| • Science | • People | • Locations | • Timeline |
The concept of microcredit was first developed by Muhammad Yunus, a U.S.-educated professor of economics who first got into the business of fighting poverty during a 1974 famine in his homeland of Bangladesh, one of the poorest countries in the world. Yunus discovered that very small loans could make a significant difference in a poor person's ability to survive. His first loan consisted of $27 from his own pocket which he lent to a woman who made bamboo furniture, which she sold to support herself and her family. However, traditional banks were not interested in making tiny loans to poor people, who were considered poor repayment risks.
In 1976, Yunus founded the Grameen Bank to make loans to poor Bangladeshis. Since then the Grameen Bank has issued more than $3 billion in loans to some 2.4 million borrowers. To ensure repayment, the bank uses a system of "solidarity groups": small informal groups which apply together for loans and whose members act as co-guarantors of repayment and support one another's efforts at economic self-advancement. As it has grown, the Grameen Bank has also developed other systems of alternate credit that serve the poor. In addition to microcredit, it offers housing loans and well as financing for fisheries and irrigation projects, venture capitalVenture capital is a general term to describe financing for startup and early stage businesses as well as businesses in "turn around" situations. Venture capital investments generally are relatively high risk investments, but may offer the potential for a, textileThis article is about the type of fabric. Textile is also a jargon term used by naturists or nudists to describe a person who wears clothes, and also the property that nudity is not allowed, e. in "textile beach", "textile campsite", etc. A textile is anys, and other activities, along with other banking services such as savings.
The success of the Grameen model has inspired similar efforts throughout the developing world and even in industrialized nations including the United States. Many, but not all, microcredit projects also emulate its emphasis on lending specifically to women. More than 94 percent of Grameen loans have gone to women, who suffer disproportionately from poverty and who are more likely than men to devote their earnings to serving the needs of the entire family.
The World BankThe International Bank for Reconstruction and Development (IBRD, in Romance languages BIRD), better known as the World Bank is an international organization created to fight poverty by means of financing states. Its operation is maintained through payment estimates that there are now more than 7,000 microfinance institutions, serving some 16 million poor people in developing countries. In November 20022002 is a common year starting on Tuesday (see link for calendar). 2002 was the first palindromic year since 1991 and the last until 2112. 2002 was also designated: International Year of Ecotourism and Mountains National Science Year in the United Kingdom, more than 2000 delegates from 100 countries gather at a Microcredit Summit in New York City, with the goal of reaching 100 million of the world's poorest families, with credit for self-employment and other financial and business services by the year 20052005 is a common year starting on Saturday (link will take you to calendar). It has been designated: The World Year of Physics The International Year of Microcredit The International Year for Sport and Physical Education The United States Year of Foreign. Support for these goals has come from prominent world leaders and major financial institutions. The Economic and Social Council of the United NationsFlag of the United Nations The United Nations or UN is an international organization made up of states. Almost all countries are members. It was established in San Francisco on October 24, 1945, following the Dumbarton Oaks Conference in Washington, DC, b proclaimed the year 20052005 is a common year starting on Saturday (link will take you to calendar). It has been designated: The World Year of Physics The International Year of Microcredit The International Year for Sport and Physical Education The United States Year of Foreign as the International Year of Microcredit.
The microcredit movement does have critics, who say that some lending programs charge excessive interest rates. Also, there is concern that funding for microcredit programs will be diverted from other needed programs such as health, water projects and education. Credit programs may enable poor people to improve their situation, but they do not eliminate the need for other basic social and infrastructure services.
Some other problems that have been reported with microcredit: