Micro Credit

Topics: Microfinance, Microcredit, Muhammad Yunus Pages: 3 (1037 words) Published: June 5, 2013
Women on every part of the world at one point or another have had to deal with discrimination due to fact that they are women. Unfortunately there are some countries where women suffer this injustice to a whole other level to the point where they cannot even provide for their family because they cannot attain a job or develop their own business due to lack of sufficient funds. It is because of this vicious cycle of poverty that programs such as structural adjustment and microcredit were created in order help out the poor but surprisingly it is women who have taken the most advantage of these programs, even if only one of them truly helps them out. The way I would define structural adjustment programs is as a program that wanted to establish political reforms to help the domestic economy be more competitive in the global market. As for microcredit it is defined as a non-profit banking system that loans out small amounts of money to the poor that cannot offer up any collateral for a traditional bank loan. The structural adjustment programs were pushed by international lending agencies such as the International Monetary Fund. Microcredit programs were established by Muhammad Yunus in his hometown Bangladesh. It is believed that both of these programs are made to help out these countries but one of them actually ended up doing more damage. The International Monetary Fund advanced loans to countries only when they could meet certain conditions that in theory would reduce trade barriers and stimulate economic growth. Such conditions were reduced social expenditures, resource extraction, opening of domestic markets to foreign investments. In reality SAPs wanted decreased government intervention in the economy and for an embrace of global free market forces. The results of these reforms for many of the countries actually resulted in them falling deeper into debt without experiencing the satisfaction of economic growth. When Yunus came across the many impoverished women...

Bibliography: Drolet, Julie. "Women, Micro Credit And Empowerment In Cairo, Egypt." International Social Work 54.5 (2011): 629-645. Academic Search Premier. Web. 4 Dec. 2012.
Toma, Micheal. “Induced Structural Adjustment Programs and Women in Ecuador” Armstrong Atlantic State University 99.4 (2008). Academic Search Premier.Web.4 Dec.2012.
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