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Microfinance poverty alleviation

microfinance poverty alleviation

All Answers (21)

Hermann Gruber · Universidade Estadual de Londrina

There are several aspects. First, empirically, it is seen that the feudal tradition - in which young people learned the craft from their parents and later followed his profession - is still latent in the various societies of Muno. However, due to the Voras capitalism, crises prevented young people could learn these trades. And adults who have this knowledge, could not afford to modernize or even purchase a tool to develop their profession. In this respect, microcredit resolves without further problems because of their characteristics, as collateral for the loan is the lender's reputation in society.

In one aspect of Marxism, what you see is the need of capitalism has industrial reserve army. This condition does not consider that this army wants to live, marry, have children, be happy. The holder of capital is satisfied only with the assurance that people are poor because they are sluts or unwilling to work. Whereas work in situations that never would subject the capitalist as with many Indian factories. Microcredit allows survival of the worker more satisfying than

being unemployed dependent on the goodwill of the capitalist.

In the aspect of income distribution, what you see is an increase in the occupation of society, and consequently an increase in salary. Although in number less efficient than government transfers as the models of Bolsa Familia in Brazil and the laws of American and Finnish social assistance. This increase in income in the hands of poor, miserable, middle-class causes an immediate increase in demand. Thus the capitalist himself is benefited by these social economic plans.

In macroeconomic sees the possibility of small holders of microcredit, the situation of living to earn what they spend, according to Kalecki table. Since the poor are able to produce what they consume.

Examples: In a former slum in Brazil under the name of Palmas, a resident of landfill could create a microfinance bank. He took the opportunity to create a unique ballot for residents in the neighborhood's residents moved to give preference to consume the production of their neighbors than places that received the government's official ballot. As a result, an entire neighborhood out of poverty and misery.

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