Microcredit Resources
Below is a list of references which help explain what micorcredit is and how it empowers individuals living in poverty achieve sustainable development.
Bruck, C. (2006, October 30). Millions for Millions. The New Yorker, 82, 62-73.
This piece from The New Yorker is a great summary of the dialogue concerning microcredit and its effectiveness at alleviating poverty for those of the Global South. Bruck investigates microcredit through the people who head these organizations and their ideological worldview—what are their true motivations for providing credit and how does it affect its recipients. Invaluably helpful as a preliminary source to frame the debate over microcredit and its future in the world, is succinctly raises the questions concerning for-profit and non-profit microfinance organizations, sustainability, its current buzz-word popularity, and how do we truly evaluate effectiveness of microcredit. Truly an astounding piece concerning microcredit, one of the best I’ve read exploring microcredit from seemingly all aspects by looking at microcredit in terms of its leaders as well as in terms of the recipients.
Krieger has written this piece as a basic introduction to the history of microcredit and its modern day manifestations for an audience which has not had much, if any, experience with the world of microcredit. Going back to the start of currencies and the origin of small lending there, Krieger then moves into the modern-day manifestations of microcredit, its possible benefits as well as its detractors. Useful at raising the source Does Microfinance Really Help the Poor has led me to request this on reserve to be included in my final report. This “popular source” piece mentions FINCA and its origins, giving a brief a history of FINCA and its practices. This is a good source for a preliminary survey on the effectiveness and history of microcredit in the world.
Providing an evaluation of microfinance programs which use the joint liability group lending model has a direct application to FINCA and its lending policies. This piece will allow me to accurately comment on empirical results of the effectiveness and actual workings (from a theoretical economic standpoint) of these microcredit systems and help provide commentary on whether FINCA’s loan practices coincide with these practices and whether it has an affect on the reach and effectiveness of assisting clients in rising out of poverty. Commentary on financial performance and sustainability of this system of microcredit and its outreach will be very useful for evaluating FINCA’s program. This article is a refereed journal article from The Economic Journal.
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