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| | | Title | Maccroeconomic Challenges of Microfinance | | Author | Sebastian Dullien | | Subject | Financial Sector Development | | Date of Publication | 2011 | | Publisher | Economic Policy Research Centre (EPRC) | | Number of Pages | 04 pages | | Language | English | | Geographical Coverage | Africa, Uganda | | Keywords | Macroenomic, Microfinance, Interest rates, Investment | | Abstract | Microfinance has been one of the boom sectors in development cooperation over the past years. At times, it was almost seen as a panacea for development. After a number of large-scale projects had failed over the 1960s and 1970s, microfinance was seen to have a number of advantages over traditional approaches of official development aid: First, as funds were disbursed at a decentralized level, political economy problems of planning and implementing projects centrally should be avoided. Second, as a microcredit is to be seen different from a grant, but has to be repaid, it was assumed to motivate people who had remained mostly passive to take the initiative themselves. Third, as a market-based instrument, it was hoped to create entrepreneurial spirit in the population which might trigger a sustained increase in economic activity. | | Copyright Holder | Economic Policy Research Centre (EPRC) | | Copyright URL | http://www.eprc.or.ug | | Filesize | 824518 MB | | File Format | PDF | | [ View / download original document ] |
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