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Author Wright, Graham A. N.
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Microfinance Service ♦ Significant Difference ♦ Prevalent Emphasis ♦ Informal Sector Employment ♦ Income Impact ♦ Diversified Source ♦ Vice Versa ♦ Development Programme ♦ Exploitative Employment ♦ Microfinance Programme ♦ Home-based Income ♦ Catastrophic Income Loss ♦ Reasonable Level ♦ Central Objective ♦ Right Economic Condition ♦ Much Emphasis ♦ Tomorrow Poorest ♦ Poor Place
Abstract When examining the income impacts of Microfinance programmes, it is important to recognise that there is a significant difference between “increasing income ” and “reducing poverty”. Despite the prevalent emphasis on raising incomes as the central objective of development programmes, the two are not synonymous. Clearly, the use to which income is put is as important in determining poverty and welfare as the level of income itself- increased income can be (and often is) gambled away. It is also important to recognise that poverty is neither linear nor static, and that today’s not-so-poor may well be tomorrow’s poorest- and vice versa. It is for this reason that the poor place so much emphasis on diversifying their sources of income- it reduces their exposure to catastrophic income loss. Finally, in the context of the drive to create businesses that provide jobs, the differences between the quality of formal and informal sector employment must be noted. These differences also explain why, for many, having diversified sources of home-based income is preferable to depending on exploitative employment. It is clear that, given the right economic conditions, (reasonable levels of inflation, access to markets etc.), well designed Microfinance services can reduce poverty2.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Publisher Date 1999-01-01