Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment, or 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 US$38 billion. Grameen Bank reports that repayment success rates are between 95 and 98 percent.
Microfinance is a category 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 poorer population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient.
Grameen Bank is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans to the impoverished without requiring collateral.
Muhammad Yunus is a Bangladeshi social entrepreneur, banker, economist and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance. These loans are given to entrepreneurs too poor to qualify for traditional bank loans. Yunus and the Grameen Bank were jointly awarded the Nobel Peace Prize "for their efforts through microcredit to create economic and social development from below". The Norwegian Nobel Committee said that "lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty" and that "across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development". Yunus has received several other national and international honours. He received the United States Presidential Medal of Freedom in 2009 and the Congressional Gold Medal in 2010.
BRAC is an international development organisation based in Bangladesh. In order to receive foreign donations, BRAC was subsequently registered under the NGO Affairs Bureau of the Government of Bangladesh. BRAC is the largest non-governmental development organisation in the world, in terms of number of employees as of September 2016. Established by Sir Fazle Hasan Abed in 1972 after the independence of Bangladesh, BRAC is present in all 64 districts of Bangladesh as well as 11 other countries in Asia, Africa, and the Americas.
Self-Employed Women's Association (SEWA), meaning "service" in several Indian languages, is a trade union based in Ahmedabad, India, that promotes the rights of low-income, independently employed female workers. With over 1.6 million participating women, SEWA is the largest organization of informal workers in the world. Self-employed women are defined as those who do not receive a salary like that of formally-employed workers and therefore have a more precarious income and life. SEWA is framed around the goal of full employment in which a woman secures for her family: income, food, health care, child care, and shelter. The principles behind accomplishing these goals are struggle and development, meaning negotiating with stakeholders and providing services, respectively.
The United Nations Stabilisation Mission in Haiti, also known as MINUSTAH, an acronym of the French name, was a UN peacekeeping mission in Haiti that was in operation from 2004 to 2017. The mission's military component was led by the Brazilian Army and the force commander was Brazilian. The force was composed of 2,366 military personnel and 2,533 police, supported by international civilian personnel, a local civilian staff and United Nations Volunteers.
The non-governmental organisation based in Bangladesh which provides microcredit financing.
The Institute for Justice & Democracy in Haiti (IJDH) is a non-profit organization based in Boston, Massachusetts, USA that seeks to accompany the people of Haiti in their nonviolent struggle for the consolidation of constitutional democracy, justice and human rights. IJDH distributes information on human rights conditions in Haiti, pursues legal cases in Haitian, U.S. and international courts, and promotes grassroots advocacy initiatives with organizations in Haiti and abroad. IJDH was founded in the wake of the February 2004 coup d'état that overthrew Haiti's elected, constitutional government. The institute works closely with its Haitian affiliate, the Bureau des Avocats Internationaux (BAI).
LAPO is a Nigerian organisation with a microfinance bank dedicated to self-employment through microfinance and an NGO, a non-governmental, non-profit community development organization focused on the empowerment of the poor and the vulnerable.
Microcredit Regulatory Authority (MRA) is the central body to monitor and supervise microfinance operations of non-governmental organizations of the Republic of Bangladesh. It was created by the Government of People's Republic of Bangladesh under the Microcredit Regulatory Authority Act. License from the Authority is mandatory to operate microfinance operation in Bangladesh as an NGO.
Mario Joseph is a Haitian human rights lawyer. Since 1996, he has led the Bureau des Avocats Internationaux (BAI) in Port-au-Prince, which represents political prisoners, impoverished communities, and victims of political violence. In 2006, The New York Times called Joseph "Haiti's most prominent human rights lawyer".
