Microfinance Case Study --Suitable model in China
Microfinance Case Study
--Suitable model in China
Presented by Yonghan Chen
Present to Glenn Francis
Date: June 2, 2013
Table of contents
Executive summary 3
Problem Statement 4
Data analysis 5
Key Decision Criteria 8
Alternatives analysis 8
Recommendation 9
Action and Implementation Plan 10
Exhibits 11
Work Cited 13
Bibliography 14
Executive Summary
Since Garmeen bank model is conducive to reduce poverty, more and more developing countries accept Microfinance project as a tool to help rural people in their own countries. However, this case study demonstrates the bottleneck of Microfinance project in China, which can be concluded as implementation of government policy, working structure and lack of non-banking activities. Take the essence and discard the dregs of Indian experience, China has to apply Garmeen model into Chinese model. According to analyzing exist data, I present three alternatives to solve the problem. Moreover, after recommendation of alternatives, I provide an action plan, include but not limited in Money loan, extra non-banking activities and new working structure, which can effectively work in China. Action plan start with basic information analysis, target choice and provide further detail of non-banking activities.
1. Problem Statement Microfinance, which can be described as an effective tool of poverty reduction, is successfully operated in Bangladesh. However, a controversial issue is that other developing countries are hard to keep pace with the Micro-model against poverty of society and burden of rural people, especially in China. In some way, China becomes a strange developing country which contains approximately $8.227 trillion nominal GDP but still has roughly 55% rural people (The World Bank, 2008-2012). As far as I know, implementation of government policy, working structure of
--Suitable model in China
Presented by Yonghan Chen
Present to Glenn Francis
Date: June 2, 2013
Table of contents
Executive summary 3
Problem Statement 4
Data analysis 5
Key Decision Criteria 8
Alternatives analysis 8
Recommendation 9
Action and Implementation Plan 10
Exhibits 11
Work Cited 13
Bibliography 14
Executive Summary
Since Garmeen bank model is conducive to reduce poverty, more and more developing countries accept Microfinance project as a tool to help rural people in their own countries. However, this case study demonstrates the bottleneck of Microfinance project in China, which can be concluded as implementation of government policy, working structure and lack of non-banking activities. Take the essence and discard the dregs of Indian experience, China has to apply Garmeen model into Chinese model. According to analyzing exist data, I present three alternatives to solve the problem. Moreover, after recommendation of alternatives, I provide an action plan, include but not limited in Money loan, extra non-banking activities and new working structure, which can effectively work in China. Action plan start with basic information analysis, target choice and provide further detail of non-banking activities.
1. Problem Statement Microfinance, which can be described as an effective tool of poverty reduction, is successfully operated in Bangladesh. However, a controversial issue is that other developing countries are hard to keep pace with the Micro-model against poverty of society and burden of rural people, especially in China. In some way, China becomes a strange developing country which contains approximately $8.227 trillion nominal GDP but still has roughly 55% rural people (The World Bank, 2008-2012). As far as I know, implementation of government policy, working structure of
Bibliography: 4. Du Xiaoshan, some views on the possibility of foreign investment in the China microfinance, February, 2008. 5. Jiao Jinpu, etc. “Microfinance and rural finance,” China’s finance publisher, October, 2006. 6. Knowledge@Wharton, May 10, 2006, Microfinance in China: Growth and Struggle http://knowledge.wharton.upenn.edu/article.cfm?articleid=1471 16. Weiyong Yang, 2006, Reforms, Structural Adjustments, and Rural Income in China, http://chinaperspectives.revues.org/575 17. Wang Shuguang etc., “Rural Finance,” Peking University Press, 2008