Top PDF Integrated Waqf-Islamic Microfinance Model (IWIMM) for poverty reduction: case studies of Nigeria, the Sudan and Pakistan

Integrated Waqf-Islamic Microfinance Model (IWIMM) for poverty reduction: case studies of Nigeria, the Sudan and Pakistan

Integrated Waqf-Islamic Microfinance Model (IWIMM) for poverty reduction: case studies of Nigeria, the Sudan and Pakistan

 Government’s fiscal policies have kept special allocation for poverty alleviation, “spending that benefits the poor more than the non poor; spending that actually reaches the poor and spending to have an impact on the welfare of the poor over time” (Ministry of Finance and National Economy).

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Integrated waqf based islamic microfinance model (IWIMM) for poverty alleviation in OIC member countries

Integrated waqf based islamic microfinance model (IWIMM) for poverty alleviation in OIC member countries

Poverty dominates the agenda of developing countries. Poverty was and still is one of the major impediments of human progress and societal development. Its existence is as old as human history while its alleviation is attributed to effective and successfull economic policies. Various approaches/policies are offered towards reducing poverty. These policies vary depending on time, space and the country concernced. However, reduction of poverty the major goal of many economic systems as stated by the Millenium Development Goals, thought sometimes not explicitly stated It was found that in OIC member countries religious and cultural norms drive preference of Islamic microfinance over conventional microfinance.The study further developed an Integrated waqf based Islamic micrfinance model (IWIMM) for poverty reduction in OIC memebr countries.This is expected to overcome the challenges of conventional microfinance such as, high cost of capital, low quality of human resource, vulnerabilites of poor borrowers due to lack of sustainable takaful and limited products for the clients with different occupationanl backgrounds. However, the model is yet to be verified empirically. Thus, further studies should be conducted to test the model using quantitative techniques such as, structural equation modelling (SEM). © IDOSI Publications, 2014.
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Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh

Integration of waqf-Islamic microfinance model for poverty reduction: the case of Bangladesh

Hasan (2010) develops the idea of an integrated model that combines IsMF with zakah and awqaf institutions for poverty alleviation. First, zakat fund will be given to the borrowers (hard-core poor) for their consumption need whereas the awqaf fund will be used as investable fund that will work as capital investment and working capital for micro-business. It will minimize the risk of loan default as the consumption needs of the poor borrowers have already been satisfied. One of the characteristics of this model is that it will ensure the equitable distribution of income and welfare for the poor. As the proposed model is fully based on profit-loss-sharing and concessional contract modes, the distribution of profit or earnings will be allocated as per the contribution of capital among the depositors, shareholders and investors in the NGO. Furthermore, the burden of debt is less on the poor under this model, as the provision of zakat fund does not require any repayment. As the model is based on profit–loss-sharing principle, no fixed interest payment will be imposed on the borrowers. It is argued that all these factors will lower the chances of default rates and thus contribute to higher success rate of poverty alleviation.
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Microfinance and Poverty Reduction in Ghana.  The Case of Central Region of Ghana

Microfinance and Poverty Reduction in Ghana. The Case of Central Region of Ghana

The concept of Microfinance is not new in Ghana according to Asiamah & Osei(2007), Amoah(2008). Traditionally Ghanaians have saved with and taken loans from individuals and groups within the context of self-help to start businesses or farming ventures. According to available evidence the first credit union in Africa was established in Northern Ghana in 1955 by the Canadian catholic missionaries; and also susu which is one of the microfinance methodologies, is thought to have originated from Nigeria and spread to Ghana in the early 1990s (Amoah,2008; Asiamah & Osei,2007). The main goal of Ghana’s Growth and Poverty Reduction Strategy (GPRSII) is to ensure sustainable equitable growth, accelerated poverty reduction and the protection of the vulnerable and excluded within a decentralized, democratic environment. According to the 2000 population and Housing Census, 80% of the working population in Ghana is found in the private informal sector. This group is characterized by lack of access to credit, which constrains the development and growth of that sector of the economy (Ghana Microfinance Policy, 2006). In agrarian economies, gains arise when poor farmers have access to credit and technical knowhow, when they have social safety nets like income support and when food aid is targeted
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Microfinance Institutions (MFIs) and rural poverty reduction in the Eastern Cape Province South Africa: a case of Amathole Rural District

Microfinance Institutions (MFIs) and rural poverty reduction in the Eastern Cape Province South Africa: a case of Amathole Rural District

