Microfinance is a term for the practice of providing financial services, usually very small loans, to developing economies. Suggested by the name, most transactions involve small amounts of money, frequently less than 100 USD.In post-conflict and low intensity environments economic development and/or reconstruction will be needed. While there is, and will continue to be a need, for large multi-million and multi-billion dollar programs, there is also a need support economic activity at the lowest level. Microfinance programs will support that effort.Dr. Muhammad Yunus (Bengali: মুহাম্মদ ইউনুস, pronounced Muhammôd Iunūs) (born June 28, 1940), is a Bangladeshi banker and economist. He is the developer of the concept of microcredit, (founded by Pakistani Dr. Akhter Hameed Khan ), the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. Yunus is also the founder of Grameen Bank. In 2006, Yunus and the bank were jointly awarded the Nobel Peace Prize, "for
their efforts to create economic and social development from below."
The unit would consist of teams capable of operating independently and able to disperse and the track funds distributed as well as offer basic business skills training in accounting, inventory management, and other related topics. Collection of the loans would be a goal, but would not decide the success or failure of the teams. Success would be measured by the amount of economic activity the funds dispersed were able to generate.
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