...Nigeria 6 Negative Impact of MFIs on the country (Nigeria) 10 Conclusion Introduction Since the advent of microfinance institution in Bangladesh in the mid 1970’s, several countries have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them. The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance institution scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. The introduction of microfinance institutions in Nigeria is the inability of Nigerian Deposit Money Banks to provide sufficient financial service to the rural poor. Microfinance institutions have taken up the challenges of the gap created by the Nigerian Deposit Money Banks. Microfinance institutions can be seen as an economic growth method intended to advantage the low income part of a given country like Nigeria, both rural poor and urban poor. This paper theoretically examines the impact of this institutions to Nigeria as a country....
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...This page in: English Poverty Research FEATURED 1 / 3 Financing for Development Post-2015 Financing for Development Post-2015 The international community is working toward a new framework to promote sustainable development for all which will build on achievements to date and address new challenges arising from an evolving and complex landscape. Read More » RECENTLY PUBLISHED IMPLEMENTATION STATUS AND RESULTS REPORT Benin - BJ PRSC 9 Poverty Reduction Support Cdt. : P132786 - Implementation Status Results Report : Sequence 01 MacwilliamDavid CalSep 21, 2014 PUBLICATION Well begun but not yet done : progress and emerging challenges for poverty reduction in Vietnam Kozel ValerieSep 09, 2014 Vietnam has built a remarkable record of economic growth and poverty reduction over the last two decades. Using a poverty line set in the 1990s and since updated, Vietnams poverty rate fell from 58 percent in... POLICY RESEARCH WORKING PAPER Estimating poverty in the absence of consumption data : the case of Liberia Dabalen Andrew, Graham Errol, Himelein Kristen, Mungai RoseSep 01, 2014 In much of the developing world, the demand for high frequency quality household data for poverty monitoring and program design far outstrips the capacity of the statistics bureau to provide such data. In these ... POLICY RESEARCH WORKING PAPER Infrastructure gap in South Asia : inequality of access to infrastructure services Biller Dan, Andres Luis, Dappe Matias HerreraSep 01, 2014 ...
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...Economic Development Table of contents * Introduction * Literature review * Africa’s infrastructure endowment * Ways of financing infrastructure * Impact of Infrastructure on Economic Growth. * Conclusions and recommendations * References Introduction * Generally, a consensus has developed that, under the right circumstances, infrastructure evolution can play a major role in improving growth and equity-and, through those two channels, help to eradicate poverty. * However, in spite of this acknowledged aspects and their importance, sub Saharan Africa “SSA” falls behind other regions in infrastructure services and its quality, and this gap is increasing over time. * This is intensely showed in the energy sector, with around 800 million population, the 48 sub Saharan Africa countries produce all together about as much power as Spain, which has only 5.5% of the population of the SSA countries. * Investment in maintaining the current infrastructure is also lagging behind, leaving many African countries with deteriorated and inefficient infrastructure services; conditionally poor roads, railways, ports and weak information and communication technology services. * The depressing situation of infrastructure deficiencies is also combined with the unpredicted urban growth which resulted in the explosion of informal settlements (slums) all over the African continent (Blinde and mayor, 2001). * Another characteristic...
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...order and piece ▪ Reconstruction of economies ▪ Stable world piece Role: The IMF was intended to play two major roles in the Bretton Woods System: o The fund should discourage aggressive exchange rate behavior by members and help them manage their balance of payments efficiently; o The fund was given resources to lend international reserves to countries with balance of payments difficulties. Purposes/ objectives The purposes of the International Monetary Fund are: • To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems. • To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and...