Helms (2006), argues that the commercialization of NGOs in microfinance industry has led to mission drift, meaning that they are abandoning their traditional clients who are the rural poor. When NGOs change their practice to become commercial, they become regulated financial institutions. Profitability is the driving factor of all licensed financial institutions. But the question that one may ask is that, ‘can MFIs really reach the very poor people and able to continue operating at a profit? According to the World Bank (2008), efficient, well functioning financial systems are crucial in channeling funds into productive use and allocating risks to those who can best bear them. This would in turn boost economic growth, improve opportunities and income distribution and the reduction of poverty. For this reason, development practitioners have become more convinced with the financial systems approach (Hamada, 2010). With the financial systems approach, financial assets that are issued to the poor people, are not meant for consumption but should be used for entrepreneurial purposes. This is one of the most sustainable strategy in eradicating poverty as it discourages the use of the all of the financial assets for consumption but for business investments. Consumption should come from the proceeds of the entrepreneurial investments by the poor and should not be the primary function of micro-loans. It is difficult to totally dismiss the fact that whenever the rural poor gets the financial assets from the MFIs, they will be compelled to use them in order to meet their basic daily needs which include food and medical emergencies as mentioned by Cons and Paprocki (2008).
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Conceptual pluralism in the understanding of poverty: a case study of Nigeria.

Conceptual pluralism in the understanding of poverty: a case study of Nigeria.

The above view of Anderson et al. (2007) runs contrary to the opposing view, that there exists only one rational and reasonable system in forestry management and rural development, as posited and upheld by government forest service actors alone. The government actors in America tend to impose their own conception of natural resource management on other actors. This initiated the urgent need to consider pluralism in sustainable forestry and rural development, and to give recognition to the growing numbers of organisations and institutions, whose influences are being felt in sustainable forestry management (FAO, 1997). The report argues further that the reason for pluralism in the understanding of sustainable forestry and rural development might be based on an appreciable range of political, economic and social interests shown by different actors, groups and stakeholders (FAO, 1997). Equally, in Agricultural Extension reviews and analysis of Vietnam’s Mekong Delta, Christoplos (1995) stressed the importance of pluralism in the concept of ‘extension’ within the management of this natural resource. Extension, explained Christoplos (1995:3), is one of the forums through which governmental and non-governmental agencies come together to meet with the farmers, take decisions on the management of natural resources and address other issues, such as poverty alleviation, gender inequality, sustainable environment among others. This has given rise to complex and turbulent environmental and social conditions as a result of pluralism, thus raising an important question of how an agency can strategically work with a myriad of organisations, institutions and individuals that provide services and other information to the farmers (Christoplos, 1995:4).
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The Impact of Nigeria Microfinance Banks on Poverty Reduction: Imo State Experience

The Impact of Nigeria Microfinance Banks on Poverty Reduction: Imo State Experience

This paper attempts to provide a critical appraisal of the debate on the effectiveness of microfinance as an effective tool for eradicating poverty and also the history of microfinance banks in Nigeria. It argues that while microfinance has developed some innovative management and business strategies, its impact on poverty reduction remains in doubt. Micro finance impact on poverty reduction in Imo state was studied by a stratified sampling method in the selection of the customers. The study area was divided into 16 sample units based on the various local government areas in Imo state. Four (4) MFBs were purposefully selected from each of the 3 Senatorial Zones, making a total of 12 MFBs. In order to have unbiased selection of samples, Three Hundred and eighty two questionnaires (382) were randomly distributed to customers of these selected microfinance Banks in the three senatorial Zones as follows, namely: Owerri (82), Okigwe (100) and Orlu (200). The result revealed that majority of respondents were male constituting about 78 % while women 22 % and majority of the respondents were married (65 %), single (33 %) divorced (2 % ). 137 of the respondents do not have any formal education, 67 possess primary school leaving certificate. 81 indicated having secondary school certificate. 71 with diploma / NCE and its equivalent. 28 of them have first degree certificate and above representing 36 %, 17 %, 21 %, 19 % and 7 % respectively. The monthly income brackets of the respondents show that One hundred and eleven (111) respondents (29 %) indicated earning N10,000 N15,000, 95 respondents or 25 % indicated N15,001 – N20,000 as their income bracket, 94 or 24 % were earning above N20,000, while 84 (22 %) indicated earning below N10,000. From the result, high income class has more capacity to save than poor dwelling in rural areas. The finding appears to support the predication of Economics theory of savings which argues that saving is a function of the level of income. The implication of this study is that the federal government of Nigeria and financial institutions in the country should take up the challenge of establishing bank branches in the rural areas or make formidable arrangement for supplying more credit to the rural dwellers.
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Impact of Microfinance on Poverty Reduction: A Case Study of District Faisalabad

