Қалихан Эльдар 342(уск) Мicrocredit

Мicrocredit

Мicrocredit was developed by Professor of Economics Mohammad Yunus. The Professor was educated in the United States, but came from Bangladesh, one of the world's poorest countries. In 1974, Yunus joined the fight against hunger in his native country. In the course of the struggle, he discovered that even the smallest loan can play a crucial role in the survival of the poor. His first micro-loan he gave out of his own pocket to 10 women who made furniture from bamboo, the loan amount was only 27 dollars. At the same time, Yunus found that ordinary banks are not interested in issuing loans to poor entrepreneurs because of the high risks of non-repayment of borrowed funds.

In 1976, Yunus founded the Grameen Bank (sometimes referred to as the Grameen Bank), which provided micro-loans to poor Bangladeshis. Since 1976, the Bank has already issued more than 4 million loans totaling about $ 5 billion. To ensure the repayment of loans, the Bank used a system of round-Robin bail: informal groups were formed among creditors, whose members vouched for each other and supported each other. As this system has developed, Grameen Bank has developed other alternative lending schemes. In addition to micro-loans, the Bank also issued housing loans, economic and agricultural loans, engaged in venture capital, and accepted deposits.

The success of this model, introduced by Grameen, has inspired financiers from many other developing and even developed countries, including the United States. Many (but not all) micro-credit projects are specifically targeted at women, since the latter, according to the developers of such projects, suffer disproportionately from poverty and bear most of the costs of maintaining a family, especially when it comes to single-parent families. About 96 % of Grameen micro-loans were issued to women.

The Agency for microfinance Aga Khan (born. The Aga Khan Agency for Microfinance, AKAM) is another innovative organization. The Agency provides a wide range of financial services, including microinsurance, housing micro-loans, savings deposits, education and health care accounts. The Agency also offers a variety of support for micro-entrepreneurs whose business is related to the restoration of cultural values. The Agency is part of the Aga Khan development Network. Aga Khan Development Network, AKDN).

Achievements, shortcomings and prospects

According to the International Bank, there are already more than 7 thousand microfinance organizations in the world that serve about 16 million people in developing countries and third world countries. In November 2002, more than 2,000 delegates from 100 countries gathered in new York for the so-called "microcredit Summit". The summit set a goal of providing microcredit to 100 million of the world's poorest families by 2005. Support in the achievement of this goal has provided a number of prominent politicians and financial institutions. Since 2005, the UN has actively supported the micro-credit initiative.

The microcredit movement has critics who claim that some microcredit programs have excessive interest on the loan. There are also concerns that money for micro-credit will be allocated at the expense of other necessary humanitarian programs in the areas of health, education and drinking water treatment. Credit programs can help poor people improve their financial situation, but they are not able to meet the need for infrastructure and other basic social services.

Here is a summary of the problems of microcredit:

some organizations profit from micro-loans by setting excessive interest on the loan;

practice shows that microcredit does not reach the poorest;

micro loans can make borrowers dependent;

a micro-loan can give a boost to financial well-being, but without the efforts of the borrower, success can be short-lived.

Microfinance

Microfinance is a type of activity related to the provision of financial services to small business start-UPS, as a rule, and is an effective tool in achieving freer access of small businesses to sources of Finance and, most importantly, allows many start-up businesses to start their own business from scratch.

In economic theory, microfinance refers to specific financial and credit relations between financial organizations and small businesses in terms of territorial proximity and personal contact about the accumulation of financial resources and their simplified provision on the principles of: payment, short-term, repayment, trust and targeted use for the development of the economy.[1]

The goal of microfinance is to create a highly dynamic and efficient system of lending to small businesses to further stimulate the production and distribution of goods and services, as well as to help start-up entrepreneurs gain experience in generating profits and accumulating capital.

Microfinance is a flexible form of classic Bank credit that allows you to easily start a business without having a start-up capital and credit history, and also contributes to the solution of at least three tasks:

1. increasing the number of entrepreneurs;

2. the growth of tax revenues;

3. availability of credit history for further development of MP subjects through the banking sector.

