TERM PAPER SUBMITTED TO DR. KIMBERLY LEONARD-KEMPF IN PARTIAL FULFILLMENT FOR RESEARCH DESIGN I develop OF ECONOMIC, POLITICAL AND POLICY SCIENCES POLITICAL ECONOMY AND PUBLIC POLICY
BY SHEHERYAR BANURI
RICHARDSON, TEXAS NOVEMBER 2006
Last Updated: November 27th 2006
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I. Introduction The term Microfinance pertains to the lending of highly little amounts of capital to forgetful entrepreneurs in order to work a mechanism to alleviate poverty by providing the miserable and destitute with resources that ar available to the wealthy, albeit at a littler scale. This particular form of lending has existed in the world for kinda some time, though formalized by Mohammed Yunus in Bangladesh during the 1970s. Yunus win the Nobel Peace prize in 2006 for his efforts in combating poverty and providing resources to the poor via the Grameen Bank and the microfinance model. Historically, microfinance has existed among the poor in various shapes and forms. The most putting green example cited is that of a rotary club, wherein people pool their nest egg into a certain fund e genuinely month, and then are randomly picked (without replacement) to receive the entire fund every year.

This system required, of course, that each member of the club belong to a tightly knit social circle in order to be trusted and thus, allowed to participate. This pooled savings method of financing has been quite favourite in various cultures across the globe. Furthermore, there have existed easy lending institutions extending credit to the poor and vulnerable, though on very strict and often extraordinary terms. Today, microfinance institutions (of which the Grameen Bank is the pioneer, but many an(prenominal) other institutions have also joined the market) allow for both the pooled savings model as well as the itsy-bitsy lending using favorable terms. The concept is simple, loan teeny-weeny funds to the poor (usually under 10 USD) for a small fixed...If you want to get a full essay, order it on our website: Ordercustompaper.com
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