Microfinance in the Developing World
- NINT 5187 - Microfinance in the Developing World (Fall 2008)
Poor people have limited if any access to financial services from the usual financial institutions, especially in developing countries. And yet small-scale financial services - safe savings, appropriate credit, personal insurance, and the ability to make and receive payments at moderate cost (such as receiving remittances from relatives working abroad) - are important for poor households trying to manage their affairs and wishing to take advantage of small business opportunities. While institutions set up by governments (e.g., postal savings banks) and community institutions (e.g., savings and loan cooperatives) have traditionally provided whatever formal financial services the poor could access, an international movement of non-governmental organizations, government donors, foundations and private investors has sought over the past 25 years to introduce and spread "microfinance" services to the poor worldwide. This course will examine microfinance in the context of building "inclusive" financial sectors. It will look at issues of demand, supply, and public policy in microfinance. It will ask students to debate controversial issues, of which there are many in this field, which some people hold up as the key to fighting poverty and gender discrimination, and others consider a distraction from more crucial policy changes.
Concentration:Development