Masterarbeit, 2016
69 Seiten, Note: Undergraduate
This dissertation examines the effectiveness of microfinance in least developed countries, particularly focusing on the instances where it has failed. The study aims to identify the reasons behind these failures and suggest solutions to prevent similar occurrences in other developing nations. This analysis will be conducted by exploring microfinance's impact on poverty rates, taking into account factors such as literacy rates, loan amounts, and population size.
The key themes and concepts of this dissertation revolve around microfinance, poverty reduction, financial inclusion, developing countries, least developed countries, economic development, impact evaluation, literacy rates, loan amounts, total population, poverty rates, and the potential benefits and risks of microfinance programs.
Microfinance was introduced as a revolutionary tool to eradicate poverty by including the poor in the financial system and providing small loans for micro-enterprises.
The study analyzes failures in countries like India and South Africa, pointing to issues in implementation, high interest rates, and lack of socioeconomic support.
Key variables include the literacy rate of the population, the amount of the loan per person, and the total population density.
There is a controversy in recent literature; while it helps many, its real effect on the most deprived societies is debated when structural issues are not addressed.
Higher literacy rates generally correlate with better loan management and a higher success rate for micro-enterprises funded by micro-loans.
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