This presentation provides a description of the content related to microfinance, including case studies on its success and failure. It explores the impact on rural development, women's participation, and the benefits and negative impacts of microfinance.
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Running Head:MICROFINANCE MICROFINANCE Name of the student Name of the University Author Note
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1MICROFINANCE Microfinance refers to the initiative to provide financial services to those who do not have access to loans, savings accounts, fund transfers as well as insurance. This is the condition of most of the poor people e in poor countries. There were several attempts by the government of the poor people to provide financial stability to the citizens with the help of microfinance. The purpose of this study is to provide description of the content represented through this power point presentation taking into account case studies showing the success and failure of microfinance. (Block 2012). The second slide gives a brief definition of microfinance. According to the first slide, microfinance refers to the initiative to provide financial services like loans savings insurance and also fund transfers to the entrepreneurs, small and medium sized businesses, poor people who are unable to access traditional banking services. The third slide gives the glimpses of the content. The fourth slide of the presentation provides an overview of the Grameen Bank with reference to the case study of Bangladesh. It talks about the birth of the Grameen Banks in Bangladesh, in the year 1983. This slide also focuses on the aims of Grameen banks. This slide also reveals amazing facts about Gameen banks like-the bank was owned by the borrowers themselves most of whom are women, the ownership of the borrowers was about 94% as the rest of the 6% was owned by the government and so on (Miled and Rejeb 2015). After that this slide focuses on the years of the growth of Grameen banks starting from the increase in the number of its members, employees and branches, amounts of loans distributed and repaid(Grameen.com, 2019). The fifth slide throws light on theImpact on rural development and participation of women in it. It highlights other positive effects of the establishment of Grameen Bank like- employment and development of a sense of dignity as well as responsibility among the poor
2MICROFINANCE people themselves to reduce poverty, enhance in the agricultural productivity due to the provision of micro credit to the farmers, rise in the per-capita income, improvement in housing, improvement in nutrition due to the increase in the agricultural productivity(Sarker 2001). .The sixth slide elaborates the reasons behind the success of Grameen Bank in Bangladesh. In this context this slide specifies four principle s of Grameen Bank- discipline, unity, courage as well as hardwork. Along with this, this slide also focuses on some of the key decisions of Grameen Bank-poverty reduction, farming, family planning, sanitation, earn to pay for education, put a stop to child marriage, helping each other. This slide also highlights the decentralise structure of Grameen bank, its management culture as well as institutionalization(Kiva 2019). Seventh, eighth and ninth slides highlight the benefits of microfinance which are- betterment of families, education opportunity for the children, focus on the overlooked section of the society, offering better repayment rate as compared to the traditional banks, creation of the opportunity for real jobs and future investment, encouraging people to save more, leading to sustainable development(Block 2012). Tenth slide highlights the negative impact of microfinance. The eleventh slide represents a case study ofSouth Africa,showcasing the failures of micro-finance. This slide shows how the people of Sourth Africa ended up repaying microloan provided by Grameen bank, by selling their household assets or by borrowing from friends and family and creating another loan (Ayres 2019). This led to more distressed situation as poor people of South Africa became poorer when they have to repay the loans they had to take to repay another loan taken from Grameen bank (Hickel 2019). Also the employment opportunities in South Africa
3MICROFINANCE decreases due to the intervention of Grameen bank. Hence the intervention of Grameen bank in South Africa is termed as “Anti-development intervention”(Ayres 2019). The twelfth slide focuses on the problems generated by micro-credit I South Africa. In thiscontextthisslideshowshowincomegeneratingmicro-enterprisesreceiveda substantially little amount of loans, how the financial resources are channelized to businesses which are not productive and sustainable, how poor people became confined inside a micro- debt-trap and so on (Bateman 2013). According to this slide, due to the shift of resources to unproductive business, and increase in the amount of debts of the poor, hyper competition ariseswhichincreasessocialtension.Thisslidealsohighlightstheworstimpactof microfinance as well as Grameen bank in the mining districts of South Africa like Rustenburg (Arp 2018). The thirteenth slide is the concluding slide. This slide states that microfinance is supported especially in the rural areas of developing countries. It also talks about the importance of design and implement all the schemes of Microfinance carefully so that the success of Grameen Bank can be ensured.
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4MICROFINANCE References Arp, 1. (2018). Does microfinance really alleviate poverty? The 34-billion-dollar question. Retrievedfromhttp://theconversation.com/does-microfinance-really-alleviate-poverty-the- 34-billion-dollar-question-87475 Ayres, C. (2019). 12 Benefits of Microfinance in Developing Countries. Retrieved from https://vittana.org/12-benefits-of-microfinance-in-developing-countries Bateman, M. (2013, Nov 19). Microcredit has been a disaster for the poorest in South Africa. TheGuardian.Retrievedfromhttps://www.theguardian.com/global-development- professionals-network/2013/nov/19/microcredit-south-africa-loans-disaster Block, W. (2012). Micro‐finance: a critique.Humanomics, 28(2), pp.92-117. Grameen.com (2019).Introduction | Grameen Bank. [online] Grameen.com. Available at: http://www.grameen.com/introduction/ [Accessed 12 Apr. 2019]. Hickel,J.(2019).Themicrofinancedelusion:whoreallywins?.Retrievedfrom https://www.theguardian.com/global-development-professionals-network/2015/jun/10/the- microfinance-delusion-who-really-wins Kiva (2019).Verify Connection before proceeding to Kiva. [online] Kiva. Available at: http://www.kiva.org/ [Accessed 12 Apr. 2019]. Miled, K., &Rejeb, J. (2015). Microfinance and Poverty Reduction: A Review and Synthesis of Empirical Evidence.Procedia - Social AndBehavioral Sciences,195, 705-712. doi: 10.1016/j.sbspro.2015.06.339 Sarker, A.E., 2001. The secrets of success; the Grameen Bank experience in Bangladesh.