathan Morduch and
Barbara Haley, Analysis of the Effects of Microfinance on Poverty Reduction (prepared by RESULTS
Canada for the Canadian International Development Agency, November 2001).
Fertility Transition, Contraceptice Use, and Abortion in Rural Bangladesh: The Case of Matlab
- Mizanur Rahman
- Julie Davanzo
- Abdur Razzaque
Mizanur Rahman, Julie DaVanzo, and Abdur Razzaque, Fertility Transition, Contraceptice Use, and
Abortion in Rural Bangladesh: The Case of Matlab (Washington, D.C: Futures Group International,
February 2000).
Microfinance and Poverty Alleviation: Case Studies from Asia and the Pacific
- Joe Remenyi
- Benjamin Quinones
Remenyi, Joe, and Benjamin Quinones Jr., eds. Microfinance and Poverty Alleviation:
Case Studies from Asia and the Pacific. New York: Pinter Publishers, Ltd., June 2000:
79, 131-34; 253-64.
Fighting Poverty with Microcredit
- Khandker
Khandker, Fighting Poverty with Microcredit, 1998.
Program Clients and Impact: An Assessment of Zambuko Trust
- Microfinance Barnes
Barnes, Microfinance Program Clients and Impact: An Assessment of Zambuko Trust, Zimbabwe
(2001).
Do Poverty Alleviation Programmes Reduce Inequity in Health
- Bhuiya Chowdhury
Chowdhury and Bhuiya, "Do Poverty Alleviation Programmes Reduce Inequity in Health," 2001
Credit Programs for the Poor and the Health Status of Children in Rural Bangladesh
- M Mark
- Pitt
Mark M. Pitt, et al, "Credit Programs for the Poor and the Health Status of Children in Rural
Bangladesh," International Economic Review, forthcoming.