Social Capital Measurement Of Community Based Organizations Essay

Social capital is defined as the capacity of social institutions, such as families, churches, schools, or other community organizations to make an investment of attention and advice, support and concerned interest in other community members according to reformer L.J. Hanifan. As a dependent of the community social capital is applied to my everyday life. It helps me to obtain resources for my education such as scholarships, teaches me how to work together with my peers, becoming a positive role model to youth, and build trusting relationships with others in the community. Social capital is seen as a support group from leaders in the community.

Social Capital is defined as the networks of relationships among people, enabling that society to function effectively. James Coleman’s “Social Capital in the Creation of Human Capital” examines the many benefits of social capital in a society. However, most forms of social capital are public goods and do not primarily profit the person who has to bring it about. Therefore, it’s not in his interest to bring it leading to a shortage. Coleman wants to apply economics’s principle of rational action to the social perspective to increase people’s willingness to socialize. On the other hand, Alejandro Portes’s “The Two Meanings of Social Capital” challenges Coleman’s concept by arguing that people shouldn’t

In both developing and emerging economies, microfinance has vastly and increasingly been seen as one of the most important means for enhancing the lives of the poor and therefore a major tool for economic and social development mostly in rural areas. Lately, contrary to this widespread belief, critics have raised eyebrows against this growing popularity of microfinance as a major tool for enhancing economic development. Contrary to belief, they are of the opinion that microfinance is a ‘make-belief’ that is hindering economic and social development rather than enhancing it.

A multidimensional and complex theory, political scientist Robert Putnam (1993) defines social capital as, “features of social organizations such as networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit” (Colton et al., 2015). Subsequently, sociologist Alejandro Portes (1998) defines individual social capital as, “the ability of actors to secure benefits by virtue of membership in social networks or other social structures” – and encompasses the concept through cognitive social capital (the perception of trust, belonging, and reciprocity) and structural social capital (via societal participation, involvement, and volunteering) (Colton et al., 2015). Another effect on overall social capital is time and trust poverty, or the lack in time and trust management needed to secure social capital (Colton et al., 2015). Furthermore, other implementations of social capital involve social cohesion and informal social control being the process of closeness within a community dependent on connection and willingness, and community actions to sustain order and closeness – whereby both lead to greater social accessibility (Barnhart & Maguire-Jack,

2011). Supporters of commercial microcredit claim that microcredit clients’ major priority is the accessibility to finance rather than its costs, Porteous (2006), claims that the main priority for microcredit clients is the structure of the loan rather than its price, what really matters is the loan size, type of the loan and disbursement timing and procedures. This claim is usually supported by steady demand on microcredit regardless of the charged rates, and mainstreaming about high rate of return for micro-enterprises.

Microfinance, has to some extent improved and strengthened relations amongst women within communities. Microloans provided to women in groups ensures that the economic burden of repayments is one which women no longer have to bear alone but is instead shared, reducing the anxiety and pressure levels felt by women. The lending of microloans to groups of women, has created a sense of social solidarity, as women who are often in the same financial position can all contribute to creating successful microenterprises monitored and controlled by each other, reducing the risk of financial failure and collapse in addition to the reduction of collateral. This can be viewed as a

For example, an article on ShangHai Security News reports the individuals’ herding behavior leads to Shanghai composite index rush to 6000 point and plunge below 2700 points.(Liang Yufeng 2006) Unintentional herding arises from investors analyse the same information by using same method, which often happen in fund managers. John R.Nofsinger (2011) found that the trading of institutional investors mainly drive the herding in stock markets. Walter and Weber(2006) found that mutual fund managers bought stocks then price rises and sold then falls. (Keith Redhead2008) Therefore, individuals may follow the strategy of institutional investors and result in unintentional herding.

Microfinance provides the basic financial services to low income people, who have lack to access to bank related services. This includes credit for instance, micro saving’s, micro insurance and micro leasing. The main focus of European Union is on microcredit because there is only limited experience with micro savings and micro leasing exists, it is due to the strict regulation, for instance with regard to deposit taking.

