9 - Micro-finance: Definition: Is the act of giving loans...

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Micro-finance: Definition: Is the act of giving loans on a smaller scale. The supply of loans, savings and other basic financial services to the poor. Significance: To empower those who do not have access to the formal financial sector. Its purpose is to smooth consumption levels, significantly reduce the need to sell assets to meet basic needs, a source of capital (FUNDAMENTAL) cope with sudden increased expenses assets, death, serious illness, etc. Cite/Example: “The Hidden Wealth of the Poor.” The Economist . An example is KIVA and Yunuz and how he believes that capitalism limits people who aren’t in the formal financial sector. ELF (Ethno-Linguistic Fractionalization): Definition: ELF gives the chance that two randomly selected members of the population will be of different ethnicities. Ranges from 0.0 to 1.0. High scores (>0.7) indicate fragmentation (many small groups). Significance: The higher the ELF, the slower the growth, very diverse (fragmented) countries grow most slowly. There seems to be something inherent in fragmentation that causes
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This note was uploaded on 11/17/2011 for the course IDS 100B taught by Professor Ross during the Spring '11 term at UCLA.

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