Neoclassical is the most widely taught form of economics in the present world, making it to be the primary take on modern day economics. In a nutshell, neoclassical economics makes an approach to economics that relates supply and demand to an individual’s rationality and his or her ability to maximize utility or profit. Neoclassical economic has also increased the use of mathematical equations in the study of various aspects of the economy. While Economic theory tries to explain how scarce resources are allocated to given and alternative ends with an approach that considers these elements as extra-economic ones. The more conceptual framework of the main schools of economic theory is the Neoclassical economics, Austrian economics, Evolutionary economics and others are based on an insufficient understanding of anthropology and this fact limits their explanatory capacity.
In the understanding of neoclassical economic theory, the basic tools are elaborated under the following assumptions:
(1) The neoclassical individual (consumer and producer) is defined as a given option structure.
(2) All the "means and ends" considered have an equivalent monetary expression. (3) The only channel of communication between individuals is prices.
4) All the social relations and social ambits are considered as market exchange transaction.
Concept of Microcredit and Grameen Bank
Poverty is one of the vital problems of the third world countries, and to elevate poverty microcredit has become the most popular approach to address this undesirable phenomenon. According to Jonathan Murdoch, Chairman of UN Expert Group on Poverty Statistics, "Microcredit stands as one of the most promising and cost-effective tools in the fight against global poverty." Based on three C (character, capacity and capital ) this model, perceived more than a quarter century ago in Bangladesh, is now being pursued around the globe. In spite of this popularity, there is
Bibliography: 1. Hossain, Mahabub (1988): “Credit for the Alleviation of Rural Poverty: The Grameen Bank in Bangladesh.” Washington, D.C.: IFPRI, Research Report No. 65. 2. Morduch, Jonathan and Barbara Haley (2001): “Analysis of the Effects of Microfinance on Poverty Reduction.” NYU working paper. http://www.nyu.edu/wagner/public_html/cgi-bin/workingPapers/wp1014.pdf 4. Yunus, Muhammad. Creating a World Without Poverty. 1st. New York: Public Affairs, 2007. 5. Brue, Stanley L. The Evolution of Economic Thought. 6th. New York: Harcourt College Publisher, 2000. 6. McConnell, Campbell, Stanley Brue, and Tom Barbiero. Microeconomics. 11th Canadian Edition. McGraw-Hill Ryerson, 2007. 7. Olivier Jean Blanchard (1987). Neoclassical Synthesis, “The New Palgrave: A Dictionary of Economics”, v. 3, pp. 634-36.