In two volumes these books review and expand the theory that poverty in the world's poorest regions could be alleviated by providing small loans to micro-entrepreneurs. Volume 1 provides detailed analysis of this theory and offers policy recommendations for practitioners in this field. Volume 2 presents empirical evidence drawn from comparative experiences in seven developing countries. The work assesses the success of this policy and provides some startling conclusions. This is essential reading for all those interested in development, poverty-reduction, social welfare and finance.
The inspirational story of how Nobel Prize winner Muhammad Yunus invented microcredit, founded the Grameen Bank, and transformed the fortunes of millions of poor people around the world. Muhammad Yunus was a professor of economics in Bangladesh, who realized that the most impoverished members of his community were systematically neglected by the banking system -- no one would loan them any money. Yunus conceived of a new form of banking -- microcredit -- that would offer very small loans to the poorest people without collateral, and teach them how to manage and use their loans to create successful small businesses. He founded Grameen Bank based on the belief that credit is a basic human right, not the privilege of a fortunate few, and it now provides $24 billion of micro-loans to more than nine million families. Ninety-seven percent of its clients are women, and repayment rates are over 90 percent. Outside of Bangladesh, micro-lending programs inspired by Grameen have blossomed, and serve hundreds of millions of people around the world. The definitive history of micro-credit direct from the man that conceived of it, Banker to the Poor is the moving story of someone who dreamed of changing the world -- and did.
Make your money make a difference—and enjoy attractive returns Small Money, Big Impact explores and explains the globally growing importance of impact investing. Today, the investor's perspective has become as important as the actual social impact. Based on their experience with over 25 million micro borrowers, the authors delve into the mechanics, considerations, data and strategies that make microloans and impact investing an attractive asset class. From the World Bank to the individual investor, impact investing is attracting more and more attention. Impact investing is a global megatrend and is reshaping the way people invest as pension funds, insurance companies, foundations, family offices and private investors jump on board. This book explains for the first time how it works, why it works and what you should know if you're ready to help change the world. Impact investing has proven over the last 20 years as the first-line offense against crushing poverty. Over two billion people still lack access to basic financial services, which are essential for improving their livelihood. Investors have experienced not only social and environmental impact, but have received attractive, stable and uncorrelated returns for over 15 years. This guide provides the latest insights and methodologies that help you reap the rewards of investing in humanity. Explore the global impact investing phenomenon Learn how microloans work, and how they make a difference Discover why investors are increasingly leaning into impact investing Consider the factors that inform impact investing decisions Part social movement and part financial strategy, impact investing offers the unique opportunity for investors to power tremendous change with a small amount of money— expanding their portfolios as they expand their own global impact. Microfinance allows investors at any level to step in where banks refuse to tread, offering opportunity to those who need it most. Small Money, Big Impact provides the expert guidance you need to optimize the impact on your portfolio and the world.
Want to end poverty for good? Entrepreneur and Samasource founder Leila Janah has the solution—give work, not aid. “An audacious, inspiring, and practical book. Leila shows how it’s possible to build a successful business that lifts people out of poverty—not by giving them money but by giving them work. It’s required reading for anyone who’s passionate about solving real problems.” —Adam Grant, author of Give and Take and Originals Despite trillions of dollars in Western aid, 2.8 billion people worldwide still struggle in abject poverty. Yet the world’s richest countries continue to send money—mostly to governments—targeting the symptoms, rather than the root causes of poverty. We need a better solution. In Give Work, Leila Janah offers a much-needed solution to solving poverty: incentivize everyone from entrepreneurs to big companies to give dignified, steady, fair-wage work to low-income people. Her social business, Samasource, connects people living below the poverty line—on roughly $2 a day—to digital work for major tech companies. To date, the organization has provided over $10 million in direct income to tens of thousands of people the world had written off, dramatically altering the trajectory of entire communities for the better. Janah and her team go into the world’s poorest regions—from refugee camps in Kenya to the Mississippi Delta in Arkansas—and train people to do digital work for companies like Google, Walmart, and Microsoft. Janah has tested various Give Work business models in all corners of the world. She shares poignant stories of people who have benefited from Samasource’s work, where and why it hasn’t worked, and offers a blueprint to fight poverty with an evidence-based, economically sustainable model. We can end extreme poverty in our lifetimes. Give work, and you give the poorest people on the planet a chance at happiness. Give work, and you give people the freedom to choose how to develop their own communities. Give work, and you create infinite possibilities.
The book emphasizes the importance of studying the local context, and then considering the macroeconomic factors which may be operating upon the economy of a particular country. Five extended case studies, in the Gambia, Ecuador, Mexico, Pakistan, and the UK are examined with reference to further aspects of sustainability and impact assessment.
The theory that poverty in the world's poorest regions can be overcome through microeconomic policies is examined through case studies of seven developing countries, providing some startling conclusions.
Introduction : enfolding the poor -- Entrepreneurship and work at the "bottom of the pyramid"--Social banking to financial inclusion -- The reluctant moneylender -- The domestication of microfinance -- Financial risk and the moral economy of credit -- Insured death, precarious life
In 1997, Mexico launched a new incentive-based poverty reduction program to enhance the human capital of those living in extreme poverty. This book presents a case study of Progresa-Oportunidades, focusing on the main factors that have contributed to the program's sustainability, policies that have allowed it to operate at the national level, and future challenges.
More than one billion people still live below the poverty line – most of them in South Asia and Sub-Saharan Africa. Financial inclusion is a major issue, as more than three-quarters of the numbers of poor and disadvantaged women and men do not have access to financial products and services, such as bank accounts, affordable and suitable loans, and insurance. The key objective of this book is to provide practical case studies of financial inclusion, rather than focus on academic debates such as the ideological basis of promoting microfinance. Using the recently adopted Sustainable Development Goals as an overall framing of the issues, it shows how poor and disadvantaged women and men can be bankable if the right facilitation for maximizing opportunities and addressing constraints are in place. Case studies confirm that achieving inclusive and sustainable access to financial products and services goes beyond simply enabling poor and disadvantaged women and men to have access to credit, or the ability to open a bank account. Examples from Africa, Asia and Latin America demonstrate encouraging progress in making microcredit accessible to millions of poor people. The foremost challenge, however, has been to ensure that they have access to, and usage intensity of, suitable and affordable financial products and services that meet the needs of their livelihoods as well as risks and mitigation strategies. This requires understanding that poor and disadvantaged women and men do not exist in isolation from complex and interdependent functions in the financial system, which includes a number of actors, diversified services, constraints (not just symptoms) and capacities and incentives. Overall, the book provides a rich source of examples of how building inclusive financial systems can empower the world's poor – by increasing income and employment opportunities, securing livelihoods and reducing poverty.
Developing countries need additional, cross-border capital channeled into their private sectors to generate employment and growth, reduce poverty, and meet the other Millennium Development Goals. Innovative financing mechanisms are necessary to make this happen. 'Innovative Financing for Development' is the first book on this subject that uses a market-based approach. It compiles pioneering methods of raising development finance including securitization of future flow receivables, diaspora bonds, and GDP-indexed bonds. It also highlights the role of shadow sovereign ratings in facilitating access to international capital markets. It argues that poor countries, especially those in Sub-Saharan Africa, can potentially raise tens of billions of dollars annually through these instruments. The chapters in the book focus on the structures of the various innovative financing mechanisms, their track records and potential for tapping international capital markets, the constraints limiting their use, and policy measures that governments and international institutions can implement to alleviate these constraints.