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...* Multilateral Investment Guarantee Agency (MIGA) * International Centre for Settlement of Investment Disputes (ICSID) International Monetary Fund (IMF) Regional development banks, such as: * African Development Bank (AFDB) * Asian Development Bank (ADB) * Inter-American Development Bank (IADB) * Bank of the South * European Bank for Reconstruction and Development (EBRD) Other regional financial institutions e.g. European Investment Bank (EIB) Export Credit Agencies of individual country governments, such as: 1. US Export Import Bank (EXIM) 2. Japan External Trade Organization Hermes Kreditversicherungs (Germany) INTERNATIONAL FINANCIAL INSTITUTIONS: Their common goal…… * to reduce global poverty and improve people's living conditions and standards; * to support sustainable economic, social and institutional development; and * to promote regional cooperation and integration. WORLD BANK GROUP:...
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...of the gap created by the Nigerian Deposit Money Banks. Microfinance banks can be seen as an economic growth method intended to advantage the low income part of a given country like Nigeria, both rural poor and urban poor. Since the advent of microfinance banking in Bangladesh in the mid 1970’s, several countries have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance banking scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. This paper theoretically examines the impact of this institutions to Nigeria as a country. International Journal of Finance and Accounting Concept of Microfinance Microfinance pertain to the lending of small amount of capital to poor entrepreneurs in order to create a mechanism to alleviate poverty by providing the poor and destitute with resources that are available to the wealthy, alert at a small...
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...$1 trillion by 1985. By 2000, their debt was about $2 trillion. The debts of HIPC countries increased from $60 billion in 1980 to $190 billion by 1990. Even with relief programs like the HIPC Initiative, 8 countries under the Initiative experienced worsening debt indicators even after reaching their completion points. The consequences of developing countries’ inability to exit from debt payments go beyond the financial level. In addition to economies being hurt, the peoples of developing countries will also feel the affects. The United Nations established the Millennium Development Goals in 2000 that pledged to halve income poverty between 1990 and 2015, but countries like those in Sub-Saharan Africa will most likely not meet this goal. The problems delaying debt relief result from numerous actors. Creditors need to provide additional financing and fulfil their commitments to debtor countries. The Bretton Woods institutions need to speedily and effectively implement the enhanced HIPC. Some heavily indebted countries still have to take policy measures to become eligible for the HIPC Initiative and reach the decision point. All parties are responsible and must make greater efforts to reduce the debt burdens in order to...
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...Overview The IMF works to foster global growth and economic stability. It provides policy advice and financing to members in economic difficulties and also works with developing nations to help them achieve macroeconomic stability and reduce poverty. What we do The IMF promotes international monetary cooperation and exchange rate stability, facilitates the balanced growth of international trade, and provides resources to help members in balance of payments difficulties or to assist with poverty reduction. Membership The IMF has 187 member countries. It is a specialized agency of the United Nations but has its own charter, governing structure, and finances. Its members are represented through a quota system broadly based on their relative size in the global economy. How we do it Through its economic surveillance, the IMF keeps track of the economic health of its member countries, alerting them to risks on the horizon and providing policy advice. It also lends to countries in difficulty, and provides technical assistance and training to help countries improve economic management. This work is backed by IMF research and statistics. Collaborating with others The IMF works with other international organizations to promote growth and poverty reduction. It also interacts with think tanks, civil society, and the media on a daily basis. Organization & Finances The IMF has a management team and 17 departments that carry out its country, policy, analytical, and technical...
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...Assessing the Effectiveness of Microfinance Loans from NBC in Reduction of Poverty in Kinondoni District – Dar es Salaam. LIST OF ABBREVIATIONS. ACB - Akiba Commercial Bank CGAP - Consultative Group to Assist the poor CRDB - Cooperative and Development Bank FFI - Formal Financial Institution FINCA - Foundation for International Community Assiatance GDP - Gross Domestic Product NBC - National Bank of Commerce NGO - Non Governmental Organisation NMB - National Microfinance Bank NMFP - National Microfinance policy PFSs - Private Financial Sectors PRIDE - Promotion of Rural Initiatives and Development Enterprise SACCOS - Saving and Credit Cooperative Society SPSS - Statistical Package for Social Science URT - United Republic of Tanzania ABSTRACT The Ojective of the research was to assess the eeffectiveness/contribution of PFSs in reduction of poverty in Kinondoni District Dar es Salaam Tanzania. The research was conducted at NBC branches. The Branches to which the Reseacrh was conducted were Kinondoni Branch, Ubungo Branch, Mlimani City Branch, UDSM Branch and Tegeta Branche. Data were collected through interview and research questionnaires and were analyzed by using quantitative approach. The research study revealed that Tanzania...
