Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

This is not actually micro or macro the class is called Economics of developing countries - Essay Example

Comments (0) Cite this document
The services offered are in the form of loans and savings. The principle behind microfinance is that low income earning…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
This is not actually micro or macro the class is called Economics of developing countries
Read TextPreview

Extract of sample "This is not actually micro or macro the class is called Economics of developing countries"

ECONOMICS OF DEVELOPING COUNTRIES Microfinance refers to financial services that are rendered to low income earners or toward individuals that have minimal access to banking services. The services offered are in the form of loans and savings. The principle behind microfinance is that low income earning individuals are able to uplift themselves from poverty when financial services have been made accessible to them. Despite this, microfinance does not necessarily lead to poverty alleviation since it has its limitations in some quarters. However, numerous studies have concluded that micro-finance has solved the problem of poverty in many developing countries. This is because, poor people around the world seldom access financial services through the formal sector, and hence, they are forced to venture into informal financial dealings which are in the form of micro-finance services (Gulli 50).
The history of Micro-finance dates back to hundreds of years. Credit corporations and lending unions have been in existence for many centuries. However, the pioneer of modern micro-finance is Dr. Mohammad Yunus, who in the 1970s started experimenting with the idea by using women in rural villages of Bangladesh. Yunus began lending affordable loans to the women, and they would later return at an interest. The women benefited from the loans because they were able to begin community projects that generated income for them. The profits enabled them to pay back the loans. Later in 1983, Yunus founded Grameen Bank, one of the world’s greatest micro-finance banks currently. Yunus won the Nobel Peace Prize in 2006 due to his efforts of improving the lives of poor women in Bangladesh. Innovation in micro-finance has continued over the years, and currently, it has been established that micro-finance solves economic problems of people in developing countries. Current estimates by the World Bank reveal that approximately 160 million people that live in developing countries benefit from micro-finance (Armendariz 67).
Does Microfinance work? Limitations and positives
Comprehensive studies have demonstrated that micro-finance indeed works. Research has shown that micro-finance continues to assist poor individuals in developing countries to meet basic requirements, and protects them from any potential risks. These financial services have enabled low income earners to improve their quality of life and enhance their enterprise stability. Most Micro-finance Institutions (MFIs) target women, for example, Grameen Bank targets Bangladeshi poor women. This is of benefit as it contributes to women empowerment, and ensures that women in developing countries have equal opportunities as men in life. This enhances gender equality, and further improves household well-being (Gulli 58).
Furthermore, with access to micro-finance, poor people are able to cope up with sudden enhanced expenses that may come as a result of natural calamities and loss of business assets. This is because, access to micro-finance loans enables people to be more resilient to challenges that emerge in day to day activities. Empirical studies reveal that micro-finance has indeed assisted people in developing countries. In Bangladesh, studies reveal that incomes of members of Grameen Bank are higher by 43% as compared to those who do not take micro-finance loans in poor villages. In El Salvador, the incomes of FINCA clients that take part in micro-finance were estimated to increase by 145% in 2010. In Indonesia, 90% of borrowers from the Band Rakyat Indonesia graduate out of poverty every year. This statistics reveal that, indeed, micro-finance solves the problem of poverty in most developing countries. The major limitation is that micro-finance measures take a longer time for the effects to be realized, hence, it is a long term venture that cannot alleviate poverty on a short-term basis. Another limitation is that, micro-finance is inapplicable in situations whereby there are marked challenges to loan repayment. For example, areas that have a high incidence of disease and natural calamities are unsuitable for MFIs. This is because; microfinance is effective when clients are able to repay the loans under the stipulated terms (Gulli 76).
Microfinance in India
The microfinance industry in India continues to grow year by year. A recent study by Intellecap reveals that 60 MFIs have about 10 million clients. The loans by these institutions are aimed at ensuring that impoverished women in India are empowered and are able to start their own businesses so that long-term financial independence is achieved. Most of these women live with less than 1 US dollar daily; hence, micro-finance has enabled them to enhance their earnings.
Works Cited
Beatriz Armendáriz, Marc Labie. The Handbook of Microfinance. New York: World Scientific,
Hege Gulli, Inter-American Development Bank. Sustainable Development Dept. Microenterprise
Unit. Microfinance and poverty: questioning the conventional wisdom. New York: IDB,
2009. Read More
Cite this document
  • APA
  • MLA
(“This is not actually micro or macro the class is called Economics of Essay”, n.d.)
This is not actually micro or macro the class is called Economics of Essay. Retrieved from
(This Is Not Actually Micro or Macro the Class Is Called Economics of Essay)
This Is Not Actually Micro or Macro the Class Is Called Economics of Essay.
“This Is Not Actually Micro or Macro the Class Is Called Economics of Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF This is not actually micro or macro the class is called Economics of developing countries

