127 research outputs found
Who pays for Covid-19? assessing seven potential options
No full textThe Covid-19 pandemic has motivated huge levels of spending from governments across the world. But once the pandemic is over, how will these measures be paid for? Arvind Ashta assesses the feasibility of seven potential options
It is time to seriously consider the advantages of a world federal government
No full textThe Covid-19 pandemic is a global crisis, yet it has largely been managed by states acting independently. Arvind Ashta argues that in light of the pandemic, we should seriously consider the potential advantages of moving toward a world federal government. In a previous EUROPP article written during the first wave of the pandemic in Europe, ... Continue
States will remain unable to solve global crises like climate change until they let go of their sovereignty
No full textEfforts to tackle climate change and the Covid-19 pandemic have been undermined by a lack of global coordination. Arvind Ashta argues that if states are serious about solving the global crises of the future, it will be necessary to let go of their sovereignty and invest legitimacy in an international body that has the power to implement real solutions
La législation française en matière d'usure et le développement de l'accès au crédit des microentreprises
No full textcahiers du CEREN n° 21The failures of the socialist model, evidenced by high unemployment, have led France to reorient itself towards more enterprise creation. These entrepreneurial ventures require financing. However, bankers do not want to assume the high risk of newly created enterprises. Moreover, small entrepreneurs who do manage to get financing may find themselves rationed at the margin if the rate of credit is capped by the legislature. Concurrently, the growth of microfinance in the world has shown that innovative techniques can increase credit availability, without unduly high risk. However, such increased credit availability may not materialize if credit rates are capped by usury laws, as it was in France. This paper traces out a number of legislative changes which took place in France in the last five years, focusing especially on usury laws and other barriers to credit. It places these legislative changes in a perspective of Western Europe's socialist model, comparing legislation on credit and usury in a number of developed countries. It also examines if these legislative changes have been accompanied by the desired impact. Finally, it examines alternative future legislative evolution possibilities.Les échecs du modèle socialiste, mis en évidence par le fort taux de chômage, ont mené la France à se réorienter vers davantage de création d'entreprise. Ces aventures entrepreneuriales nécessitent un financement. Pourtant, les banquiers ne veulent pas supporter le fort risque représenté par les entreprises nouvellement créées. En outre, les petits entrepreneurs qui réussiraient tout de même à recevoir un financement se trouvent au final encore rationnés à la marge si le taux de crédit est plafonné par la législation. En parallèle, la croissance de la microfinance dans le monde a montré que les techniques innovatrices peuvent augmenter la disponibilité de crédit, sans augmenter indûment le risque. Néanmoins, cette croissance de l'accès au crédit peut ne pas se concrétiser si les taux de crédit restent plafonnés par des lois régissant l'usure, comme c'était le cas en France. Cet article retrace les changements législatifs qui sont survenus en France dans les cinq dernières années, en se concentrant principalement sur les lois d'usure et certaines autres barrières au crédit. Il place ces évolutions législatives dans la perspective du modèle socialiste de l'Europe occidentale en comparaison de celles dans un certain nombre de pays développés. Il examine également si ces réformes ont été accompagnées de l'impact désiré. Finalement, il explore de lege feranda les évolutions législatives qui pourraient achever ce processus de modernisation du droit français du crédit
A minimum wage solution to halving world poverty by 2015: A stakeholder approach
No full textAbstractThe UNDP has set Millennium Goals which include the halving of world poverty by 2015. This was translated into reducing by half the number of people living in abject poverty. We examine some existing poverty reduction solutions which are being experimented with, including aid (with central planning with participatory development), property rights, education, microfinance, bottom of the pyramid inclusion, and public sector employment, and find that these have been inadequate to the task, even conjointly. We add a minimum wage based solution
Towards a New Form of Undemocratic Capitalism: Introducing Macro-Equity to Finance Development Post COVID-19 Crisis
No full textSustainable Development Goal 16 talks about Peace, Justice, and Strong Institutions, and goal 10 talks about reducing inequality. A major problem exposed by the COVID-19 crisis is that public deficits seem to be the normal state in the business cycle’s booms and downturns, limiting capacity for emergencies. Corporate capitalism has an incentive to perpetuate deficits to increase growth, provide risk-free interest income to financial institutions, and to increase inequalities and economic injustice. To counter this problem, the purpose of this communication is to suggest that countries need to issue equity capital, which we term macro-equity. This macro-equity will give dividends to its shareholders in times of public surplus and issue new shares in times of public deficits. The communication is written as a mind experiment, debating the issues that may arise. This proposal raises many questions of an ethical and moral nature that will lead to passionate debate. The use of macro-equity will reduce countries’ stress, created by high public debt. With appropriate incentives, it may create an entrepreneurial mindset in political leaders that may even reduce corruption and promote redistribution. The moral and ethical issues need to be weighed against the street violence in the absence of any change
Etudes de consommateurs en microfinance : journaux, enquêtes, et expériences
