Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment, and a verifiable credit history. It is designed to support entrepreneurship and alleviate poverty. Many recipients are illiterate, and therefore unable to complete paperwork required to get conventional loans. As of 2009 an estimated 74 million people held microloans that totaled nearly US$40 billion. Grameen Bank reports that repayment success rates are between 95 and 98 percent. The first economist who had invented the idea of micro loans was The Very Reverend Jonathan Swift in the 1720’s. Microcredit is part of microfinance, which provides a wider range of financial services, especially savings accounts, to the poor. Modern microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983 by their current Chief Adviser Muhammad Yunus. Many traditional banks subsequently introduced microcredit despite initial misgivings. The United Nations declared 2005 the International Year of Microcredit. As of 2012, microcredit is widely used in developing countries and is presented as having "enormous potential as a tool for poverty alleviation."
Microfinance consists of financial services targeting individuals and small businesses who lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems, among other services. Microfinance services are designed to reach excluded customers, usually low income population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient. ID Ghana is an example of a microfinance institution.
Grameen Bank is a microfinance specialized community development bank founded in Bangladesh. It provides small loans to the impoverished without requiring collateral.
A micro-enterprise is generally defined as a small business employing nine people or fewer, and having a balance sheet or turnover less than a certain amount. The terms microenterprise and microbusiness have the same meaning, though traditionally when referring to a small business financed by microcredit the term microenterprise is often used. Similarly, when referring to a small, usually legal business that is not financed by microcredit, the term microbusiness is often used. Internationally, most microenterprises are family businesses employing one or two persons. Most microenterprise owners are primarily interested in earning a living to support themselves and their families. They only grow the business when something in their lives changes and they need to generate a larger income. According to information found on the Census.gov website, microenterprises make up 95% of the 28 million US companies tracked by the census.
The Orangi Pilot Project collectively designates three Pakistani non-governmental organisations working together, having emerged from a socially innovative project carried out in 1980s in the squatter areas of Orangi, Karachi, Pakistan. It was initiated by Akhtar Hameed Khan and implemented by Perween Rahman. Innovative methods were used to provide adequate low cost sanitation, health, housing and microfinance facilities.
Aga Khan Agency for Microfinance (AKAM) is a microfinancing agency of the Aga Khan Development Network.
The Association for Social Advancement is a non-governmental organisation based in Bangladesh which provides microcredit financing.
Drinking water and sanitation in Nicaragua are provided by a national public utility in urban areas and water committees in rural areas. Despite relatively high levels of investment, access to drinking water in urban areas has barely kept up with population growth, access to urban sanitation has actually declined and service quality remains poor. However, a substantial increase in access to water supply and sanitation has been reached in rural areas.
Village banking is a microcredit and saving methodology whereby financial services are administered locally in a community bank rather than in a centralized commercial bank. Village banking has its roots in ancient cultures and was most recently adopted for use by micro-finance institutions (MFIs) as a way to control costs. Early village banking methods were innovated by Grameen Bank and then later developed by groups such as FINCA International founder John Hatch. Among US-based non-profit agencies there are at least 31 microfinance institutions (MFIs) that have collectively created over 800 village banking programs in at least 90 countries. And in many of these countries there are host-country MFIs—sometimes dozens—that are village banking practitioners as well. The latest developments globally can be seen in Southeast Asia, where digitization is pacing fast to reach rural areas with hybrid on- and offline solutions.
In 2020, 97.7% of Indians had access to the basic water and sanitation facilities. India faces challenges ranging from sourcing water for its megacities to its distribution network which is intermittent in rural areas with continuous distribution networks just beginning to emerge. Non-revenue water is a challenge.
Access to water supply and sanitation in Ethiopia is amongst the lowest in Sub-Saharan Africa and the entire world. While access has increased substantially with funding from foreign aid, much still remains to be done. Some factors inhibiting the achievement of these goals are the limited capacity of water bureaus in the country's nine regions, two city administrations and water desks in the 770 districts of Ethiopia (woredas); insufficient cost recovery for proper operation and maintenance; and different policies and procedures used by various donors, notwithstanding the Paris Declaration on Aid Effectiveness.
The water supply and sanitation sector in Ghana is a sector that is in charge of the supply of healthy water and also improves the sanitation of water bodies in the country.
Bangladesh is faced with multiple water quality and quantity problems along with regular natural disasters, such as cyclones and floods. Available options for providing safe drinking water include tubewells, traditionally dug wells, treatment of surface water, desalination of groundwater with high salinity levels and rainwater harvesting.
Drinking water supply and sanitation in Pakistan is characterized by some achievements and many challenges. In 2020, 68% Pakistanis, 72% Indians, 54% Bangladeshi had access to the basic sanitation facilities. Despite high population growth the country has increased the share of the population with access to an improved water source from 85% in 1990 to 92% in 2010, although this does not necessarily mean that the water from these sources is safe to drink. The share with access to improved sanitation increased from 27% to 38% during the same period, according to the Joint Monitoring Program for Water Supply and Sanitation. There has also been considerable innovation at the grass-root level, in particular concerning sanitation. The Orangi Pilot Project in Karachi and community-led total sanitation in rural areas are two examples of such innovation.
Water supply and sanitation in Mozambique is characterized by low levels of access to at least basic water sources, low levels of access to at least basic sanitation and mostly poor service quality. In 2007 the government has defined a strategy for water supply and sanitation in rural areas, where 62% of the population lives. In urban areas, water is supplied by informal small-scale providers and by formal providers.
Water supply and sanitation in Senegal is characterized by a relatively-high level of access compared to most of sub-Saharan Africa. A public–private partnership (PPP) has operated in Senegal since 1996, with Senegalaise des Eaux the private partner. SDE does not own the water system, but manages it on a 10-year lease from the Senegalese government. Between 1996 and 2014, water sales doubled to 131 million cubic meters per year; the number of household connections increased by 165 percent, to over 638,000. According to the World Bank, "The Senegal case is regarded as a model of public-private partnership in sub-Saharan Africa". A national sanitation company is in charge of sewerage, wastewater treatment and stormwater drainage, which is modeled on the national sanitation company of Tunisia and is unique in sub-Saharan Africa.
Water supply and sanitation in Kenya is characterised by low levels of access to water and sanitation, in particular in urban slums and in rural areas, as well as poor service quality in the form of intermittent water supply. Seasonal and regional water scarcity in Kenya exacerbates the difficulty to improve water supply.
Water supply and sanitation in Burkina Faso are characterized by high access to water supply in urban areas, while access to an at least basic water sources in rural areas – where three quarters of the population live – remains relatively low. An estimated one third of water facilities in rural areas are out of service because of a lack of maintenance. Access to at least basic sanitation lags significantly behind access to water supply.
Responsibility of water supply in Nigeria is shared between three (3) levels of government – federal, state and local. The federal government is in charge of water resources management; state governments have the primary responsibility for urban water supply; and local governments together with communities are responsible for rural water supply. The responsibility for sanitation is not clearly defined.
Kashf Foundation is a non-profit organization, founded by Roshaneh Zafar in 1996. Kashf is regarded as the first microfinance institution (MFI) of Pakistan that uses village banking methodology in microcredit to alleviate poverty by providing affordable financial and non-financial services to low income households - particularly for women, to build their capacity and enhance their economic role. With headquarters in Lahore, Punjab, Kashf have regional offices in five major cities and over 200 branches across Pakistan.
