Microcredit as a strategy for poverty reduction: a case study of the Sudan
Sudan is among those developing countries characterized by high incidence of poverty in spite of its prodigious resource endowments. Sudan government has continued to introduce progra mmes aiming at alleviation of poverty which were generally characterized by a lack of effec tiveness. The trad...
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| Format: | Article |
| Language: | English |
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David Publishing Company.
2013
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| Online Access: | http://irep.iium.edu.my/36039/ http://irep.iium.edu.my/36039/ http://irep.iium.edu.my/36039/1/garout.pdf |
| Summary: | Sudan is among those developing countries
characterized by high incidence of poverty in spite of its prodigious
resource endowments. Sudan government
has continued to introduce progra
mmes aiming at alleviation of poverty
which were generally characterized by a lack of effec
tiveness. The traditional approach towards poverty reduction
centered on national development progr
ammes designed to enhanc
e economic growth and improve standards of
living. In addition, the Islamic institution of Zakat was
utilized to help poor families start income-generating
projects. However, recently, a more
ambitious poverty-focused microcred
it programme was la
id forth. Thus,
billions of dollars were earmarked for microcredit to help
the poor obtain investible resources which can be directed
towards starting income-generating projects. This paper argue
s that today, there is no shortage of funds earmarked
for microfinance in Sudan. But the prevailing institutional
inadequacies would not allow such substantial outlays to
have much impact on poverty reduction. This paper revi
ews the history of microcredit and microfinance in the
country, highlights the roles of different
institutions in provision of microcredi
t, attempts to figure out its possible
policy outputs, and finally makes some sugges
tions to overcome the
evident shortcomings. |
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