Understanding what microfinance institutions need to address to aid poverty alleviation, social inclusion and human development

Poverty, in its most basic form can be defined as a deprivation of well-being. It is an issue that has been evident in society for centuries and a concern for government policy makers and more recently for non-government organizations (NGOs). In this paper, we consider how management approaches to resolving the dilemma of poverty can be advanced by drawing on two major areas in the development arena associated with poverty, namely, ‘social exclusion’ and ‘the human development paradigm’. We put forward the argument that for groups of people where social disintegration has already occurred, only structural interventions coupled with a social development mechanism will achieve the desired effect. One method for achieving this is through the use of microfinance programs which provide a broad range of financial services to the poor and low-income households as well as to micro-enterprises. This paper contributes to both management practice and theory by developing a theoretical model that microfinance institutions need to do to aid both ‘human development’ and ‘social inclusion’ processes for the socially excluded and poor.

Reassessing Grameen Bank's micro credit programme for poverty alleviation in bangladesh : a new perspective

Rural finance has been a mltior policy in alleviating poverty in developing countries. Of specific interest are the micro credit programmes that target the poorest segment of the population. Despite some successes in particular settings, the efficacy of micro credit programmes has been a mltior concern in recent years. This paper evaluates the success of the Grameen Bank, the premier micro credit provider in rural areas in Bangladesh in the context of contemporary development philosophies. Only a few studies have evaluated the performance of the Grameen Bank from a poverty alleviation perspective. Many have evaluated the efficiency of the Grameen Bank's micro credit programmes using attributes such as the repayment rate. In this paper, we add a new dimension to the literature by arguing that if poverty alleviation is the ultimate objective, then the bank's micro credit programme should be assessed from the borrowers' perspective. Rural credit should be conceptualised not as just an input to production but as a mechanism for rural transformation. Our analysis reveals that while Grameen Bank is an efficient provider of micro credit in rural Bangladesh, its programmes fall short of achieving poverty alleviation for a multitude of borrowers and reshaping the process is hence a critical imperative.

Small-scale irrigation, pastoral livelihood diversification and poverty alleviation in Kenya

Pastoral traditional livelihood systems are under threat from drought and human predation. Those who diversified into irrigation farming are less vulnerable and able to re-invest in the pastoral economy and alternative livelihood activities. Small-scale irrigation has contributed towards economic growth and poverty alleviation in the target area. These changes may however not be sustainable.

Assessing impact of micro finance on poverty alleviation - Bangladesh perspective

“Micro finance” or its major part “micro credit”, both used interchangeably, is an important institutional device for alleviating poverty of the poor people. Micro finance concept was first developed and initiated in Bangladesh in the late seventies with a view to help the people living below the poverty line. Since its inception to till date, there has been tremendous growth of organizations, known as MFIs (Micro Finance Institutions), in this field to deal with the micro finance/credit activities. Despite this, the poverty situation of the poor people who have already used the micro finance programs was not improved substantially. The few MFIs have their own programs to conduct survey on impact assessment of their individual micro credit activities. The present study will focus on the impact assessment of micro finance activities on some variables of poverty alleviation, the extent to which these programs helped loanees to become micro finance graduates and the relevant suggestions as to the success of the micro finance activities.

Winds of change in Myanmar? Implications for international cooperation In poverty alleviation

We are witnessing the beginnings of what could well be significant change in Myanmar. Elections in November 2010 were quickly followed by the release of opposition leader Aung San Suu Kyi, then by the resignation of Senior-General Than Shwe, dissolution of the State Peace and Development Council (SPDC), the opening of parliament, and the inauguration of Thein Sein as President on 30th March 2011. Thein Sein's inauguration speech called for national reconciliation and an end to corruption, promised a more market-oriented economy, and vowed to create employment opportunities. He also pledged to develop the health and education sectors in cooperation with international organisations, and to alleviate poverty. While some fear this may only be rhetoric, a growing number of indications suggest that major political and economic reform may indeed be getting underway. This paper traces these recent developments and the possibility of significantly improved international development cooperation in Myanmar, particularly as it affects the prospects of poverty alleviation efforts and cooperation with Western INGO and multilateral agencies. It analyses the implications of this reform on international development assistance and cooperation from the perspectives of humanitarian needs, international relations theory, development theory, and political philosophy.

Understanding poverty and promoting poverty alleviation through transformative consumer research

Consumer research holds potential for expanding society's understanding of how people experience poverty and mechanisms for poverty alleviation. Capitalizing on this potential, however, will require more exploration of how consumption experiences shape individual and collective well-being among the poor. This article proposes a framework for transformative consumer research focused on felt deprivation and power within the lived experience of poverty. The framework points to consumer choice, product/service experiences, consumer culture, marketplace forces, and consumption capabilities as research streams with potential to help alleviate poverty. Future research in these areas will expand pathways for transforming the lives of the poor by alleviating stress, engaging marketplace institutions, fulfilling life aspirations, leveraging trust and social capital, and facilitating creativity and adaptation.