This is not actually Macro & Micro The class is called Economics of Developing Countries

... No: Part 1. Development is an increase in GDP per capita. True. Economic efficiencyor Economic growth is relating to increase in productivity. Economic growth derives from producing more goods and services by applying the similar inputs i.e. investment, energy, materials and labor. The best example of labor and land production in agriculture can be seen in the Green Revolution. The Green Revolution that spreads 40s to 70s has seen the new grain techniques that lead to significant production across the world. To achieve the desire to maintain standard of living, the country should focus on a) level of goods and services b) individuals purchase. The growth in population along with increase in economic growth, increase in GDP...
9 Pages(2250 words)Essay

Macro & Micro Economics

...? Macro & Micro economics Table of Contents Money Growth and Inflation 3 Article Content- Federal Reserve Bank’s Evans Says Guidance on Tightening Can Control Inflation 3 Reference of article to theory- Monetary Growth and Inflation 4 Reference 7 Money Growth and Inflation Article Content- Federal Reserve Bank’s Evans Says Guidance on Tightening Can Control Inflation Charles Evans, who is the President of the Federal Reserve Bank of Chicago, has put forth that the Central Bank would be able to curb inflation to a considerable extent as the economic growth continues through such changes which will raise the rate of interest. He is of the opinion that the considerable amount of accommodation which is required for maintaining the funds rate...
4 Pages(1000 words)Essay

Macro &Micro Economics

...? Macro & Micro Economics The development of the of Economics as a branch of social science has been developed on the assumptions of rationality as one of its fundamentals. And stressing upon this assumption coupled with the evidences of the behavior of the agents (rational human beings engaged in the domain of social interaction), economics has been able to develop various stylized theoretical models for analyzing those interacting patterns and generating optimal solutions for the attainment of general welfare of the people. One of the significant areas of economics especially is macroeconomics which is a branch of economics that deals with the problems of a particular country or economic region comprised of several economic agents acting...
8 Pages(2000 words)Essay

Macro & Micro economics (Economics)

...?Macro & Micro Economics (Economics) Table of Contents (A) Explain why perfectly competitive markets lead to an allocative efficient allocation of resources in the long run. 3 (B) Explain why free markets will under-produce goods with positive externalities (e.g. vaccinations against infectious diseases). Briefly suggest how government might intervene to correct this under-provision? 5 (C) The Consumer Price Index (CPI) is the official measure of inflation in the United Kingdom. Why might CPI not be an accurate measure of the costs of living for any given individual consumer? 6 (E) If an economy is initially operating at its potential output, explain the short and long- run consequences of a permanent increase in government spending. 9...
5 Pages(1250 words)Essay

Micro and Macro Economics

... Micro and Macro economics Oil boom brings scar of workers in small towns http Chapter 1 terms and definitions: Opportunity cost Opportunity cost is the forgone alternative cost for another action. Scarcity Scarcity is limitation in supply. Scarcity is when a commodity is hardly there. For instance, land is a scarce factor of production (Mankiw, pp.55) Relevance In this article it is found out that the government and other traditional sectors are running short of labor. The scarcity has been brought about by the natural gas and oil boom. The laborers are forgoing other business jobs and offers for the oil jobs. In this case, there is scarcity in labor...
8 Pages(2000 words)Assignment

Macro & Micro economics

...? Macro & Micro economics Introduction The Chinese economy has been growing at a significantly high rate since the last three decades. It is the second-largest economy in the world and is one among the fastest growing economies (Chiang and Standing, 2013). Last year (2012), in the fourth quarter, the Chinese economy grew at the rate of 7.9% (BBC, 2013). However, the growth rate slipped immediately in the next year. This fluctuation in the growth rate of the economy has been a cause of concern for the government of China. It prompted the government to make policy changes that would boost up economic activities in the country. This paper has been presented with the purpose of representing an analytical study of an article named “China May...
7 Pages(1750 words)Essay