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...unpredictable and largely unpreventable tragedy. Other tragedies are less visible, monotonously predictable and readily preventable. Every hour more than 1,200 children die away from the glare of media attention. This is equivalent to three tsunamis a month, every month, hitting the world’s most vulnerable citizens—its children. The causes of death will vary, but the overwhelming majority can be traced to a single pathology: poverty. Unlike the tsunami, that pathology is preventable. With today’s technology, financial resources and accumulated knowledge, the world has the capacity to overcome extreme deprivation. Yet as an international community we allow poverty to destroy lives on a scale that dwarfs the impact of the tsunami. Five years ago, at the start of the new millennium, the world’s governments united to make a remarkable promise to the victims of global poverty. Meeting at the United Nations, they signed the Millennium Declaration—a solemn pledge “to free our fellow men, women and children from the abject and dehumanizing conditions of extreme poverty”. The declaration provides a bold vision rooted in a shared commitment to universal...
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...SME growth and domestic economic development has a direct relationship through increased output, value add and profits. The GDP contribution per SME is the difference between the return on capital and the cost of capital. Returns on capital are often high, with different datasets showing ranges up to 20-30% a month (for the most capital-strained firms), which is considerably higher than typical interest rates. The GDP contribution can be illustrated on a micro-level by looking at the additional economic activity generated by a hypothetical loan. This example gives a simplified view on how a SME owner who invested his loan into the purchase of imported goods increases consumption and GDP. This example does not cover the significant multiplier effect in the wider economy, through the increased economic activity of employees and suppliers. SME growth also influences GDP indirectly, through increased innovation and macro-economic flexibility of the overall economy. Every year new SMEs enter the market, representing 5 to 20% of the existing number of firms. Smaller firms are often the most dynamic and innovative, and can be a test ground for new business ideas. Although...
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...CONTEXT This paper studies the application of Balanced Scorecard (BSC) as a powerful measurement and assessment system, in lending/micro financing institutions. Adopting the balanced scorecard (BSC) model, this exploratory study investigates the critical performance measures that lending/micro-financing institutions in the Philippines need to emphasize in their performance reporting to drive high performance. The proposed model can assist the lending institutions in assessing organizational performance, making it highly applicable for managers. Reviewing the existing literature, the paper also provides an implementation guide for BSC in the Philippines perspective. Eventually, the performance indicators for measurement purposes of the introduced case study are proposed. Keywords: Lending/ Micro financing Institutions, MFIs, Financial Services, Balanced Scorecard, BSC, Organizational Performance Assessment, performance reporting, Philippines. 1. Introduction In many developing countries, microfinance plays a vital role in providing the poor (i.e. micro-entrepreneurs, small farmers, fishermen) with access to credit and helping them improve their lives by encouraging entrepreneurial activity (Arch, 2005; Bhatt & Tang, 2011; Khandker, 1996; Llanto, 2004). It has also proven to be “a potent tool for poverty reduction by helping the poor increase their income, smooth consumption, build assets, and reduce their vulnerabilities in times of contingencies and economic...
