Do Microcredits offer a practicable solution for sustainable growth in the economies of developing countries?

Do Microcredits offer a practicable solution

for sustainable growth

in the economies of developing countries?

2

Contents

Tables ........................................................................................... 4

  Abbreviations  5

1.  Characterisation of the Problem  6

1.1.  Do not measure a country by its income alone  7

1.2.  Growth vs Development  7

2.  Governmental Options to form a Generative Economical  

  Environment  8

2.1.  Monetary Policy  8

2.2.  Role of Central Banks  9

2.3.  Exchange Rates  9

3.  Microcredits  10

3.1.  Origin and Development  11

3.2.  Function  12

3.3.  Micro Financial Establishments  12

3.4.  Downsides of Microcredits  13

4.  Summary  14

5.  Bibliography  15

6.  Appendices  17

  3  

Tables

Table 1:  Less Developed Countries (LD)C 6  

Table 2:  Causes of dollarization 10  

Table 3:  The main aims of Microcredits 12  

  4  

Abbreviations

ADB Asian Development Bank

DEG Deutsche Entwicklungsgesellschaft

EBRD European Bank for Reconstruction and Development

EUR Euro

FAO Food and Agriculture Organisation of the United Nations

GBP Great British Pound

IFC International Finance Corporation

IFPRI International Food Policy Research Institute

IMF International Monetary Fund

KFW Kreditanstalt für Wiederaufbau – German Bank for

Reconstruction and Development

LCD Less Developed Countries

LLDC Least Developed Countries

PPP Purchasing Power Paritie

SEDF Soros Economic Development Fund

UNO United Nations Organisation

USD United States Dollar

5