Impact of Microfinance on Poverty Reduction: A Case Study of District Faisalabad

Economic survey of Pakistan (2009-2010) defines the term poverty as” insufficient necessities for well being resolute by the national poverty line. World bank that is considered as famous income based measure define the term poverty as” a person less than $1is considered as “very poor” and earning between $1 and $2 per day is “ poor” and person that earns more than $2 is considered as non-poor (UNCDF, 2004). Study of Banerjee &Duflo (2007) highlights the living style of the poor. They conducted their research in 13 different countries including Pakistan and stated that in ordinary poor families there is a tendency with respect to more family members. Spending on foods seemed to be a greater portion of monetary expenses in poor families. Health issues are also high in poor families that are truly due to the lack of fresh diet. Only 2 percent of the total budget is being spent on the education while in Pakistan this ratio is little bit high with 1 percent (Banerjee & Duflo, 2007). In Pakistan there are only 4 percent of families that live in their houses to other work locations.
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Microfinance: A Tool for Poverty Reduction?

Microfinance: A Tool for Poverty Reduction?

Morduch (1998) refutes Pitt and Khandker’s main argument, stating, “borrowers’ self-employment activities rarely generates jobs for others” and “…no evidence was found to support claims that the programs increase consumption levels” (Morduch, 1999, pp. 1610; 1998, pp. 30). Morduch does agree with Pitt and Khandker’s assertion that microfinance provides consumption-smoothing effects. Consumption smoothing means that although neither consumption nor income may increase, borrowers have a better balance of spending and saving during different seasons of the year. Since the poor are highly susceptible to seasonal changes 9 consumption-smoothing allows them to better withstand economic shocks such as natural disasters, health care costs etc. Importantly, “benefits from risk reduction may be as important (or more important) than direct impacts on average levels of consumption” (Morduch, 1999, pp. 1606).
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Impact of Microfinance on Poverty Reduction in Ethiopia:  Case of Omo Microfinance in Hosana Town

Impact of Microfinance on Poverty Reduction in Ethiopia: Case of Omo Microfinance in Hosana Town

help in reducing the output bias using matching algorisms and also help to see the only effect of program intervention among the participant. Though, comprehensive impact assessment research has not yet been conducted to prove it in study area. The central question is thus, is it OMFIs have impact on participants households poverty reduction? If yes, how much is the impact? Answering these questions empirically would be of interest to program administrators and policy makers in promoting a major change in the preceding approaches. Against this backdrop, this study was carried out in Hossana town of Hadiya Zone, in SNNPRs were different financial institutions have been executing.
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Impact of Islamic Microfinance on Improving the Income and Poverty Reduction on Microenterprises in Province Aceh : Case Study in BaitulQiradh

Impact of Islamic Microfinance on Improving the Income and Poverty Reduction on Microenterprises in Province Aceh : Case Study in BaitulQiradh

Development of islamic micro finance predict table provide great motivation and positive foreconomic development by reducing thelevels of poverty and unemploy mentamong young people through increasedeconomi can dsocialcapital, withthe spirit ofentrepreneurship base onvaluesandIslam. Many people believed that microfinance become worthy ins trumentin reducingpoverty problem (Ahmed, 2004, 2007;Chapra2000.2008; Kafh1999: Masyita 2005, 2007). However ,the implementation rate of success around the world have very different according tosocio economi crecipient communities. Knight and Farhad (2008) stated that micro finance directlyim prove thequality of lifeand reduce poverty. By gettingloans (financing) customers can work them selves and protect them selves from external threats. The existence ofthe work will encourage them to get outof the poverty cycle, thuspovertywill decline. Thus,Access tocapitalis criticaland important to improve micro-enterpriseses(Leaman, Cook&Stewart, 1992).
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MICROFINANCE AND POVERTY REDUCTION IN INDIA

