In recent years, the concept of poverty has shifted away from a narrow definition—caloric intake based poverty—to a much broader one that places emphasis on a variety of factors, such as health, education, income, and powerlessness. Most researchers agree that eliminating poverty requires a holistic approach that is attentive to promoting pro-poor growth, creating opportunities for employment, ensuring that the fruits of growth reach impoverished communities, and protecting vulnerable segments of the impoverished population. This study looks the role of microcredits, which has received increasing attention as a means to combat poverty. The advent of neoliberalism led to advances in autonomous markets, commodification, market-led growth, and the dissolution of the Keynesian welfare state. Microcredit growing out of a neoliberal shift plays a powerful role as an instrument to fight poverty, especially in the age government and state failure, entrepreneurial expansion and self-employment income-earing opportunities. Microcredit programs are of great interest to governments, non-governmental organization, and banks because of their potential for reducing poverty. Critics of the microcredit movement argue that microcredit does little besides replacing existing informal credit arrangements to fund subsistence activity, which they view as having little or no prospect of growth. They argue that support of microcredit may over anticipate its benefits, such as the alleviation of poverty and female empowerment. This study assesses the effectiveness of microcredit combined asset building as a pro-growth approach to reduce poverty sustainably in Kinshasa. The recent crises of over-indebtedness in several markets and Kinshasa have fueled growing concern that microcredit may be getting borrowers into trouble. However, my study findings show that assets, specifically microcredit, can stem the poverty cycle and better enable individuals to "stand on their own two feet"socio-economically if combined with other innovative programs. This study uses the test of significance to assess the effectiveness microcredit integrated asset building. / Ph. D.

In this thesis the aim has been to analyse changes and continuity in the governing of economic behaviour in small-scale credit schemes in colonial Nyasaland and independent Malawi from 1930 until 2010. Furthermore, how the effects of history in terms of how colonial and post-colonial development discourses and practices have been rephrased and reused in the early 21st century are discussed. The study focuses on the teaching and fostering of borrowers’ economic behaviour in order to reach increased living standards. The genealogical approach to the history of small-scale credit has made it possible to analyse a selection of colonial and post-colonial small-scale credit programs and microcredit organisations operating in the early 21st century. To analyse the governing of economic behaviour in the small-scale credit schemes, three aspects of the Foucauldian concept of governmentality are used: problematics of government, political rationality and governmentality technologies. The findings of the thesis, which are based on interviews, unofficial and official written sources, show that the genealogy of governing economic behaviour through small-scale credit schemes has varied over time depending on perceptions of the ideal actor’s economic behaviour. Despite this, some continuities have been identified. For example, there is a continuity in the problematics of government, the analysis of the perceived development problem and how small-scale credit was to be a solution. The study indicates that a linear and universal financial history is used in theory and practice and consequently that the local Malawian national history of small-scale credit has been ignored. Despite different political rationalities during the period there is a continuity in funding small-scale credit with external money, and the government’s interest in small-scale credit has also persisted. One effect of history is that small-scale credit seems to be politically efficient, but economically inefficient. In the colonial period and in more recent times, it seems like governmentality technologies regarding lending are quite ad hoc, for example regarding the supervision and distributions of loans. One effect of history is subordinated positions for borrowers and a governing towards economic responsibility, rather than entrepreneurship.

Thesis advisor: Hiroshi Nakazato / Microcredit has been praised and criticized for its reputation as the solution to global poverty—helping the poor help themselves. The economists have focused on the impossibility of a sustainable microfinance system, whereas other scholars have commended the social advancements that MFIs have supported, especially in relation to gender inequality. This conceptual thesis specifically studies the effects of microfinance institutions on women’s empowerment—first defining ‘empowerment’ and then observing it in various case studies. My research supports the conclusion that microfinance is a useful economic aid and more importantly it spearheads the fight for women’s rights. / Thesis (BA) — Boston College, 2011. / Submitted to: Boston College. College of Arts and Sciences. / Discipline: International Studies Honors Program. / Discipline: International Studies.

