Microfinance and social capital in Nepal: the case for an integrated approach

Paudyal, Ratna and Abraham, Anne and Fallon, Wayne (2013) Microfinance and social capital in Nepal: the case for an integrated approach. In: 2nd International Conference of the Nepalese Academy of Management (NAM 2013): Reshaping Organizations to Develop Responsible Global Leadership, 10-12 Mar 2013, Kathmandu, Nepal.

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While microfinance is often used in developing countries as a poverty alleviation tool, many studies of microfinance programs question its effectiveness as a genuine means of alleviating poverty and developing social capital. A growing body of literature has more recently identified problems with microfinance brought about by the apparent misuse of loans by the finance recipients, pointing to recipients who have found themselves compelled to use the loan to fund necessary health care and other basic needs. Increasing evidence indicates that minimal support is not enough to assist impoverished people. This is because the causes of poverty are multidimensional and the recipients need more than finance to break the cycle of poverty. This paper proposes that, in order for microfinance to make a significant and worthwhile contribution to the lives of impoverished people and their communities, microfinance programs need to take a more holistic or integrated approach, where the provision of microfinance should support the recipient’s productive use of the loan, and their capacity to repay the loan from that productive use. This paper describes a research project that seeks to understand how the provision of integrated microfinance in Nepal could contribute to the development of social capital in that country and hence assist in overcoming poverty and its related issues.

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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Chapter 19.
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 09 Aug 2013 05:23
Last Modified: 12 Sep 2014 03:42
Uncontrolled Keywords: microfinance; integrated approach; social capital; Nepal; developing countries
Fields of Research : 16 Studies in Human Society > 1607 Social Work > 160703 Social Program Evaluation
15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
16 Studies in Human Society > 1608 Sociology > 160801 Applied Sociology, Program Evaluation and Social Impact Assessment
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified
URI: http://eprints.usq.edu.au/id/eprint/23303

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