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Have Microfinance replaced commercial banks in rural areas?
Dear all,
It is generally difficult for the poor to get access to credit by conventional means because banks commonly require the security of collateral loans. Micro-finance and micro-insurance schemes are innovative ways of providing the poor with access to capital and thus a way out of poverty. Especially women often lack access to the financial resources necessary to escape poverty and social dependency. Micro-credit schemes can enable women to engage in economic activities and join social networks through which both poverty and social dependency can be overcome.
Tags: commercial banks, microfinance
Views: 8
Replies to This Discussion
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Permalink Reply by Natwijuka Colin Bwempazi on -
I would say this is true in some countries but not all applied in all situations.
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Permalink Reply by Natwijuka Colin Bwempazi on
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Supporting smallholder competitiveness
Of the developing world's 5.5 billion people, 3 billion, representing nearly half of the total world population, live in rural areas. Of these rural inhabitants, an estimated 2.5 billion are in households involved in agriculture, and 1.5 billion are in smallholder households. GDP growth generated by agriculture is as much as four times more effective in benefiting the poorest half of a country's population than growth generated by other sectors. Supporting smallholder competitiveness implies that smallholder farmers will be able to remain competitive in the face of changing market requirements and increased competition from imports and large-scale farming, which can greatly contribute to rural poverty reduction.
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Permalink Reply by Natwijuka Colin Bwempazi on
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Non-governmental development cooperation
The work of non-governmental organizations (NGOs) is an important component of development cooperation. Especially through their enagagement at the grass-roots level, NGOs can serve as agents of change as they often carry out development projects together with their developing country partners
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Permalink Reply by Natwijuka Colin Bwempazi on
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Supporting rural non-farm businesses
While many development strategies recognize the importance of maintaining a robust agricultural sector, they also highlight that employment generation in rural areas must go beyond agriculture in order to reduce rural poverty and stem the increasing flow of migrant rural poor.
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Permalink Reply by Natwijuka Colin Bwempazi on
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Improving agricultural productivity
Agricultural productivity should provide the ability to meet food security and economic development objectives in the face of rapid population growth. Agricultural productivity is declining sharply due to land degradation, which affects to some degree as much as two thirds of the world's agricultural land. Improving agricultural productivity is essential to the sustainable development goal of reducing both poverty and stress on the environment. There is thus an urgent need to invest in agriculture in developing countries, in order to increase food supply and subsistence. Such investments need to foster the establishment of agricultural systems and sustainable management practices that contribute to the mitigation of climate change, promote ecological balance, reduce poverty and hunger, thereby facilitating the achievement of the Millennium Development Goals.
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Permalink Reply by Natwijuka Colin Bwempazi on
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Livestock farming
Livestock farming comprises the use of domesticated animals that produces food, labour or other products such as fibers. Industrial livestock production often causes severe environmental damage, like deforestation and erosion as well as increasing emissions of greenhouse gases. Governments should be urged to create incentives for more environmentally friendly dairy and meat production practices.
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Permalink Reply by Natwijuka Colin Bwempazi on
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Diversifying the agricultural sector
Diversifying the agricultural sector is a key to the conservation of plant genetic resources and the sustainable management of local biodiversity. Intensifying and diversifying the management of food production systems are core standards towards reducing food insecurity.
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Permalink Reply by Natwijuka Colin Bwempazi on
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Some of the reasons why also you have not to go to the bank and prefer the microfinance is that you need
to look at many issues like timing and other resources you incur in securing a loan, but with the case of a microcredit you dont need to do all that in months which is remedy for th clients
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Permalink Reply by Natwijuka Colin Bwempazi on
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Evaluting the poor perfomance of Microfince is generally a mulitisectral issue that cant be discussed in ashalow way but looking at a multidiversion of evidenced circumstances that has completely caused the poor perfomance
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Permalink Reply by Natwijuka Colin Bwempazi on
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Dear all once again,
It has been observed that some commercial banks have failed to establish in rural settings and have hampered the flow of the customers due to the establishment of more microcredit finance institutions.
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Permalink Reply by Natwijuka Colin Bwempazi on
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Is it difficult for the poor to completely lack access to credit?
what do you think?
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Permalink Reply by Natwijuka Colin Bwempazi on
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Hello members,
I wrote this information before the hiking of the prices in Uganda came into effect poor people stormed the city as the cost of living has become more difficult.
Send your comments!
Translation
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