A Proposal for Sustainable Development through Microfinance

Recommendations for achieving sustainable development through microfinance The following proposal comprehensively summarizes the history of the microfinance industry, particularly its success and failure, as a model for developing sustainable microfinance initiatives Thing. The core of this comprehension is the analysis of the strengths and weaknesses, challenges and opportunities and characteristics of three well-managed microfinance institutions ("MFI"). Grameen Bank ("Grameen"), Compartamos and the Friendship Bridge ("Friendship").

Today, sustainable development is one of the biggest challenges. The microfinance development tool advocates sustainable development as a recognition of empowerment. It is difficult to obtain clear financial services for microfinance services, and the major banking industry has been ignored. They have to lack the commercial banking industry, the lack of educational services, and the lack of collateral for remote residents. It began in the 1970s and has grown at a rate of 7% for the fourth year in a row, like many different nonprofit organizations (Pakistan Times, 2007). 150,000 people live in Pakistan (2006), accounting for 65%, living in rural areas. This region is a relatively high peak, with GDP per capita (840 dollars) and human development index (HDI) (the outcome of the 2006 human development report).

The origins of Pakistan's microfinance department are derived from rural development projects. The development model of Agha Khan rural support program is used in Pakistan. While alleviating poverty, Pakistan's microfinance is seen as an important tool for giving women the power. Microfinance has proved to be an effective means to reduce poverty and generate employment prospects. With the support of the Asian Development Bank, the Republican Party has developed a comprehensive microfinance department development plan to expand the microfinance sector. This includes establishing a conducive policy environment, developing appropriate financial infrastructure, promoting and strengthening microfinance institutions, building collaboration with NGOs and community organizations, investing in social capital, developing risks and institutions of poor households . .

The concept of Islamic microfinance is used to meet the needs of microfinance in developing countries. It is recommended to use different Islamic financial models for microfinance activities to help poor people improve their lives and launch small and medium enterprises and promote overall economic growth . According to the modern legacy system Luxembourg, it shows that it is inefficient for reducing world poverty. Islamic microfinance is in a new stage and may face challenges in meeting the needs of European customers