While a potential aid to the democratization process, an abundance of social capital may preclude democratization, depending on its nature. ‘Social capital’ represents “the links and connections among people that result in the creation of norms of cooperation and trust, and altogether constitute[s] a resource which individuals and communities can use for their

Understanding emotions and how we process information to make decisions is vital to investment success. This is true whether you manage your own portfolio or whether you have hired a professional portfolio manager to handle the task. The sad reality is that most professional money managers don’t understand that their emotional judgements are likely harmful to portfolio performance. Professional money managers are at the mercy of the investor’s behavioral biases without even realizing it. For example, if a professional money manager believes in investing for the long-term knowing that he will suffer from underperformance from time to time, he may not realize it but when he begins to

It is commonly argued that the lack of access to capital and financial services functions as a major barrier to attaining and sustaining adequate levels of socio-economic development for numerous communities and households across the world. According to the Global Financial Development Report (2014) by the World Bank, about two billion or 38% of adults in the world do not use formal financial services. This pandemic is even more alarming when contextualized further. Close to 73% of poor people remain unbanked, more than half of adults in the poorest 40% of households in developing countries, and about 80% of the poor living under the $2/day poverty line have no form of bank account due to a plateau of reasons ranging from costs, travel distances, and other burdensome requirements involved in opening financial accounts. To combat this undesirable phenomenon, the overwhelming majority of policy makers, donors, investors, academics, and practitioners enthusiastically welcomed the emergence of microfinance and promoted it as an inclusive, pro-poor, and sustainable form of finance. An alternative to mainstream finance, capable of reaching the most capital deprived enterprises, households, and individuals.

Zimbabwe’s financial sector has over the years been crippled by Non-performing loans. Non-performing loans arise from credit risk or default risk which as defined by Jorion(2003) is the risk of an economic loss from the failure of a counterparty to fulfill its contractual obligations. Its effect is measured by the cost of replacing cash flows if the other party defaults. Credit risk can thus be seen to contribute significantly to the profitability of an organization and hence the need to hedge against such risk. This study aims to assess the effectiveness of credit risk management tools which are being used by Microfinance institutions (MFIs) in Zimbabwe by assessing the effect of credit terms, client appraisal, credit control measures as well as credit collection policies on loan repayment. Microfinance Institutions by their nature are more vulnerable to credit risk owing to a number of reasons such as; that the primary clientele of MFIs consists mostly of those who face barriers in accessing financial products from traditional financial institutions Murdoch (2008), the scope of activities is mainly limited to lending that is a microfinance institution cannot engage into other activities done by the bank such as underwriting of securities and foreign trade operations among others .

Sohini Kar’s article revolves around the global financial market. However, her central focus is in Kolkata, India, where many who live in the slums owe microloans to private banks. The issue Kar raises is in a national platform, due to the fact that 60% of Indian population lacks formal financial services (481). This is a national issue due to fact that it traps many of their citizens in a never-ending cycle of debt, with no proper oversight. The time of her study was from 2009 to 2011, right after the financial crisis in Western countries. The author makes a comparison of the different dynamics loan officers are exposed to in terms of culture in India.

Microfinance is widely talked about throughout the world. Through the remote part of Bangladesh it kicked off its journey and gradually flew through the kingdom of light hovering clouds to spread its message. And the target group easily understood and promptly absorbed its mesmerising effect. This way credibility of the system was established within comparatively short span of time. In a World Bank estimate about 160 million from the developing countries at present take assistance through microfinance. However, credit goes to the Bengali economist Dr. Mohammed Yunus who invented in his factory the idea and threw it with a note that it would effectively absorb the shock of poverty and empower the

A majority of the Indian population lacks opportunities such as financial resources and thereby the ability to get jobs. They are stuck in an endless cycle which provides them with no opportunities to lift themselves out of poverty. Microcredit has been seen as a lifeline and as an opportunity by governments in developing countries, international funding organizations and donor agencies, in order to help the poor attain money since the 1950’s. It was in the 1950s and1960s, for the first time Indian Government started giving out loans to families in rural areas those who worked in the agricultural sector as well as city-dwelling families who were working in the unskilled sector to promote economic growth throughout India. Households in