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Micro-Credit

Submitted by inkut19 on March 9, 2008

Category: Business
Words: 3531 | Pages: 15
Views: 108
Popularity Rank: 93,301
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Introduction
Created in the mid-18th century, the micro credit was developed by the Nobel Price, M,Yunus in 1976. Starting in Bangladesh, where he could improve the concept and help the local population by creating the Grameen Bank. Today this bank cover more than 7.3 million of Bangladeshi and 500 million people in the world have used a micro-credit to start a business. Microfinance is now studied in the most famous universities in the world and is recognize as a powerful tool to fight against the poverty.
We start this essay by looingk at the Europe and describe the micro-credit market and the different actors, clientsÂ…
Then we will focus on one country, France, and try to understand how the market is structured and how the different actors work. It will allow us to compare French with the other European countries.
The finish we will try to compare the initial model developed by M. Yunus in Bangladesh and the model implemented in France. Conditions of living are very different in those countries witch forced European institutions to adapt their microfinance model. By making this comparison we will try to give our recommendations to improve the actual French micro-credit model.

The Micro-credit in Europe:
The concept of micro-credit was born in the middle of the 19th century. It was really developed in 1976 to the model that we know today by M. Yanus and the origins of the Grameen Bank.
It came finally in Western Europe in the late 1980's as a tool to alleviate poverty in developing countries. The Easter Europe had to wait a decade more until the transition to the market economies. After the centrally-planned economies, a huge number of factories closed witch led to a significant growth of unemployment of urban and rural workers. As in Western Europe, the goal was to reach excluded people from financial institutions by providing them services. Moreover in Eastern Europe the priority was to create a...

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