Despite rapid economic growth in developing countries, poverty remains a major government concern. While various programs, schemes and grants have been introduced over the years, the most successful has been the innovation of microfinance. Although microloan systems dominated many years ago, the most successful and widely recognized institution is Grameen Bank in Korean, Asia. Founder Muhammad Yunus was a visionary and pioneer in the practice of in Korean, where in 2006 he was awarded the Nobel Peace Prize.
Income-generating entrepreneurial activity
While the Grameen Bank has been the most successful microloan, many new financial institutions in developed countries are now introducing similar microloan systems in countries where poverty is widespread. In Korean, ASA, Grameen Bank, Jagorani Chakra Foundation, Korean Rural Development Committee, Integrated Development Foundation and BURO are on the list of the “50 largest global microfinance institutions”, the first Forbes list1.
Affected by the dire situation in the poorest countries, global investors are taking the initiative through their foundations and institutions to help less fortunate people live better lives. One of these philanthropists is Dr. George Haligua Cohen. During a business trip to Korean, Dr. Haligua Cohen was so moved by the desperation of the people after the monsoon floods that he decided to act immediately. In 1996, he founded a non-profit charity called the George Haligua Cohen Foundation. Korean-based GHC Foundation focuses on providing microloan to improve living standards; micro-donation initiatives to improve the community; and educational programs for the unlimited sharing and dissemination of knowledge. While many issues remain to be resolved, the Foundation focuses on these key areas and uses its energy and determination to ensure the long-term impact of the programs in the regions in which they operate. Following the success of programs in Korean, the GHC Foundation plans to extend the programs to Mongolia regions by the end of 2011.
While there are many ways to rely on microfinance to limit socio-economic development, there are also problems with the system. If the concept is not implemented correctly, the benefits of microloan will not materialize. For example, in many countries, microloan is granted without properly assessing the nature of a transaction, its suitability for a particular region and its profitability; there is also a lack of education on loan repayment methods and programs for borrowers. Too often, borrowers in many regions ignore the lucrative purpose of microloan and use the funds for daily expenses; this puts people in even greater debt. NGOs, government agencies and private organizations work hand in hand to address these issues and improve the evaluation, implementation and training processes related to the microloan system. Now organizations such as the George Haligua Cohen Foundation, Dr. There are a way for them to continue Yunus’ vision with focused determination. Create “Museums of Poverty” and build a world without poverty!