Introduction to Sociology


Watch this video until the 2 minute 10 second mark to learn more about microfinance and the importance of generating productivity through loans


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Watch this video until the 2 minute 10 second mark to learn more about microfinance and the importance of generating productivity through loans.
https://youtu.be/_LK4XMF2u8Y

Slide 4

Microfinance and Food



In "The Role of Microfinance in Right-Based Approach to Food in Africa" (2014), Mago Stephen and Mutami Cephas investigated the effectiveness of microfinancing for prospective entrepreneurs based on the assumption that access to food is a basic human right. 
The authors found that "microfinance has a positive contribution towards rights to food and food security," but that the key to successful microfinance is "proper management" of such programs, especially in the form of careful follow-up after the initial disbursement of aid.
Slide 5
In addition to helping some entrepreneurs have enough up-front capital needed to start companies, microfinance loans also help alleviate poverty by increasing food accessibility. 
Read the following quote from the article:
The provision of financial resources to the poor has an impact of improving their economic conditions. This will in turn lead to better access to food hence improving the overall food security...Food production is an important component of food availability, accessibility and adequacy. Small-scale farmers play a significant role in the production of food. For example, the International Institute for Environment and Development’s (2012) blog states that Brazil’s Zero Hunger program has received immense contribution from small-scale farmers. Farmers who have access to microfinance have an opportunity to improve their production. Improved productivity makes them, and the communities to have access to economically affordable food items. On the other hand, lack of access to financial resources will affect productivity negatively. Reduced food productivity will also lead to poor food access hence the right to food is violated. Such violation creates a vicious cycle of poverty and the poor hardly climb out of poverty.

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