Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation Smith, Thurman, Harper, a.
These intermediaries operated in an unregulated or poorly monitored markets; they charge whatever they can get away with.
For now, charitable and commercialized MFIs co-exist. Also, through micro enterprises and access to 27 Karim Lamia,De stif i g i ro- reditCultural D a i s 28 Harvey David,Brief histor of eo li eralisO ford Page 13 of 21 Keerti Rajagopalan Extended Project Qualification Essay private financing, economic institutions are seen to be moving under private sectors, which is a neo-liberal view.
Celebrity supporters include Bono, the Clintons and the Queen of Spain.
Many repay 29 Overseas Development Institute, www. In contrast, nonprofit institutions take a more philanthropic bent with any profits, using them to expand the number of people it helps or create more programs.
Furthermore, microfinance industry in India has witnessed a fast-paced growth in last two decades. Teach a man to fish, and you feed him for life.
This prompted the formation of self help groups for equally disadvantaged groups in order to pool resources for the mutual benefit of the group members.