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...DEVELOPMENT FINANCE & ITS ROLE IN RURAL AREAS TO ALLEVIATE POVERTY 2010 M. MOBASHAR ALI & RANA RASHID REHMAN STATE BANK OF PAKISTAN-BANKING SERVICES CORPORATION SIALKOT 9/3/2010 Contents INTRODUCTION 4 LITRATURE REVIEW 4 REVIEW OF POVERTY IN PAKISTAN 6 SBP INITIATIVES IN TO PROMOTE DEVELOPMENT FINANCE 8 ESTABLISHMENT OF DEVELOPMENT FINANCE GROUP 8 ESTABLISHMENT OF AGRICULTURE FINANCE DIVISION 9 PUBLIC AWARENESS PROGRAMS 10 DEVELOPMENT FINANCE PROGRAMS CURRENTLY IN OPERATION 11 NONGOVERNMENTAL ORGANIZATIONS (NGOs) 11 RURAL SUPPORT PROGRAM (RSP) 11 AGA KHAN RURAL SUPPORT PROGRAM (AKRSP) 11 SARHAD RURAL SUPPORT PROGRAM 12 NATIONAL RURAL SUPPORT PROGRAM (NRSP) 12 ROLE IN POVERTY ALLEVIATION 12 TRANSMISSION MECHANISM OF FINANCE TO POVERTY ALLEVIATION 14 DEVELOPMENT FINANCE SUCCESS STORIES 15 CONCLUSION 16 BIBLIOGRAPHY 17 Figure 1 8 Figure 2 10 Figure 3 10 Figure 4 13 Table 1 7 Table 2 7 Table 3 9 Table 4 10 Table 5 13 INTRODUCTION Development Finance is the offering of financial services to the entrepreneurial poor that contributes finally to the economic growth. Although the most notable of these services is the provision of credit, many other offerings are a part of Development Finance including credit for business activities and credit for emergency and for the fulfillment of life cycle needs. Many Development Financial Institutions (DFIs) give finance for...
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...Evaluation of St.Lucia Poverty Reduction Strategy [Type the document subtitle] 5/2/2011 808011470 807004688 808010033 807001237 807004522 Table of contents -Profile of Country……………………………………………………….3 ~Economic ~Social - Poverty Profile .........................................................................................9 ~Trends ~Segments most affected - Detail of Strategy ………………………………………………………16 ~Evaluation of Past Strategy ~Sustainability - Recommendations and Findings……………………………………….23 Saint Lucia Country Profile The Caribbean island of St. Lucia is made up of a population of approximately 170,000 with an annual growth rate of 0.74%. The demographics of the population is made up of 90% persons of African descent, 6% mixed, 3% East Indian and 1% Europeans. Their religions include Roman Catholic, Seven Day Adventists and other various Protestant denominations. The official language of St. Lucia is English although French patois is common across the country. The literacy rate among adults is a high percentage of 94.8%. In terms of health, St Lucia has a infant mortality rate of 12/1000 and the life expectancy of men is 73 years and that of women is 76 years. Unemployment rates are approximately 15.7%. Their style of governance is that of Westminster- style parliamentary democracy having gained their independence on February 22nd, 1979. In terms of the economy, St. Lucia has a...
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...Net Plans in Bangladesh and their poverty impact at a macroeconomic level. The main objective of the study is to look into the overall impact of the existing safety net programs on poverty reduction in Bangladesh. The paper also looks into the impact of the existing safety net programs on reducing inequality. | Social Safety Nets In Bangladesh This report looks at the overall structure of Social Security Net Plans in Bangladesh and their poverty impact at a macroeconomic level. The main objective of the study is to look into the overall impact of the existing safety net programs on poverty reduction in Bangladesh. The paper also looks into the impact of the existing safety net programs on reducing inequality. Institute of Business Administration, University of Dhaka Table of Contents 1. Executive Summary i 2. Introduction 1 2.1. The Poverty Situation of Bangladesh 1 2.2. Social Safety Nets 1 3. Social Safety Nets of Bangladesh 2 3.1. Structure of Social Safety Nets 4 3.2. Trends in Social Safety Nets 7 4. Social Safety Nets and Poverty 9 4.1. Impact Assessment of Social Safety Nets on the Poverty of Bangladesh 9 4.2. Inequality Effect of Social Safety Nets 9 5. Conclusion 10 6. Recommendations 10 7. Bibliography 12 1. Executive Summary Social safety net is a measure taken by the government in order to prevent the vulnerable section of its population to fall beyond a certain level of poverty. Social safety net programs (SSNPs)...
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