Faith-based Microfinance. An Alternative Tool of Poverty Alleviation

Doctoral Thesis / Dissertation , 2013 , 285 Pages , Grade: A

Sociology - Work, Education, Organisation

The poor, like others, too need financial products and services in order to build assets, manage consumption and mitigate risks. Microfinance, in recent times, has emerged as a powerful tool to provide access to some financial services to the poor. For decades, poverty alleviation has topped the International development agenda. United Nations Millennium Goals state that by 2015 the number of people living in extreme poverty should be half of what it was in 2000. Microfinance addresses the twin goals of financial inclusion and poverty alleviation in a way that builds self-esteem in the individual and self-sufficiency in the institution providing the financial services. Different models have emerged in microfinance delivery based on their clientele, focus area, interest rate, savings linkages, collateral, coverage and organizational/legal structure. With all the successes of the existing microfinance models, the herculean task of poverty alleviation still leaves enough space for innovative models.

This study explores the potential of faith-based microfinance in complimenting the efforts of poverty alleviation and also overcoming the weaknesses in the existing models. Faith-based microfinance operate on distinct principles. The purpose of this study is to focus on the functioning of the faith based microfinance and to explore its role as an alternative tool of poverty alleviation. In order to get a meaningful insight regarding the impact of faith based microfinance on the lives of the beneficiaries, it is necessary that a comparison is made to the mainstream microfinance on commonly accepted parameters of poverty alleviation.

Inhaltsverzeichnis (Table of Contents)

• ACKNOWLEDGEMENTS
• 1.1 Background to the Study
• 1.2 Research Problem, Purpose and Questions
• 1.3 Purpose of Research
• 1.4 Research Questions
• 1.5 Definitions and Key Concepts
• 1.6 Research Methodology
• 1.7 Scope of the Study and its relevance to the Management Discipline
• 1.8 Organization of the Thesis
• 2.1 Overview of Microfinance
• 2.1.1 Key Principles of Microfinance
• 2.1.2 State of the Microfinance Sector
• 2.1.3 Role of Microfinance in Financial Inclusion and Poverty Alleviation
• 2.2 Models of Microfinance intervention
• 2.2.1 The Grameen Model
• 2.2.2 Individual Banking Program
• 2.2.3 Credit Unions
• 2.2.4 Village Banking
• 2.2.5 Self Help Groups/Associations
• 2.3 Impact Assessment of Microfinance Institutions
• 2.3.1 Types of Impact Studies
• 2.3.2 Factors of Impact Assessment
• 2.4 Need for Alternative Model
• 2.4.1 Challenges Confronting Microfinance
• 2.4.2 Desired Changes in the New Model
• 2.5 Conclusion
• 3.1 General Introduction and Background of Faith-based organizations
• 3.1.1 Influence of Faith in FBOs
• 3.1.2 Organizational Characteristics
• 3.1.3 Program Characteristics
• 3.1.4 Types of FBOs
• 3.2 Significance of FBO's in development
• 3.3 Religious Faiths and Microfinance Principles
• 3.3.1 Hindu Faith and Microfinance
• 3.3.2 Christian Faith and Microfinance
• 3.3.3 Islamic Faith and Microfinance
• 3.4 Empirical studies on Faith-based Microfinance
• 3.5 List of Faith-based Microfinance Institutions

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The book aims to explore faith-based microfinance as an alternative tool for poverty alleviation. It analyzes the theoretical and practical aspects of this approach, examining the role of religious faith in shaping microfinance practices and its impact on poverty reduction.

• The influence of religious faith on microfinance practices and its potential to enhance poverty alleviation
• The characteristics and effectiveness of faith-based microfinance institutions (FBOs)
• The impact of FBOs on the lives of beneficiaries and their role in promoting social and economic development
• The ethical and social considerations related to faith-based microfinance, including issues of inclusivity and accountability
• The potential for faith-based microfinance to address the challenges faced by traditional microfinance models and contribute to a more sustainable approach to poverty reduction

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1 provides a comprehensive introduction to the study, outlining the research problem, objectives, and questions. It defines key concepts and describes the methodology employed. Chapter 2 reviews the existing literature on microfinance, exploring its principles, models, and impact on poverty reduction. It identifies challenges faced by traditional microfinance models and highlights the need for alternative approaches.

Chapter 3 delves into the role of faith-based organizations (FBOs) in development. It discusses the influence of religion on FBOs, their organizational characteristics, and the significance of their involvement in microfinance. The chapter examines the relationship between religious faiths and microfinance principles, exploring the perspectives of Hindu, Christian, and Islamic faiths. It also presents empirical studies on faith-based microfinance and provides a list of FBOs active in the field.

Schlüsselwörter (Keywords)

The key focus areas of the text are faith-based microfinance, poverty alleviation, FBOs, religious faith, microfinance principles, impact assessment, and ethical considerations. The book examines the role of faith in microfinance, the effectiveness of FBOs, and the potential of this approach to address the challenges faced by traditional microfinance models.

• Course: PhD
• Grade: A
• Author: Dr Najmul Hoda (Author)
• Publication Year: 2013
• Pages: 285
• Catalog Number: V434644
• ISBN (eBook): 9783668759848
• ISBN (Book): 9783668759855
• Language: English
• Tags: Faith-based, Microfinance, Empirical, Doctoral thesis