Views and reviews of microcredit thoughts and MFIs services in the world

Kazi Abdur Rouf
2018 International Journal of Research Studies in Management  
This paper is critically analyzing books, articles, and case studies of the course materials of the Harvard micro-financing six-week summer training program conducted at the Harvard University in 2005. All the attended trainees of this training program were the executives from different MFIs across the world. This training program orients the trainees to different micro-financing services, thoughts, financial strategies, and policies etc. in the world. The aim of this microfinance analytical
more » ... nance analytical paper is to assist readers to get an in-depth idea about microcredit different innovations, thoughts, and practices that are prevailing across the world. Although the attended trainees of the Harvard micro-financing training intensively discuss and identify MFIs problems and challenges that they are facing, very few conversations were made on how to design, develop and improve IT skills of their loan transactions, bookkeeping and monitoring devices that they are suffering from. These IT skills developments are very crucial for MFIs in order to reduce their costs and to efficiently operate their microcredit services to the poor entrepreneurs in the world and to develop their institutional sustainable capacity building. Views and reviews of microcredit thoughts and MFIs services in the world Harvard micro-financing six-week summer training program The Harvard Business School offers international microfinance training every alternative year although recently this training program is closed. My two colleagues; microcredit practitioners, attended this training program in 2005 and in 2008. I collected all scholarly articles that were used in the training program. In addition, I downloaded some more microcredit articles from 'World Development Report' publications, and 'Sage publications'. I collected three books published by Kumarian Press Inc. The books critically analyzed microcredit. The names of the books are 'The Commercialization of Microfinance: Balancing business and development'; 'The new world of microenterprise finance: Building healthy financial institutions for the poor'; and 'Saving services for the poor'. Below is the attempt to review the articles books that were used in the Harvard International Microfinance Training Program and with a goal that the above-mentioned microcredit articles and books could help readers to get an in-depth idea about different microcredit thoughts, innovations, and practices in different countries of the world. The Harvard micro-financing six-week summer training brings trainees from different MFIs practitioners across the world and orients them to different micro-financing programs, MFIs different mode of operands, different financial strategies and policies and their bookkeeping and monitoring different devices. The purpose of this training program is to share and exchange participated MFI practitioners' operational strategies and exchange views and ideas of different case studies of different MFIs presented in the training. These trainees also discuss how to solve delinquent loan portfolios. There are 32 MFIs representatives participated from across the world in this training program in 2005. All the training participants were executives of the MFIs across the world. They were both from developed and developing countries. The attended trainees themselves were the resource person for this training program because many of them relate their contextual experience in analyzing the course themes and materials from their contextual perspectives. Although there was no field trip arrangement in the program for the participants to visit MFIs for getting practical hands-on experience on good MFIs and struggling MFIs, attended trainees presented their own experiences and challenges they are facing in implementing their micro-financing programs in their communities. Views and reviews of microcredit thoughts and MFIs services in the world International Journal of Research Studies in Management 3 Issues Access to basic financial services such as credit, savings, and insurance is enhancing to develop the entrepreneurial skills and opportunities among those poor who are currently outside the banking services, financial markets, and services. Such access can promote the economic aspirations and empowerment of the poor in their own communities. Although many micro-entrepreneurs have access to microcredit for their business capital; however, many microcredit institutions have been suffering from lack of capital, legal entity, defaulter clients, operational inefficiency, and financial insufficiency. Even though MFIs main functions are for providing credit to disadvantaged micro-entrepreneurs, there are huge expectations raised for micro-borrowers to free them from capitalistic exploitation, liberated them from male chauvinism, free them from men violence, develop their citizenry development, and relief them from social injustice and environmental degradation. Many researchers raise how poor people are suffering from structural adjustment policies (SAP), globalization, consumerism, formal and informal financial market and suffering from multinational corporations' (MNCs) free trade market competitions and exploitation etc. Yes, poor people are suffering from all these social, economic and environmental anomalies; however, their micro-financing agencies are suffering from IT skills development on loan transactions, bookkeeping recording and proper IT monitoring devices. Although this paper raised these important essential points for MFIs, the researcher doesn't examine to these strategic gaps; however, he (writer of this paragraph) will use and relate micro-credit different issues mentioned in the above-stated books and piece of writings' themes in the following narratives. Views and reviews of microcredit thoughts and case study analysis
doi:10.5861/ijrsm.2018.3008 fatcat:lylzmlz7p5aqbpk5jhbevh3sdm