Microcredit as a strategy for poverty reduction: a case study of the Sudan
Sudan is a low income country characterized by high incidence of poverty which currently stands at about 46%. This situation is paradoxical in view of its substantial resource endowments. Sudan government has continued to introduce programmes aimed at alleviation of poverty which were generally char...
| Main Author: | |
|---|---|
| Format: | Proceeding Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/35576/1/garoot.pdf |
| _version_ | 1796878627957112832 |
|---|---|
| author | Eissa, Garoot Suleiman |
| author_facet | Eissa, Garoot Suleiman |
| author_sort | Eissa, Garoot Suleiman |
| collection | IIUM |
| description | Sudan is a low income country characterized by high incidence of poverty which currently stands at about 46%. This situation is paradoxical in view of its substantial resource endowments. Sudan government has continued to introduce programmes aimed at alleviation of poverty which were generally characterized by lack of effectiveness. Shortage of investible funds was an important cause of perpetuation of poverty. The traditional approach towards poverty reduction centered on national development programmes designed to enhance economic growth and improve the standards of living. In addition the Islamic institution of Zakat was utilized to assist poor families start income generating projects. However, recently a more ambitious poverty focused microcredit programme has been launched. Thus, billions of dollars were earmarked for microcredit to help the poor obtain investible resources which can be directed towards starting income generating projects or upgrading and modernizing present undertakings. Several institutions were entrusted with implementation with commercial banks as the main lending institutions. This paper argues that today there is no shortage of funds earmarked for microfinance in the Sudan. But the prevailing institutional inadequacies would not allow such substantial outlays to have much impact on poverty reduction. The paper reviews the history of microcredit and microfinance in the country; highlights the role of different institutions in provision of microcredit. Present banking arrangements are deemed unsuitable for microcredit or microfinance. Other public sector institutions lacked capacity to engage in microcredit. Zakat Chambers and NGOs have capacity and experience in dealing with the poor but lack resources. An attempt is made in this paper to figure out the possible policy outputs. Recommendations center on institution building and enhancement of administrative capacity for all institutions so that microcredit programmes can bear fruit to benefit the poor and contribute to the country’s economic growth.
|
| first_indexed | 2024-03-05T23:24:16Z |
| format | Proceeding Paper |
| id | oai:generic.eprints.org:35576 |
| institution | International Islamic University Malaysia |
| language | English |
| last_indexed | 2024-03-05T23:24:16Z |
| publishDate | 2012 |
| record_format | dspace |
| spelling | oai:generic.eprints.org:355762014-03-16T18:04:55Z http://irep.iium.edu.my/35576/ Microcredit as a strategy for poverty reduction: a case study of the Sudan Eissa, Garoot Suleiman HG3691 Credit Sudan is a low income country characterized by high incidence of poverty which currently stands at about 46%. This situation is paradoxical in view of its substantial resource endowments. Sudan government has continued to introduce programmes aimed at alleviation of poverty which were generally characterized by lack of effectiveness. Shortage of investible funds was an important cause of perpetuation of poverty. The traditional approach towards poverty reduction centered on national development programmes designed to enhance economic growth and improve the standards of living. In addition the Islamic institution of Zakat was utilized to assist poor families start income generating projects. However, recently a more ambitious poverty focused microcredit programme has been launched. Thus, billions of dollars were earmarked for microcredit to help the poor obtain investible resources which can be directed towards starting income generating projects or upgrading and modernizing present undertakings. Several institutions were entrusted with implementation with commercial banks as the main lending institutions. This paper argues that today there is no shortage of funds earmarked for microfinance in the Sudan. But the prevailing institutional inadequacies would not allow such substantial outlays to have much impact on poverty reduction. The paper reviews the history of microcredit and microfinance in the country; highlights the role of different institutions in provision of microcredit. Present banking arrangements are deemed unsuitable for microcredit or microfinance. Other public sector institutions lacked capacity to engage in microcredit. Zakat Chambers and NGOs have capacity and experience in dealing with the poor but lack resources. An attempt is made in this paper to figure out the possible policy outputs. Recommendations center on institution building and enhancement of administrative capacity for all institutions so that microcredit programmes can bear fruit to benefit the poor and contribute to the country’s economic growth. 2012-07-22 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/35576/1/garoot.pdf Eissa, Garoot Suleiman (2012) Microcredit as a strategy for poverty reduction: a case study of the Sudan. In: 5th International Colloquium on Business and Management Education, 19-22 July 2012, Bangkok, Thailand. http://www.icbme.com/ |
| spellingShingle | HG3691 Credit Eissa, Garoot Suleiman Microcredit as a strategy for poverty reduction: a case study of the Sudan |
| title | Microcredit as a strategy for poverty reduction: a case study of the Sudan
|
| title_full | Microcredit as a strategy for poverty reduction: a case study of the Sudan
|
| title_fullStr | Microcredit as a strategy for poverty reduction: a case study of the Sudan
|
| title_full_unstemmed | Microcredit as a strategy for poverty reduction: a case study of the Sudan
|
| title_short | Microcredit as a strategy for poverty reduction: a case study of the Sudan
|
| title_sort | microcredit as a strategy for poverty reduction a case study of the sudan |
| topic | HG3691 Credit |
| url | http://irep.iium.edu.my/35576/1/garoot.pdf |
| work_keys_str_mv | AT eissagarootsuleiman microcreditasastrategyforpovertyreductionacasestudyofthesudan |