Conflicts at the bottom of the pyramid: profitability, poverty alleviation, and neoliberal governmentality

This article adopts the concept of neoliberal governmentality to critically analyze public policy failures in a bottom-of-the-pyramid (BOP) marketing initiative. This research shows that e-Choupal, an Indian BOP initiative, is hampered by a divide between poverty alleviation and profit seeking, which is inadequately reconciled by the neoliberal government policies that dominate contemporary India. The initiative sounds good, even noble, but becomes mired in divergent discourses and practices that ultimately fail to help the poor whom it targets. This research helps explicate the problems with BOP policy interventions that encourage profit seeking as a way to alleviate poverty.

Animals in international development, poverty reduction and sustainable livelihoods

This paper explores the role and percept¡ons of an¡mals in internat¡onal development efforts and the possible contradictions between differing priorities of agencies involved in internat¡onal charitable efforts. The description ofthe differing descriptions of purposes in the (England and Wales) Charities Act of 2006 prov¡des a good starting point. There are many available purposes for charities, and although having one purpose does not preclude a second, organizations concerned with animal welfare appear to be quite d¡stinct from those work¡ng for poverty alleviation in the developing world. A fun and novel gift of a donkey may equally be perceived as a cruel, environmentally unsustainable and misguided development effort, a valuable asset for a household, or a burden to a household struggling to feed existing mouths..... This paper questions the underlying tensions between human development, animal welfare, and poverty alleviation exploring cultural tensions, philosophical tens¡ons and where areas of common ground may be found.

Overcoming systematic rural poverty : lessons from the Yunnan Upland Management Program

Sustainable poverty alleviation means more than the relief of poverty. It means attention to the systemic foundation of poverty and enhancement of local community and household capacity for self-reliance to sustain the improvement. This thesis assesses the record left behind by the Yunnan Upland Management Program (YUM) among rural households in remote and isolated southwestern China. Poverty is many faced and cannot be resolved without the active participation of the victims.

Use of poverty indicators and the poverty pyramid for agricultural and rural development in the smallholder sector in Sri Lanka

Based on official micro-level poverty studies for agricultural and rural development in the smallholder sector of Sri Lanka. The Poverty Pyramid was found to be a powerful tool for poverty analysis and the design of poverty alleviation strategies that are targeted at sustained poverty alleviation. Identification of the correct target groups by factors that prevent them from being more productive in their income generation activities is crucial to the formulation of rural development programs that benefit poor people first and most.

Applying a transformative consumer research lens to understanding and alleviating poverty

Increasing attention to global poverty and the development of market-based solutions for poverty alleviation continues to motivate a broad array of academicians and practitioners to better understand the lives of the poor. Yet, the robust perspectives residing within consumer research remain to a large degree under-utilized in these pursuits. This paper articulates how applying a transformative consumer research (TCR) lens to poverty and its alleviation can generate productive insights with potential to positively transform the well-being of poor consumers.

Exporting social policy from Latin America to the Philippines: Securitisation, neoliberalism and multilateral mediation of poverty policies

Recent years have seen an increased acceptance of social transfers as part of renewed efforts at poverty alleviation policies based on social risk management. There has been an instance in the use and promotion of conditional cash transfer (CCT) policies by multilateral development agencies (MDAs). One case is the Philippines. The ideational basis of CCTs can be traced to the influence of neostructuralism in Latin America. One facet of this was an attempt to reconcile neoliberal strategies of development with aspirations for guaranteed minimum incomes. The adoption of CCTs was mediated by MDA s that further reduced the modest concessions to poor people's rights implicit in Latin American programs. The Philippines demonstrates that MDAs have promoted a more heavily securitised and compliance-focused versions of CCTs that was derived the Colombian security state. Although small grants are welcomed by poor households, they have acted to further enforce state control while maintaining a neoliberal policy focus.

Micro finance programs: caring for those missed by formal social protection mechanism

In line with the current global trend of economic and social restructuring, it has become essential to address the issue of poverty and social protection for the poorer segment of the population who are not covered by formal social protection mechanisms. Micro finance institutions (MFIs) in developing countries have been working towards poverty alleviation and enhancing social protection for the last few decades. MFI’s provision of financial assistance to the poor has been instrumental in improving the overall quality of the impoverished. Based on an in-depth qualitative study conducted across three different types of NGOs (Non Governmental Organization) in the Philippines, this study found a relationship between micro finance programs and improved social protection. The study reveals that MFIs have the ability to make a positive impact on areas such as entrepreneurship, education, housing, job security and income generation.