Microfinance and Macrofinance
The growing realization of the importance and positive effects of microfinance on poverty, on microenterprises, on households etc. has generated considerable interest in its potential to reach low-income families who have traditionally been sidelined by formal financial institutions. Opportunities to invest in funds geared towards microfinance have increased over the last few years, particularly focussing on investments that support sustainable development activities at the local level. Interest has also been focussed on decentralized investment - where the local economy is emphasized, and local profits and benefits go back to the local economy.
In terms of the environment, this has essentially meant the availability of funds to generate environmentally sensitive and sustainable solutions that go beyond the cliches. The realization that small local activities has many wider repercussions and effects globally, emphasizes the need for local solutions at the micro-level, which is where microfinance comes in.
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Return to Environmental Colours of Microfinance |
Hari Srinivas - hsrinivas@gdrc.org
Return to the Virtual Library on Microcredit