ipl-logo

Financial Inclusion Importance

1142 Words5 Pages

Financial Economics CIA
Vandana Menon
1313834
Microfinance and the Importance of Financial Inclusion
Introduction
All households, businesses, and individuals are entitled to be able to access proper financial services to improve their lives. Microfinance is the source of these financial services, and the objective is to achieve a world in which as many poor and near-poor households as possible have permanent access to services such as credit, savings, insurance, fund transfers, etc. Financial inclusion refers to the efforts made toward attaining this goal. Microfinance, essentially, is thus a way to reduce poverty, if practiced efficiently and responsibly.
Nicholas Kristof, a Pulitzer prize winning New York Times columnist, stated that “Microcredit …show more content…

Financial inclusion is linked to a country’s economic and social development, and plays a role in reducing extreme poverty.
According to the most recent Global Findex data, from 2015, 89% of adults in high-income economies report having an account at a formal financial institution; in developing economies, 41% of adults do. Regionally, according to this same database, the rate of unbanked adults is highest in the Middle East and North Africa, at four out of every five adults, followed by Sub-Saharan Africa and South Asia. In several developing economies, more than 95% of adults do not have an account at a formal financial institution.
How does Financial Inclusion Help?
Financial inclusion can help to alleviate poverty by providing financial services. Some of these services are:
• Credit: Microcredit helps encourage investments into assets that enable business owners to start or expand small enterprises. For example, with access to credit, farmers can invest in larger quantities or more diverse livestock; the owner of a market stall can purchase more wares to sell; an artisan can acquire more raw …show more content…

Singh, C. (n.d.). Working Paper 474: Financial Inclusion in India: Select Issues.Retrieved from http://www.iimb.ernet.in/research/sites/default/files/WP%20No.%20474.pdf
2. Registrar General of India. (2011). Census of India. Available from: http://www.censusindia.gov.in.
3. Consultative Group to Assist the Poor. (2015). Microfinance Frequently Asked Questions | CGAP. Retrieved from http://www.cgap.org/about/faq
4. Global Partnership for Financial Inclusion(GPFI). (2011). G20 Financial Inclusion Indicators | India | The World Bank. Retrieved from http://datatopics.worldbank.org/g20fidata/country/india
5. Kristof, N. (2009). The Role of Microfinance. On the Ground. Retrieved from http://kristof.blogs.nytimes.com/2009/12/28/the-role-of-microfinance/?_r=0
6. Duflo, E., Banerjee, A., Glennerster, R., & Kinnan, C. (2014). The miracle of microfinance? Evidence from a randomized evaluation. †MIT Department of Economics, NBER and J-PAL. Retrieved from http://economics.mit.edu/files/5993
7. Sinclair, H. (2012). Confessions of a microfinance heretic. San Francisco, Calif.: Berrett-Koehler Publishers.
8. Demirgüç-Kunt, A., & Klapper, L. F. (2012). Measuring financial inclusion: The global findex database. World Bank Policy Research Working Paper,

Show More
Related
1008 Words | 5 Pages

Moreover, researching and finding common data is very difficult as there are so many different agencies and fund design principles available such as private or public ones, types of financial instruments or various implementing entities (Sierra, 2011). However, the UNFCCC is said to be “the primary international, intergovernmental forum for negotiating global response” and it should therefore be its role to bring data together in order to make measurement analysis easier with more concentrated

Read More
578 Words | 3 Pages

While some have been slightly improving, taken as a whole, Latin America is in a slump. Some of the viewpoints attributed this to the extremely interventionist policies instituted by the International Monetary Fund (IMF). The International Monetary Fund, according to the speakers, gives a large sum of money to these struggling countries and in return institutes standard policies that are not always successful. One source described it as an “experiment where they’ve forced these countries to implement tight fiscal policies and open trade and monetary policies regardless of what was happening on the ground, and it has failed” (21-22). However, officials from the International Monetary Fund dispute these claims, and assert that their policies have brought about positive change and growth.

Read More
659 Words | 3 Pages

In Nicholas Kristof's “Doughnuts Defeating Poverty” he claims that without a bank the people in poor African countries have no way to manage money. I agree with Nicholas Kristof's point of view on the topic, but at the same time I disagree with him. He uses the Nasoni family in the southern African nation of Malawi as a vocal point for his argument. They were a poor family consisting of Alfred Nasoni and his wife, Biti Rose, and their seven children. It became five children after two die.

