Microfinance At The 2016 China International Microfinance Summit

1379 Words Dec 10th, 2016 6 Pages
Once again, the discussion of microfinance bursts into the spotlight. At the beginning of December, 500 microfinance practitioners, regulators, associations, experts and journalists from eight countries gathered in Beijing, China, to discuss the prospect of microfinance at the 2016 China International Microfinance Summit. Themed Openness and Inclusion, the Summit gave high acknowledgment to microfinance as a method of helping individuals to lift themselves out of poverty. Can microfinance aid poverty reduction? This question is asked so many times in different occasions. After decades of debate, experiment and research, the answer becomes clearer. Financial inclusion is only a part of the remedy for alleviating poverty, but not all of it. It’s time to abolish superstition for the miracle of microfinance, but at the same time, realistically utilize it as a stepping stone for greater progress.
Microfinance was first introduced by Bangladeshi economist Dr. Muhammad Yunus in the 1970s and since then created a growing industry. It started as a narrow definition of microcredit. Yunus believes that basic access to capital can result in a longed boost to the standard of living of those living below the poverty line in backward communities in developing nations. The microcredit can deliver them new impetus and opportunities to provide a decent education for their children or start to run a small business, which will benefit their long-term well-being. The concept, in particular…

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