IMPACT OF MICROFINANCING ON REDUCING POVERTY IN DEVELOPING COUNTRIES, CASE JORDAN.

MIROSLAVA ŠAFRÁNKOVÁ, JIŘÍ HAVEL

Abstract
More than half of human population in developing countries lack access to financial services from institutions , either for credit or for savings. Providing the poor with access to financial service is one of the ways to increase their incomes and productivity, therefore reducing poverty from the basic point of wiev (Robinson, 2001). Poverty in developing countries is resulting from different impacts such as low economic growth, high population growth, unequal distribution of recourses, diseases etc. Therefore it couses low productivity and unemployment of the poor. To increase the productivity of the poor by creating employment means to improve access to financial services in developing countries. In many low-income countries there is more than 70 percent of the people working in agriculture. This mostly self-employment of the poor couses rural poverty in the case of seasonal agriculture or natural disaster. Therefore also lack of savings and capital is a big problem for poor people in developing countries. Providing a credit seems to be a way to generate self-employment opportunities for the poor. And the successful way to bring it into effect is microfinance.

Key words:
microfinance, microcredit, access to financial services, poverty, developing countries

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