Macro & Micro economics

...? Macro & Micro economics Contents Contents 2 Influence of macro and micro-environmental factors 3 Segmentation variables to define a market segment 4 Different types of pricing strategy 4 Decision making for a high involvement consumer purchase 5 Characteristics of services and use of extended 7Ps in marketing mix 5 References 8 Influence of macro and micro-environmental factors The micro environmental factors are those factors which could be directly controlled by the firm. The micro environmental factors include product, price, place and promotions of products in contest to the market. The macro environmental factors are those factors which are not directly under the control of the firm. These factors include the political, economic...
5 Pages(1250 words)Essay


...? MACRO AND MICRO ECONOMICS By: Presented (Due Command/ Centrally-planned Economy Introduction A command economy one in which the coordination of economic activities (supply and price) are controlled through administrative means rather than market mechanisms. The economic agents particularly the production organizations operate as directed by the governments in place; the government decides which goods are produced the amount, as well as distribution. Advantages of Command Economy 1. Facilitates the realization of an economy’s long term goals and objectives hence rapid development Central to the command economy is “a central planning authority” (Fernando 2011, p.115). In this kind of economy, the state establishes development goals...
5 Pages(1250 words)Research Paper

Micro/Macro Economics

...MICRO/MACRO ECONOMICS How might a firm in monopolistic competition increase its monopoly power? A firm in monopolistic competition does not have monopoly power as such but can develop a certain degree of dominance in the market that is almost a monopoly. This can happen when a particular firm develops a product that distinguishes it from the competitors and thus attract most buyers. The product can be protected by a patent which the company can utilize for many year before it becomes available to the rest of the industry. Kodak and xerox dominated the market for many years in this manner. Also, a company can build brand value or brand equity of its product through superior quality, reliability, and distinctive services that others...
2 Pages(500 words)Essay

Micro and Macro Economics

...Micro and Macro Economics Q Diagram A Diagram B In diagram A demand curve D1 and D1’are inelastic (as evident from the slope) and diagram Bhas inelastic demand curves with the same intercept. It is clear that P1’ is higher than P1 which shows that elastic demand curve leads to a higher wage and supply curve can be kept constant at QL’ through negotiation and hence it is assumed to be perfectly inelastic under an extreme situation. Q. 2 Pure Union Wage Advantage: [(New Union Wage – Old Union Wage) / Old Union Wage]*100 [(20-15)/15]*100= 33.33% Spillover Effect: Spillover effect is refers to the decrease in the wages of the non-union company. Generally after any organization increase wages then simultaneous they used to reduce...
4 Pages(1000 words)Assignment

International Business Economics

According to Adam Smith, the absolute advantage would be realised as long as the cost of production differed from between countries, one or both countries would gain by trading. An example to illustrate this is a situation where we have two countries A and B which produce two similar goods X and Y. The figures show labour cost in hours for producing one unit of a good

David Ricardo formulated the theory of comparative advantage and argued that even if one country is more productive in both lines of production it would be still profitable to trade. Country A is more productive in both lines of production but it will still be profitable to trade with country B, this is shown by first stating that country A is more advanta...
6 Pages(1500 words)Assignment

Economics or Ethics

Several CEOs in America have in coalition with top managers deviated from the norms of corporate governance and caused immeasurable woes to the stakeholders. Using their power and ego they chased the wealth for personal gains without any concern for the shareholders or other stakeholders of the company. Enron, the world’s largest energy trader at one time, had to file bankruptcy under Chapter 11 when about 5000 workers lost their job (Bhattacharya, 2004). Arthur Anderson, one of the big five auditing firms was charged to have colluded with the management to misappropriate funds and project a picture different from the reality. Income was inflated and then all concerned papers were destroyed. The leadership at Enron was conce...
6 Pages(1500 words)Assignment

Managerial Economics and Business Environment

Once the above said subject matter is clearly sorted out, the next emphasis would be on the concepts like the opportunity costing, incremental principle, marginal principle, discounting principle, the principle of time perspective, and calculation of economic profit as the guidelines to the scope of managerial economics. (Surender. V, 2008).
To start with, we consider a firm for which different processes have to be carried to achieve its objectives of profit maximization (assuming that all the organizations work with the view to maximize profits). If firms from different sectors are identified simultaneously, then the working of the economy as a whole could also be analyzed which in turn is useful in the decision-making proce...
15 Pages(3750 words)Assignment

