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Micro-Credit and Good Governance: Models of Poverty Alleviation

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It has often been held that economic growth, particularly broad-based growth that leads to rising income and standards of living at all socio-economic strata, is an essential weapon against poverty in the developing world. According to conventional wisdom in development literature, as a country registers economic growth, the benefits will trickle down to even the poorest members of society. It is well-known that this has not happened and that widespread poverty persists. After decades of economic development, too much of the world's wealth is concentrated in too few hands. Instead of lessening the gap between the rich and the poor in this world, this gap has actually increased. This paper identifies two very important models for developing the economies of some Asian countries. The idea of micro-credit has caught on not only in Bangladesh but also in countries like Malaysia, the Philippines, India, China and the United States, and is a model that should be taken seriously.

Affiliations: 1: Department of Political Science National University of Singapore


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