Micro-Finance <ul>Class Break-Down I. Micro-Finance II. Micro-Credit III. Global Agents for Change IV. Business Scenario V. In-Class Blogging </ul>
Why Micro-finance? <ul><li>According to the UNDP Human Development Report (HDR) 2005 only 9 countries (4% of the world’s population) have reduced the wealth gap between rich and poor, whilst 80% of the world’s population have recorded an increase in wealth inequality.
The 2.5 billion people living on less than $2 a day – 40% of the world’s population – receive only 5% of global income, while 54% of global income goes to the richest 10% of the world’s population.'
The HDR 2005 cites the unjust global trade regime as a primary cause in increasing global inequality.
According to the International Forum on Globalization, 52 of the top 100 wealthiest economic entities are corporations as opposed to countries. </li></ul>
Common Types of Micro-Finance <ul><li>1) Member-Owned Organizations
Success Story <ul><li>Sam Daley-Harris, Microcredit Summit Campaign Director
"Several years ago two friends of mine were speaking with a group of 40 clients at a micro-bank in South Asia. Impact the bank had had on the husbands of then on-borrowers; not their husbands, but the husbands of women who are not with the bank. The clients said, 'Before we took our loans, our husbands were day-labourers, working for others whenever they could find work. When we took our loans our husbands stopped being day-labourers and worked with us - bicycle rickshaw, husking rice, growing garlic on leased land. This caused a shortage of day-labourers in this area, so the husbands of the non-borrowers who were day-laborers-their wages went up.' That was the impact of this bank on the husbands of the non-borrowers." </li></ul>
Caveats of Micro-Credit <ul><li>Saving-up vs. saving down