MICROFINANCE AND POVERTY REDUCTION IN INDIA

In India, many poverty alleviation programmes are implemented for poverty reduction but the desired results are yet not obtained. The outcome of this paper will help to understand the relationship between poverty alleviation and microfinance on one hand and on the other hand,. the outcome of this paper will also throw light on impact of poverty alleviation programmes on poverty reduction through microfinance in India. Microfinance has become more widespread over the last couple decades, as it has been shown to be effective in alleviating conditions of poverty. Creating self employment opportunities is one way of attacking poverty and solving the problems of unemployment. There are over 24 crore people below the poverty line in our country and microfinance activities can give them a mean to climb out of poverty. Microfinance could be a solution to help them to extend their horizon and offer them social recognition and empowerment. The Scheme of Micro-finance has been found as an effective instrument for lifting the poor above the level of poverty by providing them increased self-employment opportunities and making them credit worth. The present study found that microfinance is an important factor for live a better life by increase per-capital income and reduce and lift up the population under poverty-line.
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Restructuring of ‘Ain Waqf in Corporate Waqf Model for Boosting the Nation’s Economic Prosperity

Restructuring of ‘Ain Waqf in Corporate Waqf Model for Boosting the Nation’s Economic Prosperity

According to al-Quran or al-hadith, there are no exact meaning of waqf. According to Islamic jurists, sadaqah jariyah defined as donation made by someone. If someone donate some possession during his lifetime, the donation must be perpetual once it is created. This guarantees that it will benefit generation after generation and also prohibits it from being confiscated. (Abd. Shakor, 2011). Literally, endowments derived from an Arabic word which means detention (al-habs) or prevention (al-man') (Siti Mashitoh, 2007). Technically, waqf means detention of a person's property that can be utilized with the permanent existence of its corpus in order to fulfill specific needs regarding to conditions made by al-waqif or property owner (Muhammad Ridhwan, 2012).
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TOWARDS AN INTEGRATED WAQF (ENDOWMENT) MODEL

TOWARDS AN INTEGRATED WAQF (ENDOWMENT) MODEL

With strong support from established corporation in embracing Waqf is also fundamental in seeing the success of Waqf, for instance Johor Corporation Malaysia has dedicated itself in revitalising the role of Waqf in pushing for socio-economic growth. Johor Corp has allocated portion of its share as Waqf and managed by Wancorp. A lot of initiatives have been carried out by Wancorp and all these initiatives reflect the innovative and dynamicity of the institution in providing various benefits to the community depending on the needs. It can be clearly learned the role of Waqf carried out by Wancorp has made traditional role of Waqf seems obsolete. Traditional Waqf of physical immovable asset like land usually struggle from many constraints. High number of Waqf lands remain idle due to the fact of very stringent condition set by the donor, if such cases persist the role of Waqf in the socio-economic development would diminish unless Waqf institution can come up with a more dynamic and innovative solution. As what has been effectively practised by Wancorp in creating a more innovative and dynamic form of Waqf assistance which in line with the current demand, the success in most of the project is leveraged on the due diligence of the Waqf manager. This also indicates the importance of having pool of human resources which can perform their job effectively and efficiently.
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Islamic Microfinance System and Poverty Alleviation in Somaliland

Islamic Microfinance System and Poverty Alleviation in Somaliland

The overwhelming stress on satisfaction of basic needs and social security both of current and future generations leaves no justification for the prevalence of widespread poverty in Islamic framework. As a matter of fact, Islam and absolute poverty cannot persist together because Islam is a viable system that can respond and consequently eliminate poverty through its socioeconomic, cultural and political mechanisms and principles. A really shameful situation emerges when abovementioned Islamic commitment is put next to along with pervasive poverty in Muslim world comprising of over a billion people and with impressive energy reserves like oil supplies but still faces crippling levels of poverty and increasing inequalities between haves and have-nots. Since it is estimated Muslims (CIA World Factbook 2010 and Economist
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The Role of Islamic Microfinance for Poverty Alleviation in Mogadishu, Somalia: An Exploratory Study

The Role of Islamic Microfinance for Poverty Alleviation in Mogadishu, Somalia: An Exploratory Study

In practice, poverty alleviation requires more than financial support. Borrowers often lack the necessary skills to run a successful business and are thus unable to repay the loan on time (Abdul Rahman and Dean, 2013; GIFR, 2016). Other factors such as market opportunity, physical health, consumer demand, and adverse weather all affect the ability of borrowers to repay their loans. Therefore, Abdul Rahman and Dean (2013) suggested a combination of microfinance services with educational programmes. This requires collaboration between multiple organisations or experts, which is complicated and difficult to coordinate. The success of microfinance in alleviating poverty as shown by the Grameen bank is debatable because critics argue that Grameen model of microfinance could not be sustained without grants (Abdul Rahman and Dean, 2013). Other researchers found that the success of Grameen bank in helping the economically disadvantaged groups was partly due to its village phone programme, where borrowers can purchase mobile phones and provide payphone service to villagers (Yunus, 2004). It thus appears that the Grameen model of microfinance requires joint efforts from multiple organisations (i.e. grant provider and network provider).
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Microfinancing for Poverty Reduction and Economic Development; a Case for Nigeria

