Lending just a little at a time
Microfinance is a topic we have addressed before in these news items and we make no apologies for returning to it again. The articles linked to below include an interview in the Guardian with Muhammad Yunus, the Nobel prize-winning founder of the Grameen Bank which is credited with lifting millions out of poverty with small loans – microfinance. There is also a podcast from Mervyn Davies the Chairman of Standard Chartered Bank Plc.
Microfinance and financial inclusion Times Online podcast (18/0/07)
Microfinance and financial inclusion (transcript for podcast) Times Online (18/0/07)
What’s the big idea? Guardian (16/2/08)
Questions
| 1. | Explain what is meant by ‘microfinancing’. |
| 2. | Discuss the likely effectiveness of microfinancing as a tool for promoting economic development (as opposed to economic growth). |
| 3. | Evaluate two policies other than microfinancing that will help to promote economic development. |