Universidade Federal do Cearà / Esse trabalho à um estudo sobre o atual modelo de atuaÃÃo das Sociedades de crÃdito ao Microempreendedor (SCM). Particularmente, à mostrado o desenvolvimento do marco legal dessas instituiÃÃes, seus limites de atuaÃÃo e as dificuldades encontradas para o pleno desenvolvimento dessa categoria privada de instituiÃÃo de microcrÃdito que tem atuaÃÃo em diversos estados brasileiros. Diante disso foi explorado o dilema entre seus objetivos sociais, o atendimento aos microempreendedores sem acesso ao sistema financeiro formal e seus objetivos econÃmicos e a remuneraÃÃo do capital dos sÃcios dessas empresas. Para tanto, o trabalho està dividido em trÃs capÃtulos, alÃm da introduÃÃo e da conclusÃo final. O primeiro capÃtulo aborda o porquà e como surgiram as instituiÃÃes de microcrÃdito, em conexÃo com as particularidades no atendimento do pÃblico alvo nesse mercado. O segundo capÃtulo expÃe os princÃpios que regem a atuaÃÃo das entidades de microcrÃdito, bem como as dificuldades e soluÃÃes encontradas com a experiÃncia e evoluÃÃo das mesmas. No terceiro capÃtulo sÃo analisadas as SCMs especificamente. No estudo à apresentado o atual marco regulatÃrio, uma anÃlise econÃmico-financeira dessas empresas e sÃo feitos comparativos com outros modelos de entidades jurÃdicas que atuam no mercado brasileiro de microfinanÃas. AlÃm disso, testes estatÃsticos permitiram concluir que as SCMs nÃo se apresentam em um ambiente econÃmico que leve à sustentabilidade e expansÃo de suas atividades. Por fim, sÃo feitas sugestÃes de algumas mudanÃas para que haja maiores oportunidades de crescimento e desenvolvimento das SCMs. / This work is a study about the current model performance of the Micro Entrepreneur Societies ( SCM ). Particularly, it is shown the civil mark development of these institutions, their performance limits and difficulties found for the full development of this private category of microcredit institution that act in many of Brazilian states. Up to that it is explored the dilemma between their social goals, the assistance to microentrepreneurs without access to the formal financial system, and your economic goals, the partners capital remuneration of these companies. For so much, the work is broken in three chapters, besides the introduction and of the final conclusion. The first chapter boards the reason why and as arose microcredit institutions in connection with particularities in the publicâs target assistance in this market. Second chapter exposes which ones are the principles that govern microcredit entities performance and which ones are the difficulties and solutions found with the experience and evolution of those. In the third chapter are analyzed SCMs specifically. In the study It is introduced the current civil mark, it is done a economic and financial analysis of this companies and a comparative with other juridical entities models that act in microfinances Brazilian marked. Yet, statistics tests conclude that the SCMs are in a economic environment that not allows their sustainability and growth. Finally, it is suggested some changes so that has larger growth opportunities and SCMs development.

<p>Microcredit provides small loans to poor people and small enterprises. It is the best solution of removing poverty. This research provides an overview of the role and performance of microcredit in Pakistan. The major objective of the study is to show the microfinance sector performance and impact of the microcredit on the different poverty levels. This study is based on both quantitative and qualitative methods in order to answer the thesis questions. The result of the study was that microcredit helps in the poverty alleviation of different categories of poor people and has the positive effects on their living standards. It was found that there is a high interest rate on micro loans because of the administrative cost. We discovered that there are three types of organizations that provide services of microfinance in Pakistan. The government takes interest and supports the microfinance sector and of their main initiative is microfinance ordinance 2001. It was observed that there is improvement in the microfinance sector in the recent years in terms of investments, active borrowers, branches and personnel.</p>

Microcredit provides small loans to poor people and small enterprises. It is the best solution of removing poverty. This research provides an overview of the role and performance of microcredit in Pakistan. The major objective of the study is to show the microfinance sector performance and impact of the microcredit on the different poverty levels. This study is based on both quantitative and qualitative methods in order to answer the thesis questions. The result of the study was that microcredit helps in the poverty alleviation of different categories of poor people and has the positive effects on their living standards. It was found that there is a high interest rate on micro loans because of the administrative cost. We discovered that there are three types of organizations that provide services of microfinance in Pakistan. The government takes interest and supports the microfinance sector and of their main initiative is microfinance ordinance 2001. It was observed that there is improvement in the microfinance sector in the recent years in terms of investments, active borrowers, branches and personnel.

Gender inequality and poverty are two serious problems for developing countries where the majority of women have been victims of the cultural, socio-economic, political, and environmental impacts of development. The gender dimension of poverty focuses on the dilemma of women, their multiple roles as women and their roles in alleviating poverty. The literature on women and poverty abounds with numerous cases and other evidence of women’s vulnerability and heavier economic and socio-cultural burden of poverty. Women are also known to be discriminated against in terms of economic safety, lack of basic needs support, work access, opportunities, and payment. Despite these factors, women have a greater sense of responsibility and are more accountable towards sustaining programs designed to alleviate poverty among the poor. In Indonesia, as elsewhere in the world, micro-credit is being used as a major vehicle which serves women for improving their wellbeing, reduce vulnerability, and also as a starter point to empower women. Using findings drawn from a study on the Indonesian Government policies and the implementation of two particular micro-credit schemes, namely Tabungan Kesejahteraan Rakyat (Takesra) and Kredit Keluarga Sejahtera (Kukesra). This thesis explores the two basic and especially important issues of poverty and women empowerment. Firstly, it views poverty within gender and sustainability perspectives, and secondly, evaluates the impacts of the micro-credit schemes under Takesra and Kukesra. The thesis argues that poverty reduction among women is consistent with the concept of gender and development which is particularly reinforced within the sustainability agenda. The conditions to do so, however, have internal and external constraints strongly manifested in the operation of the micro-credit schemes. The evidence from the empirical research conducted in three districts of Central Java, Indonesia - namely Brebes, Purbalingga and Cilacap - shows the first type of constraints to refer to weaknesses of the schemes themselves, such as incomplete and misdirected indicators for success, small size of available loans and long duration of repayment terms. The second refers to the socio-economic aspects of sustainability, including the economic conditions which do not allow market access to poor women and cultural manipulations which result in overburdens to women. Both diminish the role of the schemes as a poverty solution. From the analysis and lessons learned from best practices in other countries, it is suggested that the Indonesian Government policies need to be refocuses in order to deal with the internal and external constraints and allow for an advance to be achieved in poverty alleviation and women empowering. The Takesra and Kukesra schemes in a revised form based on the developed new model for micro-credit delivery, should continue to play a role in providing credit to poor women to encourage skill development and capacity building, support the process of women empowerment and potentially contribute towards a more sustainable society.

The main purpose of this study is not only to prove the impact of loan interest rates on the poor in the case of Tigray, Northern Ethiopia but also to recommend improvements to address the negative effects of interest rates that could benefit both the borrowers and the lenders. Combinations of quantitative and qualitative analytical tools were used; the data were collected through administration of a questionnaire to a sample of 471 respondents from three regulated MCIs, one cooperative enterprise, and one unregulated NGO. Results were analysed by using SPSS software. A multi-dimensional approach with respect to demand for credit, return on loan, loan repayment, savings, indebtedness, multiple loans, graduation process, and wellbeing was used and results were triangulated to obtain a full picture. The study has concluded that the interest rate in general, primarily charged by DECSI, eroded the envisaged profits that poor borrowers expected to gain. This caused diversified negative impacts on the poor, those who were entrusted to MCIs. It thus brings into question the efficacy of the social responsibility of MCIs. From a simple analysis, it is found that there is a trade-off between servicing the poor with a low loan cost and securing MCIs operational self-sufficiency. Furthermore, the poor are not only sensitive to the loan interest rate but also to the saving interest rate. Therefore, not only access but also the cost of credit and savings matters to the poor. Moreover, the study identified a positive relationship between the financial capacity of MCIs and lending interest rates. Institutions with higher profitability tend to offer lower interest rates on micro loans but not when commercialization is an issue. The study grasped that socially oriented and responsible MCIs can reach the poorest without compromising financial performances, a “win-win proposition”. Finally, the study offers comprehensive recommendations on policy and practice that address potential changes to how MCIs redesign their loan and savings interest rate. The recommendations also address how MCIs develop graduation processes and self-revolving credit scheme frameworks that strengthen pro-poor microcredit modality. Additionally, the study provides a way forward in the design of future microcredit that could help MCIs deliver on their core social mandate. / Development Studies / D. Litt. et Phil (Development Studies)

Philosophiae Doctor - PhD / Eritrea, a relatively young African nation, is one of the least developed countries in the world. Its economy is predominantly dependent on subsistence agriculture and the level and magnitude of poverty is more severe in rural areas. The formal financial sector is underdeveloped, state-owned, far from being competitive, and limited in terms of depth and breadth as measured by the relevant financial sector development indicators. To address the limitations of the formal banking sector and to help fill the financing gap, and improve the general livelihood of those at the lower income group, the Government of Eritrea introduced a Saving and Microcredit Programme (SMCP) in 1996 for which no scientific study measuring its impact has been done at the household level. The study was conducted in rural areas to find out whether the SMCP as a microfinance institution has improved the livelihood of its clients. The specific objectives of the study were to describe the characteristic feature of rural livelihoods in terms of the resources owned, the strategies pursued and outcomes achieved, identify and examine the determinants of household participation in the SMCP and finally assess the impact of participation in SMCP on household livelihoods. The study employed a quasi-experimental cross-sectional survey design involving structured and semi-structured questionnaire administered to 500 respondents of whom 200 represented the treated group and 300 the controlled group. Logit regression was employed to identify the factors that determine household participation in the SMCP. In regard to this, age of the client household, household size, marital status, level of education of the client household, the size of first round loan, entrepreneurial experience, type of loan product offered by the institution, ownership of livestock and microenterprise, the perception of the client on involuntary deposits, the occurrence of a negative events (shock) to the household and village access to electricity were found to have statistically significant effect on the household‟s probability to participate in the SMCP. Furthermore, the marginal effects were also computed to evaluate the contribution of each of these factors to the likelihood of participating in the SMCP. A propensity score matching model was applied to assess the impact of the programme on the livelihood of its clients. The findings reveal that participation in the SMCP has a significantly higher average treatment effect on the treated (ATT) households. Profits generated from off-farm and small microenterprises, the values of household and livestock assets, food and non-food consumption expenditures and nutrition quality, were found to be on average higher for the treated households than for the controlled households. Therefore, it could be argued that the provision of micro financial resources has significant positive effects on household livelihood outcomes. The study has important social and economic policy implication regarding the role of finance in rural development.

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