Micro Credit and Poverty Reduction in Asia

Micro Credit and Poverty Reduction in Asia Outline 1 Introduction 2 1.1 Background of Study 3 1.1.1 Issue of poverty reduction 3 1.1.2 Role of micro credit in poverty reduction 6 1.1.3 The issue should be study 10 1.2 Purpose of Study 11 1.3 Content of Study 12 2 Literature Review 13 2.1 What is micro credit 13 2.2 Lending models Micro credit 16 2.2.1 Associations 16 2.2.2 Bank Guarantees 17 2.2.3 Community Banking 17 2.2.4 Cooperatives 17 2.2.5 Credit Unions 18 2.2.6 Grameen 18 2.2.7 Group 18 2.2.8 Individual 19 2.2.9 Intermediatories 19 2.2.10 Non-Governmental Organizations 19 2.2.11 Peer Pressure 20 2.2.12 Rotating Savings and Credit Associations 20 2.2.13 Small Business 20 2.2.14 Village Banking 21 2.3 Characteristics and recent successes of micro credit 21 2.4 Micro credit impact studies 25 2.5 Summary of this section 28 3 Evaluation of micro credit in Asia 29 3.1 Some features of micro credit in Asia 29 Micro Credit and Poverty Reduction in China 1 Introduction In the first paragraph, we mainly give a brief introduction of what is micro credit and what is the relationship between micro credit and poverty reduction. Over the past two decades micro credit programs have emerged as one of the leading strategies in the overall movement to reduce poverty. The idea began when Bangladeshi economist Professor Mohammad Yunus first demonstrated that poor people, especially poor women, could produce near-perfect repayment rates. Since then, his innovative scheme has attracted a range of non-governmental and state-sponsored institutions that today reach over 16 million people in developing countries and have a total portfolio of $US 2.5 billion! Micro credit is a credit manner essentially, but it is focused attention upon the public just because of solving the credit service to the poor successfully and achieving the persistent development to the credit institution. Nowadays, using micro credit to reduce poverty is evolved to a revolution in the poverty reduction field. Micro credit was achieved a flying development in the developing country and developed country. Although some scholars (Adams & von Pischke, 1992; Buckley, 1997; Montgomery, 1996; Rogaly, 1996; Wood & Sharrif, 1997，Moduch，1998) were doubtful of whether micro credit can reduce poverty, but it is a fact that micro credit was sung high praise for in the all world (no other poverty reduction manner received such high attention).