»Poverty is not having security in the basic necessities of life: food, shelter, clean water, access to medicine, education, a job in a community that can provide these things. Most commonly, poverty is measured on the basis of income or consumption. One is considered subject to poverty if his or her income or consumption level is below a minimum level needed to meet life's most basic needs.
»The World Bank uses $1.25 and $2 per day as a base line reference for measuring those suffering from extreme and moderate poverty. According to the latest 2005 data estimates released in August of 2008, 1.4 billion people (one out of every four people in the world) were living on less than $1.25 a day and close to 4 billion on less than $2 a day.
»Microfinance, now viewed as one of the most effective tools in combating poverty, uses creativity, market-based incentives, and social conscience as drivers in a capitalist platform to increase the welfare of both the poor entrepreneur and the community as a whole.
Microfinance: the practice of providing financial tools such as credit, insurance and savings to low-income, disadvantaged individuals that are seen as "unbankable" by commercial institutions
Microcredit: this microfinancial tool refers to providing small loans to low-income, disadvantaged individuals lacking access to capital needed for their entrepreneurial ventures
Top-down approach: an economic development approach that focuses on granting governmental and widespread organizational aid with the hopes that the effort trickles down and is eventually felt by those at the bottom of the ladder
Bottom-up approach: an economic development approach that focuses first and foremost on the individuals on the ground where extreme poverty is most prevalent
Double-Bottom Line: an investment offering social and financial incentives as potential returns
MFI: microfinance institution, an organization devoted to servicing those needing microfinance
Sustainability: the ability for an organization to maintain future operations, independent of subsidized donations or grant funding, with a continuing sound service delivery and revenue structure
Transparency: a proven willingness by an organization to openly share with, accurately account for, and clearly communicate its activities and intentions
Agency Rating: an internationally recognizable rating given to MFIs by agencies that take into account an organization’s loan portfolio quality, risk management, average yield, among other factors when analyzing specific MFI operational activities
Social Performance Rating: a Dvelo.org system that develops an MFI rating based on their specific history of repayment and user experience as given by the lenders themselves
Project Requests: partnered MFI loan requests for specific entrepreneurial projects that have been chosen by the sponsoring MFI
Direct Organizational Requests: partnered MFI loan requests for funds needed to better the efficiency, effectiveness, and overall productivity of that organization. These funds help cover the cost of everything from entrepreneurial projects to operational costs and capacity building
Vertical Growth: growing operations within existing MFI service areas through product diversification and clientele expansion
Horizontal Growth: model replication by MFIs to expand operations into new geographic areas
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