Module 13 Flashcards
how does microfinance (inc microcredit) alleviate poverty, improve food security
access to MF –> invest in future–> increase income, education, health –> get out of poverty
what is microfinance? microcredit?
microcredit: small loans given to ppl in poverty, with assumption that poor lack capital to invest in small business and being able to would improve success
microfinance: broader term, encompasses microcredit and other banking services
describe Grameen Bank
- No collateral, no lawyers involved
- Provide financial service to poorest people
- He thinks credit is human right
- 97% of borrowers are women
- Loan to beggars without repayment plans
Over 100 million dollars in small loans averaging around 200 dollars. “That money changes lives”
ex. of how impact of microcredit has been assessed, what we can learn from those.
microfinance on food security: does not impact meal quantity, but quality. increase in meat/fish consumption. improvements in diet observed if microcredit client was female, not if male
recent research found that longer microcredit participation associated with lower food insecurity, higher HG
microcredit: mixed impacts on income, positive impact on savings. some ppl made poorer. negative impact on children education
Seems like microfinance initiatives are more beneficial for women
Need to evaluate interventions, target who will use to grow business
Potential strategy for household food secuirty
Positive and negative results depending on context
changes in health, wealth, hunger recent decades
Increased access to clean water, sanitation facilities, decreased open defecation, etc., death rates in children
Health and wealth have been increasing. Contributions to billions of ppl lives. Currently, this trend is stalled. First time in decades that poverty will be increasing in 2030
hunger:
Now there is at least a stabilization, maybe even upswing (this was before COVID…)
Its due to climate and conflict and their displacement, increased vulnerability
Conflict/climate: large, powerful factors
Layered on pandemic to which there has been immediate response
pandemic +conflict +climate are causing upswing
