“Formal SMEs contribute up to 60% of total employment and up to 40% of national income (GDP) in emerging economies.” (Bell, 2015) This quote, published by the Worldbank points out the high significance of small firms in developing countries. But amongst others they face one relevant problem: they cannot profit from economies of scale the … Continue reading Is support for small firms in developing countries really in the interest of the specific countries?
When it comes to helping the poor policy-makers have three basic options to design transfers. They can provide in-kind transfers, such as food, medical care or farm animals, transfer cash directly to the ones in need or remit money under certain conditions, e.g. aid only for households, which send their children to school. Behavioural economics … Continue reading Cash or Cow?
“We believe that poverty does not belong in a civilized human society. It belongs in museums.” This sentence was said by Mohammad Yunus during his speech at the first Microcredit Summit in 1997. He is the founder of the Grameen Bank, the first microfinance institution and started introducing microloans to rural women in Bangladesh in … Continue reading Can microfinance end poverty?
For a very long time, governments all over the world try to cope with poverty. Over the past 50 years, $2.3 trillion have been spent on aid, but poverty is still an important issue. Hence, the upcoming question is: What are initiators of these programs missing? What could help to improve existing programs? In 2011, … Continue reading Can Nudges Help to Overcome the Obstacles of Saving Money in Developing Countries?