Literature review on poverty alleviation
Thus the microfinance strategy is neither a panacea nor a ‘magic bullet’ in poverty alleviation (armendariz de aghion & morduch, 2005; ahmed, 2010; zhan & wong, 2014). We organized the general strategies into four asset groups that could be targeted to alleviate poverty: human, natural, built / financial, and social / political.
Summarythe failure of traditional poverty reduction programs in achieving deeper outreach to the very poor is a growing concern, as evidenced by the united nation’s millennium development goals (mdgs) which envision extreme poverty to be halved by 2015. Many research works on microfinance depend uponpersonal anecdotes, thus this present paper attempts to compilethe scattered empirical findings on microfinance and classification:e21, g21, inance, poverty, poverty alleviation, empirical review, inance is increasingly gaining currency as a poverty alleviation intervention.
We conducted a literature review on pathways out of poverty for low-income households in developing countries and identified and categorized general strategies and outcomes demonstrated to be empirically associated with poverty alleviation. Microfinance also sets the poor free from the ‘chains’ of usurious private moneylenders hence reducing the severity of social exclusion and poverty.
These become inhibitors to the success of microfinance in poverty alleviation, especially in the rural poor lack access to financial resources hence reducing their capability to meet their health requirements. Leigh andersontravis reynoldsabstract: the literature on poverty’s causes and cures in developing countries posits a variety of contributing factors.
Contrariwise, they established regressive (negative) impacts for poorer households (those in the absolute poverty category) but for richer households, they established positive influences. However, microfinance has its own challenges that include inadequate physical and financial infrastructure, unsupportive policy environment, limited institutional capacity, inadequate investment in the rural areas, inadequate support in social capital development, microfinance misconceptions and so r, the overarching question is about the viability of microfinance as a strategy for alleviating rural poverty and its efficacy as a strategy in the different contexts.
An increase in productive capacity will in turn improve production hence reducing poverty through increased output, income and employment. Off-seasons lack economic activity and people tend to be idle hence production falls and this increases their vulnerability to poverty.
The rural economy therefore fails to explore other avenues that are vital for the alleviation of poverty. This paper attempts to bring togetherthe empirical works that were done in different contexts to shedlight on the important relationship between microfinance andpoverty.
Designing services to help the very poor often means taking into account the historic, sociopolitical and economic factors that contribute to the persistence of poverty. The international poverty centre reported that even in relatively successful countries such as ghana and tanzania, only about 6 percent of the population had access to banking services (hailu, 2008).
Daley-harris cites a study of share microfin limited of india where it was established that the strongest impact on poverty status was the increase in asset ownership. A conducive microfinance operational environment will promote the growth of the sector thus strengthening its poverty alleviation , d.
The impact analysis from literature shall be based on the summarized microfinance poverty reduction nexus (see table 1 below) that was developed by the asian development bank (2000). The disaster of illness struck ten of the 17 grameen bank families who are still in the poverty group (magner, 2007, p.
An analysis of empirical works shows thatmicrofinance enhances poverty alleviation despite the challengessuch as the indian andhra pradesh crisis. This has an overall effect of reducing unemployment hence reducing poverty levels and improving the standards of living of the people in the rural communities.
Back to search ys out of poverty: outcomes associated with poverty alleviation in developing research brief #316sun, 12/13/2015authors: pierre biscayebrian hutchinsonmelissa lafayettec. Microfinance and poverty inance intervention has been received with enthusiasm by governments, foundations, community development groups, non-governmental organizations and even for-profit private firms (carr & zhong, 2002).
Purpose of this paper is to carry out an empirical analysisof the link that exists between microfinance and povertyalleviation. This gave an impetus for empirical studies carried out in different countries to investigate the impact of microfinance as a poverty alleviation tool.
In this review, we present a summary framework for categorizing the various theorized pathways out of poverty, and evaluate the empirical evidence for which interventions and resulting outcomes are most frequently and most strongly associated with poverty alleviation. Back to resources searchliterature review on poverty reduction strategies aimed at the very poor by zahra campbell-avenell in ad pdf (123.
Conclusion and paper carried out an empirical literature review, finding out more from other authors, an understanding of microfinance and poverty alleviation. Theoretical and empirical literature suggest that microfinance can be used to support savings and investments, consumption smoothing and food security, agricultural activities, non-farm activities, enterprise development and social cohesion.