Foreign Aid and Microfinance: A new policy proposal for financing development
In this paper, we review and compare the potential and limitations of foreign aid and microfinance as a top-down and bottom-up approaches to financing the development process in poor countries. We not only sustain that reviewing foreign aid is a must for the future of the least-developed countries b...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universidad de Zaragoza, Cátedra de Solidaridad y Ciudadanía Global
2015-11-01
|
| Series: | Revista Iberoamericana de Estudios de Desarrollo |
| Subjects: | |
| Online Access: | http://ried.unizar.es/index.php/revista/article/viewFile/145/77 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1846091782738149376 |
|---|---|
| author | Lacalle-Calderón, Maricruz Alfonso-Gil, Javier Rico-Garrido, Silvia |
| author_facet | Lacalle-Calderón, Maricruz Alfonso-Gil, Javier Rico-Garrido, Silvia |
| author_sort | Lacalle-Calderón, Maricruz |
| collection | DOAJ |
| description | In this paper, we review and compare the potential and limitations of foreign aid and microfinance as a top-down and bottom-up approaches to financing the development process in poor countries. We not only sustain that reviewing foreign aid is a must for the future of the least-developed countries but also posit that microfinance is a complementary and financially sustainable approach that creates better incentives for development. After calculating the potential effects of microfinance over employment and GDP through a simple empirical exercise, we propose a policy recommendation of redirecting a very small share of official development aid (ODA) resources to microfinance in order to provide options for the most underprivileged populations. |
| format | Article |
| id | doaj-art-260e4aa53d9b4bdf9d5a4f0ec4bff394 |
| institution | Kabale University |
| issn | 2254-2035 2254-2035 |
| language | English |
| publishDate | 2015-11-01 |
| publisher | Universidad de Zaragoza, Cátedra de Solidaridad y Ciudadanía Global |
| record_format | Article |
| series | Revista Iberoamericana de Estudios de Desarrollo |
| spelling | doaj-art-260e4aa53d9b4bdf9d5a4f0ec4bff3942025-01-02T21:59:07ZengUniversidad de Zaragoza, Cátedra de Solidaridad y Ciudadanía GlobalRevista Iberoamericana de Estudios de Desarrollo2254-20352254-20352015-11-0142106129Foreign Aid and Microfinance: A new policy proposal for financing developmentLacalle-Calderón, Maricruz0Alfonso-Gil, Javier1Rico-Garrido, Silvia2Universidad Autónoma de MadridUniversidad Autónoma de MadridUniversidad de San Pablo CEUIn this paper, we review and compare the potential and limitations of foreign aid and microfinance as a top-down and bottom-up approaches to financing the development process in poor countries. We not only sustain that reviewing foreign aid is a must for the future of the least-developed countries but also posit that microfinance is a complementary and financially sustainable approach that creates better incentives for development. After calculating the potential effects of microfinance over employment and GDP through a simple empirical exercise, we propose a policy recommendation of redirecting a very small share of official development aid (ODA) resources to microfinance in order to provide options for the most underprivileged populations.http://ried.unizar.es/index.php/revista/article/viewFile/145/77microfinanceforeign aidfinancial development policy |
| spellingShingle | Lacalle-Calderón, Maricruz Alfonso-Gil, Javier Rico-Garrido, Silvia Foreign Aid and Microfinance: A new policy proposal for financing development Revista Iberoamericana de Estudios de Desarrollo microfinance foreign aid financial development policy |
| title | Foreign Aid and Microfinance: A new policy proposal for financing development |
| title_full | Foreign Aid and Microfinance: A new policy proposal for financing development |
| title_fullStr | Foreign Aid and Microfinance: A new policy proposal for financing development |
| title_full_unstemmed | Foreign Aid and Microfinance: A new policy proposal for financing development |
| title_short | Foreign Aid and Microfinance: A new policy proposal for financing development |
| title_sort | foreign aid and microfinance a new policy proposal for financing development |
| topic | microfinance foreign aid financial development policy |
| url | http://ried.unizar.es/index.php/revista/article/viewFile/145/77 |
| work_keys_str_mv | AT lacallecalderonmaricruz foreignaidandmicrofinanceanewpolicyproposalforfinancingdevelopment AT alfonsogiljavier foreignaidandmicrofinanceanewpolicyproposalforfinancingdevelopment AT ricogarridosilvia foreignaidandmicrofinanceanewpolicyproposalforfinancingdevelopment |