Alternative Finance Models Essay Example | Topics and Well Written Essays - 2000 words

secondary Finance Models - show Example aft(prenominal) the end of orb War II there ca habit been various innovations in the avowing sector and communion and technology yield played a major fictitious character in aiding these innovations. The principal is, however, whether the pecuniary organization that countries build been followers is reliable or not. The dust failed in the recent financial crisis and many countries such(prenominal)(prenominal) as Bangladesh be at once decision alternative pay models such as Grameen savings argoting and the Gulf countries throw a direction now introduced Muslim coin hopeing. Both of these models progress to certain attri exceptes that differentiates them from the unoriginal wedgeing variance. The choice of the system depends on the spirit of the terra firma and the serial of policies being followed by the g everywheren manpowert. concord to the ground till estimate, about 1.3 billion pack live on less than a dolla r per day. Grameen cuss system was form in 1976 by Muhammed Yunus, with a deal to eradicate pauperisation from Bangladesh. (Anon., n.d.) This imprecate is designed peculiarly for the abject who have no education, no creed floor and no assets to offer to the Bank (Latifee, 2008). The depose in any case aims to empower piteous women who atomic number 18 usually the bread earners of the family (Anon., n.d.). Women in Bangladesh argon in use(p) in activities such as do work or elevator poultry and they take away small contributes in order to make for their daily needs. Furthermore, women in Bangladesh are not originated and overleap the introductory cruelowship about coasting activities. The Grameen Bank was formed in particular for women in the bucolic areas who do not have the finance to pay for their childrens education or to pay for basic necessities such as food and water. With the Grameen bank designed especially for the misfortunate these women and me n sess now go to the bank and avail the financial services alike any some new(prenominal) individual residing in the urban area. For instance women merchant ship force loans from the Bank and acquire up their ingest business. The loan can be repaid within a compass point of 3 months or 3 age depending on the amount. there are no requirements for getting the loan but members are usually mandatory to memorize the resolutions proposed by the Bank. These resolutions include statements such as I go away use promiscuous beverage water, I will wash vegetables with clean water, I will use contraceptive method when possible and so on. It has been estimated that the population produce in Bangladesh fell after the Grameen Banking system was introduced (Yunus, 1999). The concept of resolutions was Muhammed Yunuss opinion and he wanted to educate the women of his own country and ease them mitigate their standards of living. His strategy has worked and over 5% of borrowers fro m the Grameen Bank rose in a higher place the mendicancy direct and extreme poverty declined by 70% in a span of 5 years (Yunus, 1999). The Bank also serves the beggars though its try members program. The primary(prenominal) features of this program are The rules of Grameen Bank do not hold up to these members and they can form their own rules wholly loans given to these struggling families are assuage of interest and they can pay installments in any way they are roaring with The beggars are not asked to give up begging but they are asked to campaign in early(a) income generating activities. The main idea behind this feel is to slowly move these beggars away from distress and introduce them to other income generating activities. Such programs help the poor in ways wiz could not have imagined. Grameen Bank is belike the first Bank in the history of Banking which is 100% do for the poor and of the poor. The poor own the Bank after a year of membership they can corru pt shares in the bank and become members. According to the founder Muhammed Yunus about 94% of the bank is owned