Fonkoze is Haiti's largest microfinance institution serving the poor and ultra-poor in Haiti, with 44 branches located throughout the country. The name Fonkoze is an acronym for the Haitian Creole phrase "Fondasyon Kole Zepòl" meaning "Shoulder-to-Shoulder Foundation." Its mission is to empower Haitians, primarily women, with financial and development services to lift themselves out of poverty. Fonkoze's development programs include Adult Education, Ultra-Poverty Alleviation and Boutik Sante, a health program designed to create a new business opportunity for Fonkoze's existing clients while also providing much-needed health products, services and education to rural communities throughout the country. Fonkoze is a family of three organisations working together to achieve its mission:
- Fonkoze Foundation: a Haitian non-profit which provides development services such as health education, literacy and business skills training to Fonkoze's microfinance clients and to ultra-poor families.
- Fonkoze Financial Services: a Haitian microfinance company with a double bottom line: to lift families and communities out of poverty while operating in a financially self‐sustaining manner.
- Fonkoze USA, a 501(c)(3) non-profit which provides technical, communications and fundraising support in the US for its Haitian partners.
Microcredit for water supply and sanitation is the application of microcredit to provide loans to small enterprises and households in order to increase access to an improved water source and sanitation in developing countries. While most investments in water supply and sanitation infrastructure are financed by the public sector, investment levels have been insufficient to achieve universal access. Commercial credit to public utilities was limited by low tariffs and insufficient cost-recovery. Microcredits are a complementary or alternative approach to allow the poor to gain access to water supply and sanitation.
Brian Concannon, Jr. is a human rights lawyer and foreign policy advocate. He is the Executive Director of Project Blueprint, which works for a human rights-based US foreign policy by bringing the perspectives of people abroad impacted by US policies into policy discussions and advocacy. Concannon founded the Institute for Justice & Democracy in Haiti (IJDH) and was Executive Director from 2004-2019. Concannon also serves as a member of the Editorial Board of Health and Human Rights: An International Journal at the Harvard School of Public Health, and is a contributor to the Quincy Institute for Responsible Statecraft blog. He is an alumnus of Boston College High School'81, as well as an Ignatius Award winner. He holds an undergraduate degree from Middlebury College and JD from Georgetown Law. He is the recipient of the Wasserstein Public Interest Fellowship from Harvard Law School the Brandeis International Fellowship in Human Rights, Intervention, and International Law and an Honorary Doctorate of Humane Letters from Canisius College. Brian has qualified as an expert witness on country conditions Haiti in over 40 cases in the U.S. and Canada, appearing on behalf of both applicants and the U.S. government.
Travis Rejman is the American Co-Founder and Executive Director of The Goldin Institute, a Chicago-based non-profit organization that works to foster global grassroots partnerships for sustainable change.
Relief International is a humanitarian non-profit agency that provides emergency relief, economic rehabilitation, development assistance, and programme services to vulnerable communities worldwide. Relief International UK is non-political and non-sectarian in its mission. It is based in Washington, D.C. and in London.
The impact of microcredit is a subject of much controversy. Proponents state that it reduces poverty through higher employment and higher incomes. This is expected to lead to improved nutrition and improved education of the borrowers' children. Some argue that microcredit empowers women. In the US and Canada, it is argued that microcredit helps recipients to graduate from welfare programs. Critics say that microcredit has not increased incomes, but has driven poor households into a debt trap, in some cases even leading to suicide. They add that the money from loans is often used for durable consumer goods or consumption instead of being used for productive investments, that it fails to empower women, and that it has not improved health or education.
Gender inequality has been improving a lot in Bangladesh, inequalities in areas such as education and employment remain ongoing problems so women have little political freedom. In 2015, Bangladesh was ranked 139 out of 187 countries on the Human Development Index and 47 out 144 countries surveyed on the Gender Inequality Index in 2017. Many of the inequalities are result of extreme poverty and traditional gender norms centred on a patrilineal and patriarchal kinship system in rural areas.
Development Initiative for Social Advancement is a non-governmental development organisation in Bangladesh. DISA has been working for the rural people, especially women and children of the poor households of Bangladesh with the objectives of poverty alleviation, awareness building, social violence reduction, and empowerment of women to uplift their socio-economic status with microfinance, livestock development, education, health, skill development programs, and awareness-building activities
