Microfinance and the Reduction of Poverty Essay

1301 Words 6 Pages
Imagine that someone lives in the States, and this person’s local bank just offered them a one-hundred dollar loan. What do they do? Do they scoff? Do they ask if there has been a mistake and then ask to speak to the branch president? The fact of the matter is, if someone received a loan for one hundred dollars in a developed nation, it would do nothing to lessen his or her worries. It would not go particularly far in providing food or clothing for their children, let alone provide them with an education. It is just a c-note; and without a few more of these greenbacks, little can be done in any developed nation. However, through a movement known as microfinance, a small piece of paper is going a long way for the world’s poorest people. …show more content…
11-12). Akua Ofori-Adjei, an international development consultant, addresses a micro-insurance concept modeled after microcredit in his article “Microfinance: An Alternative Means for Health Financing for the Poor”. In his article, published in the Ghana Medical Journal, Mr. Ofori-Adjei explains, “Integrating healthcare into a well-established microfinance organization is a unique way to bring healthcare financing to many communities and to mitigate the financial risks associated with poor health” (Ofori-Adjei 194). Microfinance goes a long way in providing assistance and furthers the probability of self-sustainability and progression. These loans are essential for the success of these third world economies and the future generations. For instance, Maria Isabel Coral, an Ecuadorian recipient of a USAID funded microloan, was able to pay for her daughters’ higher education due to the positive impact her loan had on her business (USAID). Micro finance is constantly evolving as institutions develop new strategies for developments to infrastructure, as this will perpetually preserve the industry as a whole. Muhammad Yunus, founder of the Grameen bank and father of modern micro finance, has made it his lifelong mission to alleviate poverty and increase financial stability and equality.

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