Developing Professional Practice Portfolio

I work in a very busy outpatient department that includes many different clinic settings.  Most recently, the oral surgery, maxillo-facial surgery, and plastic surgery departments have become part of our directorate as a result of reorganization with in the trust. Although I have always considered myself to be a competent, confident professional, I found working in this reorganized department very stressful. The unit seemed to be very poorly organized with staff shortages and inadequate facilities. I was most surprised to discover that there were no documented records for patient wound care services provided in the clinic. I found this latter situation to be unacceptable from a professional standpoint. Some of the patients in...
6 Pages(1500 words)Essay

The Globalization Policies in Different Countries

Most of the countries are still confused about the extent up to which foreign participation can be allowed. Everybody has the opinion that international trade can help the development of the economy and infrastructure in a country. Critiques of foreign participation argue that the big foreign retailers will exploit the wealth of a country and the small scale industries of a country will be destroyed by allowing the entry of foreign business tycoons and MNC’s. It is interesting to analyze the pros and cons of international trade.
From the above light green curve, it is clear that international trade has increased gradually from 1994 till 1997. In 1998 through international trade in this region had decreased a bit, it aga...
6 Pages(1500 words)Coursework

Developing a Research Base for Intravenous Peripheral Cannula Resites

...Context of the Paper To begin with, the of the paper is very much apt for the content. Although the could have come up with a more direct title, the title “Developing a Research base for Intravenous Peripheral cannula re-sites. A randomized controlled trial” captures the essence of the paper and what the authors aim to address. They, however, could have made it more direct to the point by maybe saying that the study is about a comparison between 3 day cannula re-sites and cannula re-sites as dictated by clinical condition. Nonetheless, the chosen t title is suitable enough to briefly inform the reader of the topic of the research. Two hypotheses were tested in this paper. There are two groups that were compared in the paper...
6 Pages(1500 words)Case Study

Obstacles Facing the Developing World in becoming Developed

The obstacles facing the developing countries in becoming developed is mostly of their own making. However, this does not give the developed nations the right to subjugate the rights and interests of the underdeveloped world. A balancing act is very important within the related scheme of things so that an equality basis can be found within the midst of the world order. It is a fact that the developed countries have abundance within their resources for the sake of their own people. These developed regimes can easily give their people all that they need as well as a living which is free of the most basic of issues. However, what seems to be missing from the relevant quarters is an urge to set things right within the developing natio...
9 Pages(2250 words)Coursework

Developing a Strategy to Enhance Workplace Learning in Workplace at Travelex Foreign Exchange

As earlier stated, I have chosen to answer Option No. 1 which is about drafting and crafting a strategic plan which can be implemented in my workplace as a learning workplace on the basis of its analysis and identification made in the earlier assignments. As also required, the initial paragraph, following this, makes a brief review of what has been done in Assignments 1 and 2. Since as a Training Coordinator, my job entails the induction, training and assessment of the progress of the new hires, I have focused my answer to these three areas and divided the paper into Induction and Training, and; Assessment/Evaluation.

The first assignment was about the physical and social environments of the workplace and in that assign...
8 Pages(2000 words)Assignment

The Key Macro Factors that Have Influenced the UK Grocery Retailing Industry since the Early 1960s

... accounting for macro economic factors in strategy development and management, a business will fail (Johnson et al, 2008, p.3). If we consider this contextually with regard to the UK grocery market; the move demise of the local high street store to the dominance of supermarkets in the past 20 years has radically transformed the grocery market ( Henry, 2008, p.77). For example, the DEFRA Economic Note on UK Grocery Retailing (2006) indicates that in addition to continued growth in the UK Grocery Retail sector; approximately “3/4 sales are made in supermarkets and superstores… with traditional small retailers now accounting for only 7% of sales” (DEFRA, 2006). It is submitted that a key element of this is effective interrelationship between...
13 Pages(3250 words)Assignment

Introductory Economics and Finance: Why Governments Regulate Firms and Markets

By government regulation, it is meant by the rules administered by a government or government agency to influence any economic activity which determines the price, types, and standards of products, and most importantly the conditions under which the entry and exit of the firms are possible.

Like death, it is impossible to keep away from regulation in about every aspect of daily life. The business regulation may be classified into two- economic and social (Litan). The economic regulation deals with price controls and the entry limits of the firms into markets. The second type regulation mostly deals with externalities (the outside influences of the company or firm which may or may not be decided by them)

6 Pages(1500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic This is not actually micro or macro the class is called Economics of developing countries for FREE!

Contact Us