Microfinancing
Microfinancing
A topic that not many of us have heard about before is actually a really big issue in developing countries as well as places where people are in poverty. It has to do with giving loans to people who want to possibly start a small business but do not have the funds or collateral to apply for a real loan. This topic is known as microfinancing and can really impact the environment if it is not used effectively. Microfinancing has been around since before the mid 1970 's and has taken off in popularity around the world. In the 1980 's Muhammad Yunus and the Grameen Bank in Bangladesh really put microfinancing on the map with the work that they did. In 2006 Mr. Yunus actually won a Nobel Peace prize for his outstanding work with microfinance. (NYTimes). Microfinancing helps out a lot of people in developing countries and that will help them get out of poverty. Microfinancing is the practice of extending small loans to individual borrowers who have traditionally lacked access to credit. It has become one of the most popular anti-poverty strategies in the world and is still gaining popularity as we continue to talk about it today. You really see a lot of microfinancing happening in the areas of India, Africa, Latin America, and some parts of Asia. This is because these regions/countries are not very developed and the people there are trying to improve their lives and get out if poverty. This is a good thing because if the world can improve its way of life in these third world countries then I feel the world will be a better place. Microfinancing has a few ways that it actually operates and is not too complex but it is simple enough to where any person could understand it. When the bank gives out the loan it is not just giving the loan to just one person. Instead what they do is that they group people together so the money that they lend out will be more guaranteed. If one person cannot repay the loan then the bank holds the others responsible. The
A topic that not many of us have heard about before is actually a really big issue in developing countries as well as places where people are in poverty. It has to do with giving loans to people who want to possibly start a small business but do not have the funds or collateral to apply for a real loan. This topic is known as microfinancing and can really impact the environment if it is not used effectively. Microfinancing has been around since before the mid 1970 's and has taken off in popularity around the world. In the 1980 's Muhammad Yunus and the Grameen Bank in Bangladesh really put microfinancing on the map with the work that they did. In 2006 Mr. Yunus actually won a Nobel Peace prize for his outstanding work with microfinance. (NYTimes). Microfinancing helps out a lot of people in developing countries and that will help them get out of poverty. Microfinancing is the practice of extending small loans to individual borrowers who have traditionally lacked access to credit. It has become one of the most popular anti-poverty strategies in the world and is still gaining popularity as we continue to talk about it today. You really see a lot of microfinancing happening in the areas of India, Africa, Latin America, and some parts of Asia. This is because these regions/countries are not very developed and the people there are trying to improve their lives and get out if poverty. This is a good thing because if the world can improve its way of life in these third world countries then I feel the world will be a better place. Microfinancing has a few ways that it actually operates and is not too complex but it is simple enough to where any person could understand it. When the bank gives out the loan it is not just giving the loan to just one person. Instead what they do is that they group people together so the money that they lend out will be more guaranteed. If one person cannot repay the loan then the bank holds the others responsible. The
Bibliography: "Microfinance." The New York Times, 10 Oct. 2012. Web. 10 Oct. 2012. . "What Is Microfinance?" What Is Microfinance? Web. 10 Oct. 2012. . "What Is Microfinance?" Microfinance Gateway. Web. 10 Oct. 2012. .