No full textLa thèse comporte sept chapitres. Nous présentons, dans le premier chapitre, une étude qui montre les traits particuliers des pauvres et la façon dont ils perçoivent leur propre pauvreté. Le second chapitre est consacré à une revue de la littérature sur l'utilisation d'agenda de gestion du temps comme outil de collecte de données en recherche qualitative. Le troisième chapitre propose une version modifiée du "modèle de portefeuille économique du ménage” (HEP) de Chen et Dunn (1996). Le modèle modifié (M-HEP) permet une évaluation non expérimentale de 1’impact de la microfinance. Nous l’avons mis en place via la collecte d’informations simples auto-déclarées sur 1’utilisation quotidienne du temps et de l’argent auprès d'un échantillon de femmes pauvres du Caire (Egypte). Le quatrième chapitre propose une étude testant ce modèle (M-HEP) auprès de personnes en situation de handicap. Le cinquième chapitre s'attache à une étude qui souligne une limite des journaux combinés "non stylisés" ou "non-directifs". Le sixième chapitre expose l’utilisation de jeux expérimentaux sur un échantillon de population du Caire en comparant le comportement des clients de la microfinance à celui de non-clients. Le dernier chapitre expose une étude d’évaluation d’impact de la microfinance sur le genre au Mali, utilisant une méthode quasi-expérimentale. Enfin, en guise de conclusion, nous préconisons 1’utilisation du modèle M-HEP dans l’étude de l’évaluation de I’impact de la microfinance. Nous avons effectué’ une étude comparative des trois méthodes utilisées dans la thèse à savoir la méthode qualitative non-expérimentale et les méthodes quantitatives expérimentales et quasi-expérimentales.The thesis is built on seven chapters. In chapter 1, we explore the views on poverty of a sample of poor women. In chapter 2, we review the literature on the use of time-diary in research. Chapter 3 develops and investigates the diary method as a qualitative non-experimental impact evaluation tool. For this objective, we study "the household economic portfolio model (HEP)“ a comprehensive impact evaluation model designed by Chen and Dunn (1996) that overcomes the obstacle of fungibility of money. We propose a modified version (M-HEP), a simplified framework for non- experimental evaluation of impact with clear assessment units and efficient measurement tools. The collection of simple self-reported information on the daily use of time and money is suggested for implementing the model. We test our proposition with a case study from Cairo. In chapter 4, we provide another test of the combined diaries through a case study on two poor single mothers one of whom is handicapped. In chapter 5, we present a fina1 example on the combined diary of a poor woman. The study highlights one limitation in the non-stylized combined diary approach. In chapter 6, we use experimental games in Cairo to study two aspects of behavioral microfinance by comparing microfinance clients to non-clients. In chapter 7, we present an impact evaluation study on microfinance in Mali, using the quasi-experimental statistical technique. Finally, we conclude the thesis suggesting applications of the M-HEP, and comparing the three methods used in the thesis. This comparisons aims to evaluate the advantages and disadvantages of each of the methods when used for evaluating microfinance impact
Joint use of poverty scoring and credit scoring: advantages and limitations of a new technique for socially oriented and sustainability-minded microfinance institutions
No full textFinancial institutions face adverse selection, in which risky borrowers are more likely to seek and take up loans. When interest rates increase, adverse selection rises, often disproportionately. Microfinance Institutions (MFIs), which generally operate with higher interest rates, are more exposed to adverse selection. Thorough credit analysis, collateral, credit reporting, and the imminence of legal or social pressure reduce adverse selection.
When interest rates drop due to subsidies or operational efficiencies, non-poor individuals seek microloans, particularly when banks deny or cap their credits. This demand for larger loans can tempt MFIs, especially when they are pressured to increase loan volumes while controlling costs. When MFIs seek to accommodate those who should not need microloans, they face a different form of adverse selection specific to microfinance. The significant presence of wealthier borrowers can damage an MFI’s reputation. If such borrowers pose a greater-than-expected credit risk, because lenders might equate wealth with creditworthiness, wealthier borrowers can undermine the financial sustainability of the MFI.
Financial institutions, including MFIs, can use credit scoring to mitigate the first type of adverse selection. Credit scoring helps identify risky borrowers, allowing institutions to reject high-risk applications, price loans based on credit risk, and adjust the required guarantees.
To address the second type of adverse selection, MFIs can use poverty scoring. Similar to credit scoring, poverty scoring identifies loan applicants with a high probability of experiencing poverty. This technique allows MFIs to remain focused on their mission of serving the poor.
This thesis is the first to examine the joint use of credit scoring and poverty scoring in microfinance. It reveals the non-linear relationship between poverty and credit risk, showing that double bottom-line MFIs experiencing both types of adverse selection must use the joint technique to remain sustainable and focussed on financially excluded clients
Work-sharing from Different Angles: A literature review
No full textCould work-sharing solves the problems of unemployment, inequality and global warming, and yet produce a happier world? This literature review takes a multidisciplinary view of the problem. We find that theoretically work-sharing can do all these things, but the existing evidence of its performance is debatable and there are hesitations from industry to implement it. We recommend a global initiative, riding on the sustainable development wave, with an appealing narrative to create a just distribution in today's world.info:eu-repo/semantics/publishe
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