Read More
1605 Words | 7 Pages

Granted, they do tell readers what GGI is referring to, but even the explanation is wordy and confusing to the type of audience Hooks wrote for, “The GGI is the percent of total government spending on nonmedical [sic] means-tested programs divided by the poverty gap” (Rose and Baumgartner, 38). The authors make a point to mention other statistics as well, including amounts of nonmedical poverty spending and its rise through the years, various themes about poverty written in newspapers such as The New York Times, The Chicago Tribune, and three others, not to mention, noting time periods critical towards the increasingly negative mindset affiliated with the

Read More
665 Words | 3 Pages

The Delegation of Canada recognizes that it is imperative to address the following issues in the Caribbean and Latin America; however the Delegation also believes that the main body of the IDB must concede to the financial constraints of the organization.. The Delegation of Canada would implore the member states of the IDB to consider that a fair and proper distribution of IDB funding across all of its programs is paramount to achieving multilateral sustainability and solidarity. With this in mind, the member states are required to exercise fiscal responsibility in the committal of funding for the various projects and programs of the. In addition, the Delegation of Canada acknowledges the reality that there are many monetory challenges plaguing these areas and takes this into consideration when evaluating budgets for different projects.

Read More
955 Words | 4 Pages

Income Inequality in the United States Are you the "99 percent" or are you the "1 percent" ? In the United States, nationals are set in social classes based upon their salary. This motto focuses on the abundance of the wealthiest and the rest. As indicated by the article "We are the 99 percent" by Brian Shelter, protestors are battling for more equivalent dispersion of wage. They are utilizing online networking like Twitter, Skype, Tumblr, Facebook and more to Arrange occasions and advance their reason.

Read More
742 Words | 3 Pages

Financial opportunities also allow one to be confident because one would not have to worry about what might possibly go wrong because of economic status. However, one would not have to worry about that because there is a lending hand to those who are seeking the assistance. These are all important things that increases opportunity. One would not get knowledge if they are stuck in a poor community in which everyone is stagnate. Therefore, financial resources is a great way to help people excel and get out of the ideas of they cannot do it because of race and other outside

Read More
959 Words | 4 Pages

Why Poverty Should Be Stopped The world today is full of problems. It’s difficult work for people all over the world to solve these concerns. Why? Because each of these problems are related to one another.

Read More
748 Words | 3 Pages

Introduction Keeping record of activities and expenditures is crucial in personal finance planning and could really help in managing personal finances. This paper identify what is accounting and how does it help to manage personal finance, describes products of accounting and bookkeeping procedures that are useful in personal financial planning and how personal financial software could assist in personal financial decisions. What is accounting and how does it help you manage your personal finances?

Read More
1429 Words | 6 Pages

Families can be regarded as the foundation of society. For Fleetwood (2012: 1), the importance of families is highlighted by the fact that it would be difficult to comprehend a society that could function without them. In addition, even though families and their compositions vary across societies and cultures, the family can be viewed as a universal social institution (Macionis & Plummer, 2012: 625. Specifically, according to Macionis and Plummer (2012: 625) and Neale (2000:1), it has the ability to unite individuals into cooperative groups via social bonds (kinship) and is ultimately experienced differently from individual to individual. However, the family can be a source of conflict, tension and inequality, which is why one of the key practices

Read More
1873 Words | 8 Pages

When analyzing income inequality, there are two main categories which may seem similar but in reality have very different meanings. The first one is the income inequality within a country which is usually measured with the Gini Index. The second one is the income inequality between countries which is measured as the difference in National Income. This paper will mainly focus on intra-national income inequality. There is no doubt that between the richest and the poorest countries the gap in average incomes has been widening.

Read More
1615 Words | 7 Pages

The nations still are collectively powerful, in that they can use the institution as well as legislative powers to regulate the economic and fiscal situation of the world today. The capacity of individual nations and their powers over the economic and fiscal decisions of their own country, however, has reduced a great deal. Economic policies are now subject to examination by currency and bond traders, trade partners, large corporations, banks, and private investors. It has now become increasingly difficult to make string ling term economic policies which will serve the interest of the country over extended periods of

Read More
791 Words | 4 Pages

I. Introduction A. Thesis statement: A child’s early development is greatly impacted by living in poverty which leads to poor cognitive outcomes, school achievement, and severe emotional, and behavioral problems. II. Body Paragraph 1. Claim: According to (Short, 2016) poverty consists of two parts: a measure of need and resources available to meet those needs.

Read More
795 Words | 4 Pages

Here are somwe organixations or compainies that tried to eliminate. A chineease business that tried in Namibia donated 600,00 Naibiam dollars ( 47,000 U.S Dollars) to an anti poverty fund. In 2008, a Stanard Bank donated 250,000 to help a project that breaks the cycle of poverty. The last company that helped to break the cycle of poverty was a couple and the donated 150 million dollars to stanford university, to open a facilty to eliminate poverty in developing nations. There are many things that a person that isn’t in poverty can do that can help another person that is poverty.

Read More
812 Words | 4 Pages

Financial management “is the operational and financing activity of a business that is responsible for obtaining and utilizing the funds necessary for effective operations. Thus, Financial Management is concerned with the effective funds management in the business process. Finance is interrelated functions which deals with marketing function, production function, Human Recourse function and Research & development activities of the business concern. Financial Management is concerned with the financing, acquisition and management of assets with some overall goal in minds. There are three major areas in Financial Management decision making.

Read More

More about Financial Inclusion Importance

Related Topics

Open Document