Critical Analysis of Microcredit: False Hopes and Real Possibilities

Critical Analysis of Microcredit: False Hopes and Real Possibilities
Report

Contents
Introduction......................................................................................................................................1
Critical Analysis..............................................................................................................................1
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

Introduction
Making credits accessible for the people who are poor are considered to be a laudable aim. The
tool for fighting with the global poverty is microcredit which is judged by the effectiveness. With
the growing industry, it has been seen that there are different people who are borrowing the
money worldwide from the bank or from the market (Pollin, 2007). They are, thereby,
controlling the provision of banking services to the poor people in the world.
Critical Analysis
As per the analysis, the Grameen Style Initiative focuses on the limited capacity to fight mainly
with the global poverty which is placed in the policy to handle the neoliberalism. The
neoliberalism is considered to be the economic model with Grameen Bank working on
operations focusing on eliminating the inflation rather than job opportunity expansion or cutting
down the government subsidies which include the credit subsidies with support for the domestic
business. It includes the microenterprise with opening the domestic markets to import and handle
the speculative financiers. The policies are mainly used in the developing countries with slow
economic growth and increasing equality where there is no progress in reducing the poverty as
well (Hashim et al., 2015).
To work with the Grameen Model, there are larger policy issues which are set under the
undeniable contributions in bringing the services for finance mainly for the poor people. The
major contribution is about the simple recognition of the credit and other related services of the
bank accounts and the insurance policies which is considered important for the advancement of
the poor and their well-being.