Microcredit and Poverty Alleviation In The Mexico Contemporary

Tuesday, July 15, 2014: 4:15 PM
Room: 424
Oral Presentation
Bernardo RAMIREZ , Economic History, Universidad Nacional Autónoma de México, Ciudad de México, Mexico

Microcredit and Poverty Alleviation in the Mexico Contemporary

Microcredit as strategy for poverty alleviation grows stronger in the last decades of the twentieth century, from successful experiences in different parts of the world, both in developing countries and the developed, numerous studies beginning to emerge about microcredit; however these studies are mostly empirical.

Muhammad Yunus, founder of Grameen Bank, believes that the persistence of poverty is not because the poor have low or no schooling, but because many people lose business opportunities by not having access to a loan. For Yunus poverty can be alleviated if you pay money to the poor.

Yunus raises to credit as a human right and the prospect that the key in overcoming poverty through this financial instrument, are the economy and private initiative. Microcredit provides to people poor self-esteem and empowerment, addition, of creates new jobs . This is consistent with the idea that the state should move away from social welfare issues and concentrate on the proper functioning of the economy.

Microcredit has been incorporated into the social programs of the governments of various countries. Thus, in Mexico, the Ministry of Social Development (SEDESOL) has the social program called "Opciones Productivas", which supports productive projects of the population poor.

This paper presents a historical review of the development of microcredit and analyzes to the loans granted for the government in contemporary Mexico.