Microfinancing for Poverty Reduction and Economic Development; a Case for Nigeria

In spite of the fact that Nigeria ranks high among other countries in terms of gross domestic output, most social and economic indicators have relegated the economy to a category of underdeveloped country. From the above table 1, the Human Development Index (HDI) ranks Nigeria lowest. The HDI is a composite index that reflects three indicators: life expectancy at birth; educational achievement, which is a combined measurement of adult literacy (two-thirds weight) and the gross primary, secondary and tertiary enrolment ratio (one-third weight); and per capita GDP (in PPP US$). The three indicators are important factors in measuring the state of deprivation in a state. Poverty in Nigeria is characterized by high illiteracy level, prevalence of malnourishment, high incidence of major disease outbreak, gender inequality, income disparity and unemployment. Looking at the gini index, there is a clear indication that Brazil has the highest inequality rate. Holding from past records, there has been a slight decline in the coefficient. Nigeria and Philippines also have high income disparity among her social class. This is attributable to corruption. Considering the country’s inequality problem , the aforementioned importance of microfinance in promoting poverty alleviation and enhancing economic growth can be justified.
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CUSTOMERS PERCEPTION TOWARDS MARKETING STRATEGIES ADOPTED BY INDIAN TELECOM COMPANIES

CUSTOMERS PERCEPTION TOWARDS MARKETING STRATEGIES ADOPTED BY INDIAN TELECOM COMPANIES

Microfinance’s worldwide recognition has been credited to Prof. Dr. Muhammad Yunus who is the founder of the Grameen Bank in Bangladesh and recipient of the 2006 Nobel Peace Prize. Most microfinance studies in Bangladesh are limited to either one or two major MFIs or to the overall impact on clients’ poverty reduction, improvement in health and social status, enhancement of women entrepreneurship and empowerment, etc. This study aims at understanding the management part of micro finance and its prospect of application in Bangladesh. The article also looks into the contribution of micro finance in Bangladesh economy together with sources of fund for such micro finance institutes. Moreover, other studies focused on welfare impacts pay less attention to sustainable entrepreneurship development. Hashemi, Schuler, and Riley (1996). Finally we can summarize that micro finance credit has greatly contributed to the economy of a developing country like Bangladesh. Poverty eradication, unemployment reductions, self-employment prospects together with self confidence and belief among poorest that they can also survive and contribute to the economy to build a nation.
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The Performance of Microfinance Institutions on Poverty Reduction: A Case of Pride Tanzania in the City of Mwanza

The Performance of Microfinance Institutions on Poverty Reduction: A Case of Pride Tanzania in the City of Mwanza

More recently, commentators such as Littlefield, Murduch and Hashemi (2003), Simanowitz and Brody (2004) and the IMF (2005) have commented on the critical role of microfinance in achieving the Millennium Development Goals. Simanowitz and Brody (2004, p.1) assert that, “Microfinance is a key strategy in reaching the MDGs and in building global financial systems that meet the needs of the most poor people.” Littlefield, Murduch and Hashemi (2003) state “microfinance is a critical contextual factor with strong impact on the achievements of the MDGs…microfinance is unique among development interventions: it can deliver social benefits on an ongoing, permanent basis and on a large scale”. Referring to various case studies, they show how microfinance has played a role in eradicating poverty, promoting education, improving health and empowering women (2003).
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Microfinance and Poverty Reduction: The Nigerian Experience

Microfinance and Poverty Reduction: The Nigerian Experience

The unflinching commitment of the Central Bank of Nigeria to the reduction of poverty and other associated socio-economic malaise in Nigeria, informed the decision of the Bank to formulate and implement a functional microfinance policy framework aimed at stimulating sustainable growth and development. This has become more imperative in view of the limited capacity of the formal banking sector in providing financial services to the vast majority (about 65%) of the Nigeria population considered poor but economically active (CBN 2010:22). Microfinance institutions could play a pivotal role in meeting the financial needs of both households and micro enterprises. Traditional or formal banking sector has failed to provide adequate credit services to the poor, and microfinance institutions and programmes are being developed to fill this gap. If microfinance institutions are correctly aimed at improving access to credits, then encouraging savings and the means to save to those who did not have such access before, could play a critical role in eradicating or reducing poverty and empowering a nation, including Nigeria, which, according to Ankomah and Chamba (2000:5) could lead to economic development generally.
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