Microfinance institutions provide services to entrepreneurs that complement the services of commercial banks, thereby strengthening the entire financial system. The conditions set by commercial banks are often too much for entrepreneurs (especially when it comes to securing credit). Microfinance institutions perform small-scale financial transactions with some benefit and low risk, which are not attractive to commercial banks.

Microfinance programme is carried out:

* specialized microfinance institutions that are exclusively engaged in providing loans and are financed from external sources;

* credit unions – organizations with collective membership that are established for the purpose of providing financial services to their members, and are fully or mainly funded by the equity or savings of their members. As a rule, they do not have access to external sources of funding;

* agricultural credit cooperatives - organizations with collective membership, such as credit unions, working primarily with farmers and businesses associated with agricultural production;

• entrepreneurship support fund.

Microfinance programs can be implemented through state and municipal small business support funds, which, in accordance with the current statutes of these organizations, provide small business entities with loans without obtaining a banking license.

The credit policy of microfinance institutions should be flexible and easily transformable depending on the conditions. Only in this case, the practice of microfinance will expand, and it will become the most popular and affordable tool for supporting small businesses.

General information

Contrary to popular belief, microfinance is not a purely charitable industry — it generates revenue. According to the International Bank, the average income of a large microfinance organization is 2.5% (taking into account inflation and deducting received subsidies). Yet the social function of microfinance is higher than the economic one. Microfinance helps millions of poor people around the world start their own businesses, become involved in the world of economic relations and, as a result, improve the well-being of their families and acquire some immunity to the crises that so often occur in developing countries. The microfinance industry is actively supported by the UN and non-profit organizations, although the main concern for the development of microfinance services should lie with the governments of developing countries.

History

The entire microfinance industry has grown out of microcredit. In 1976, Professor Muhammad Yunus founded the Grameen Bank. "Grameen Bank", sometimes referred to as Grameen Bank), which was engaged in issuing microcredits to poor Bangladeshis. The same year should be considered the birth year of microfinance. Much later, other financial services for poor people appeared (microinsurance, micro-payments, etc.). According to the International Bank, in 2005, there were already more than 7 thousand microfinance organizations in the world. Microfinance Institutions (MFI), which serve about 16 million people in developing countries and third world countries. Microfinance organizations in Russia, as well as all over the world, are represented by numerous organizational and legal forms. The main commercial representatives of microfinance are currently credit cooperatives. The activities of these structures in Russia are regulated By the law "on credit cooperation", adopted in July 2009.

As already mentioned, microfinance is designed for the poor. The main consumers of microfinance services are citizens of developing countries and third world countries. For example, in Nigeria, in 2008, more than 750 small regional banks providing micro-loans were registered.[2] the Majority (up to 90%) of consumers are women, because they disproportionately suffer from poverty and bear most of the costs of maintaining a family, especially when it comes to single — parent families. Microfinance services are very often used by microentrepreneurs — these are not rich people who have organized a small (often personal or family) business to provide for themselves and their relatives. The business of micro-entrepreneurs in rural areas is usually the cultivation, processing and sale of food. In the urban conditions of micro-entrepreneurs usually trade on the streets of household knick-knacks, deliver small packages, etc.

World award in the field of micro-enterprises (VPM)

In November 2004, the United Nations Capital Development Fund, the Citigroup Foundation (eng. Citigroup Foundation) and a small group of professionals and graduate students from the world's leading universities arrived at the Convention to launch a small business competition for low-income entrepreneurs. These competitions, called The program of the World awards in the field of microenterprise (eng. Global Microentrepreneurship Award (GMA) program), should pay attention to the work of poor entrepreneurs around the world.

The VPM program shows how microcredit fuels the spirit of entrepreneurship in impoverished communities around the world. The program highlights the contribution of small businesses to the economic stability of families around the world. This initiative is also intended to increase investment and improve support for microfinance from sponsors, national governments, and businesses.

A total of 8 countries participated in the World microenterprise awards in 2004, and local competitions were also held in new York. The incredible success of the first VPM Program led to the involvement of 22 more countries from all over the world, including Russia, in the next year. In Russia, awards will also be given to micro-entrepreneurs and microfinance organizations that issue micro-loans. Microfinance organizations will be able to submit applications on behalf of their clients-borrowers. At the end of the competition, valuable prizes will be awarded.