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Understanding developments 2- international relation - Essay Example

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Their aim is to target small income earners and people living below the poverty line. Conversely social protection can be defined as policies that prevent, manage and overcome…
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Understanding developments 2- international relation
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This means that these countries are poor countries which need either the microfinance or the social protection policies to better their lives. This paper is going to compare, with evidence, ways in which microfinance and social protection policies have achieved poverty alleviation and secured more livelihoods. Furthermore, this paper is going to aptly decide which of the two methods is efficient in its attempt at poverty alleviation and creation of secured livelihoods. Microfinance has done a lot to reduce poverty in the global south since it has reached even the poorest of them all.

This is because microfinance, unlike streamline banks do not see peasants as not worthy for credit and has put rules that do not favor the poor thus microfinance comes in. an example is in Bangladesh where poverty was rife until one of their own called Muhammad yunus developed the classical grameen model, what is today called the microfinance in the 1970. He decided to give small loans to a group of five people and it grew and become a significant poverty reduction tool in the world. As per now south and east Asia have the most striking poverty reductions in the world (Wood, Malik, & Sagheer, 2006, 14).

Secondly, microfinance has enabled the global south population to become self employed since jobs are scarce. By doing this they in turn create employment for other people and this better eradicates poverty. An example is India whose about 70% of its population is poor and depend on farming. These farmers have all along been excluded from loans that would help them involved in large scale farming. Now with the help of microfinance, India has seen a striking reduction rate in poverty since peasant farmers can now access loans, better manage themselves and build assets.

Thirdly, in the global south women have a lower percentage of education and are thus not empowered especially in the Middle East. In fact according to World Bank, Middle East as a

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