Rethinking Microfinance for Developed Countries

Pedrini, Matteo; Bramanti, Valentina; Minciullo, Marco; Ferri, Laura Maria

doi:10.1002/jid.3205

Cited by 21 publications

(16 citation statements)

References 74 publications

(91 reference statements)

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“…Goheer, ; Khan & Shaorong, ), instead benefit rich landlords or the agencies themselves disproportionately. Therefore, alternative credit scoring, networks and social collateral are essential to reach the most vulnerable women (Pedrini, Bramanti, Minciullo, & Ferri, ), using credit alone as a development intervention is neither justified nor helpful.…”

Section: Introductionmentioning

confidence: 99%

Gender, Microcredit and Poverty Alleviation in a Developing Country: The Case of Women Entrepreneurs in Pakistan

Hussain

Mahmood

Scott

2018

J of Intl Development

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The paper explores the impact of financial exclusion on financial and human poverty amongst women in Pakistan. The findings suggest that persistent financial exclusion, gender discrimination and conservative religious values adversely impact women's empowerment. There is an inverse correlation between the size of microcredit and women's financial poverty, which is not the case for human poverty. Larger families experienced higher rates of poverty reduction than smaller families. The study offers evidence and supports theories on the impact of microcredit upon poverty alleviation. These findings inform policy makers, women entrepreneurs and microfinance institutions. © 2018 John Wiley & Sons, Ltd.

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Section: Introductionmentioning

confidence: 99%

Gender, Microcredit and Poverty Alleviation in a Developing Country: The Case of Women Entrepreneurs in Pakistan

Hussain

Mahmood

Scott

2018

J of Intl Development

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“…Meanwhile, the European Commission in 2004 adopted a similar approach to make available microfinance, defining this as loans of up to €25,000 available to those who cannot access mainstream credit (2016). Much lower figures are also available to EU citizens, a point that Pedrini et al (2016) regard as being able to reduce poverty and promote social inclusion. Across the USA, as with many parts of the EU and other developed nations, the authors find that there is a significant proportion of low-income households lacking access to financial services who are at heightened risk of poverty, citing that approx.…”

Section: Have Never Worked So Hard To Be So Poormentioning

confidence: 99%

“…35 million people (7%) across EU nations have limited access to manageable finance. In the USA, this is 14% of the population, or 45 million people (Pedrini et al 2016).…”

Section: Have Never Worked So Hard To Be So Poormentioning

confidence: 99%

“…The power of microfinance, aimed at fledgling enterprise can be packaged to individual households. Pedrini et al (2016) show that, across several developed countries (France, Spain, UK, and Italy), policies to allow social microcredit to be targeted at the household level have been implemented, providing loans of up to €10,000. In Australia, microfinance schemes, such as the Good Shepard Sisters, can offer women fleeing domestic violence no interest loans, allowing them to live independently.…”

Section: Have Never Worked So Hard To Be So Poormentioning

confidence: 99%

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Poverty Premiums: Cost of Being Poor

Beck

2020

Encyclopedia of the UN Sustainable Development Goals

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Definition "Life is more expensive than we can tolerate" Linda Tirado (2014) Poverty within a developed country is typically considered within "relative" terms. This means that people experience poverty relative to those within their society. This acknowledges that a certain standard of living is expected within developed countries, yet, simultaneously admitting that poverty persists. Moreover, within developed countries such as the UK, Australia, and New Zealand, or across North America, etc., not all experiences of poverty are shared. What is more common is the fact that being poor in a rich country is hard work; collectively and politically, society places certain expectations upon households, indicative of expected living standards. Unfortunately, however, this burden of expectation is insidious within discourses of poverty, as they normally are met through paying a premium rate for the same services than would be paid by wealthier households. Operating as a financial penalty, the poverty premium ultimately produces a form of chronic poverty, pushing poorer households further toward deprivation as they struggle to meet these expectations. More specifically, low-income households suffer extended poverty due to a systemic lack of trust and, therefore, become exploited by providers of expected services. A poverty premium recognizes, therefore, the burden of having additional costs applied to accessing services simply because you already live in poverty. Although on the surface this may seem perverse, to be in poverty in a wealthy country can be expensive.

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“…As such, MFIs which provide HMF continues to strive toward providing accessible and affordable finance on a sustainable basis to low-income groups of the population in emerging markets (Pedrini et al, 2016;Bondinuba, 2016). This effort by MFIs particularly is to enable low-income earners in developing countries to meet their housing needs .…”

Section: The Concept Of Housing Microfinance In the Low-income Housinmentioning

confidence: 99%

De/motivations in housing microfinance delivery in Ghana

Bondinuba

Hedidor

Opoku

et al. 2017

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Purpose -The purpose of this paper is to explore the de/motivation variables in the delivery of housing microfinance (HMF) in the low-income housing market in Ghana.Design/methodology/approach -The paper relied on a survey of 125 respondents of microfinance institutions (MFIs) to understand the interactions and effects of these variables on HMF delivery in Ghana. Descriptive and bivariate statistical methods were used to analyse the data.Findings -The findings revealed that both internal and external variables motivate MFIs to engage in the lowincome housing market. These variables are: MFIs desire for expansion, the potential size of the low-income housing market, the market potential for MFIs growth, the availability of local resources, unique features and products of the market, low-income housing offering an opportunity for leveraging resources and the preference for homeownership than rental among individuals in the low-income segment of the population. However, variables such as capital lockup in HMF delivery, high-interest rates in the country, high cost and land prices, high cost and price of building materials, lack of sufficient collaterals and the different interest rates required on HMF loans also served as demotivation in the low-income housing market in Ghana.Research limitations/implications -The paper findings are limited in context to Ghana.Practical implications -The paper, although limited to Ghana, contributes to the much-needed body of knowledge on low-income housing finance in developing countries.Originality/value -The paper is the first of its kind in using empirical data to explore the motivational and demotivational variables in the delivery of HMF in a developing country context such as Ghana.

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Rethinking Microfinance for Developed Countries

Cited by 21 publications

References 74 publications

Gender, Microcredit and Poverty Alleviation in a Developing Country: The Case of Women Entrepreneurs in Pakistan

Gender, Microcredit and Poverty Alleviation in a Developing Country: The Case of Women Entrepreneurs in Pakistan

Poverty Premiums: Cost of Being Poor

De/motivations in housing microfinance delivery in Ghana

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