Analysis of Microfinance Lending and Credit Assessment Methodology

Analysis of Microfinance Lending and Credit Assessment Methodology Microfinance Institutions (MFIs) core activities are driven by a social mission through provision of full range of banking needs to poor people for productive purposes, thereby contributing to the developmentl objective of poverty reduction. MFIs products and services includes micro-credit, micro-savings, micro-insurance and also remittances. Microcredit program is providing financial capital to the poor household in order to engage them in income generating activities for alleviating poverty mostly to finance small businesses agricultural loans. Typically this type of lending is not secured by any collateral but granted based on the client’s ability to generate the necessary financial means for repayment based on his or her business activities. Most of the terms and conditions for microcredit loans are flexible and easy to understand. However, there is no standard lending and credit assessment methodology employed by MFIs. We are motivated to explore and document this resear ch gap. 1.2 The Innovation and Development of Microfinance Industry in Malaysia The provision of microcredit is nothing new in Malaysia. Poverty eradication programs involve provision of credit at subsidised rate to the poor has been around since 1970s after formation of the New Economic Policy (NEP) that was instituted in 1970. The earlier micro credit program was mainly carried out by credit unions, co-operatives, specialised credit institutions and NGOs. The provision of small financing designated mostly to finance micro enterprises, agriculture sector for poverty reduction and to improve income of the Bumiputera. The legislation for microfinance regulation in Malaysia includes, Moneylender Act 2002, Banking and Financial Institution Act 1989, Development Financial Institution Act 2002, and Cooperatives Societies Act 1993, (Zakiah, 2004). The Microfinance business models are based on mass market, cooperatives, monoline and distributor network (BNM, 2010). Majlis Amamah Rakyat (MA RA), a council of trust to the Bumiputera and Credit Guarantee Corporation (CGC) are some of the pioneers to introduce micro credit to micro enterprises. The rural credit institutions comprising of Agriculture Bank of Malaysia (Agrobank), Farmers Organization Authority (LLP), Federal Land Development Authority (FELDA), Rubber Industry Smallholders Development Authority (RISDA) and other agro-based Co-operative Societies provide micro credit for the agriculture sectors. There are also a number of non-governmental organizations (NGOs) that engage in micro credit provision (Kasim and Jayasooria, 1993). These include Amanah Ikhtiar Malaysia (AIM), Yayasan Usaha Maju (YUM) and Sabah Credit Corporation (SCC) in Sabah, Koperasi Kredit Rakyat (KKR) in Selangor. Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN) is a government agency micro credit provider. While, Malaysian Islamic Economic Development Foundation (YaPEIM), a cooperatives institution providing Islamic microcredit program based on al -rahnu concept in Malaysia. Prior to 2003, Commercial banks involvement in microfinance program are just limited to extending lines of credit to AIM, and as a mediator for schemes such as the loan fund for hawkers and petty traders operated by the Credit Guarantee Corporation (CGC). In May 2003, the government launched a Micro Credit Scheme, particularly stimulating agricultural production activities as well as expanding small and medium enterprise activities. Two banking institutions namely Agrobank and Bank Simpanan Nasional (BSN), and AIM have been given the responsibility to carry out the scheme. The scheme is collateral free, and borrowers are eligible for a maximum loan of up to RM20,000 with interest rates charged at 4% per annum on reducing balance.

State Counter Terrorism Strategy and Plans for Japan Essay

State Counter Terrorism Strategy and Plans for Japan - Essay Example Aum Shinrikyo is an indigenous terrorist group arising in Japan (Hidaeki, 2003). The group also carried out certain marginally successful attacks on the Diet and the Crown Prince’s wedding with botulin toxin and attempted an anthrax attack on the people of streets of Tokyo (Branscomb, 2004). This paper primarily deals with the counter terrorism strategies and action plans for Japan in current context and also for future. Defining Counterterrorism Counterterrorism is a difficult concept to define, especially in the context of western democracies. Paul Wilkinson writes that, â€Å"There is no universally applicable counter-terrorism policy for democracies. Every conflict involving terrorism has its own unique characteristics†. Both Paul Wilkinson and Louise Richardson and many others argue that, Western democracies must have respect for the rule of law and civil liberties should be followed in maintaining their counterterrorism strategies. Counterterrorism operations are subject to continuous change according to the nature of the threat (Rineheart, 2010). Counterterrorism as defined by the U.S. Army Field Manual stands as â€Å"Operations that include the offensive measures taken to prevent, deter, preempt, and respond to terrorism† (Rineheart, 2010). This definition of counterterrorism is more concrete but has its own weaknesses and strengths. Though it correctly explains that counterterrorism is an all-inclusive doctrine including prevention, preemption, deterrence, and responses which would require bringing all aspects of the nation’s power to be exposed both domestically and internationally, yet essentially it differentiates nothing. If an effective counterterrorism doctrine is meant to follow the principle that ‘whatever is needed, whenever we need it,’ then this could create problems with developing effective counter strategies, allocating resources, and determining accountability – it might make the concept o f counterterrorism rather worthless. There are advantages to an all-encompassing approach to counterterrorism. It allows the governments to recognize the complexities of responding to terrorism; it also provides a rhetorical tool that reinforces the notion that there is no simple fix to a nation’s terrorism problem (Rineheart, 2010). International Counter-Terrorism Policy of Japan There are a number of dimensions to the counter-terrorism strategy of Japan. The government’s paramount responsibility is to guard the security of Japan’s territory and citizens against terrorist acts (Hideaki, 2003, p. 55). The basic policy of Japan to counter terrorist activities is by strengthening the national counter terrorism measures. International cooperation and capacity building assistance to countries in need is also enumerated in the list of counter terrorism activities for Japan. The Japanese government in December 2004 adopted the "Action Plan for Prevention of Terrorism" which included taking16 ‘Urgently Needed Terrorism Prevention Measures’. In lieu of this certain urgent measures were taken. Japan has actively committed to the negotiations on relevant treaties in the UN and other international bodies. It has ratified and implemented all of the 13 international counter-terrorism conventions and protocols, most recently, the International Convention for the Suppression of Acts of Nuclear Terrorism in August 3, 2007. Japan has also been participating in the ongoing negotiations of the Comprehensive

Art Essay Example | Topics and Well Written Essays - 250 words - 18

Art - Essay Example Deaccessions of the objects can only take place when the objects to not match the mission of the museum. The re-opening of museum in Bagdad was meant to give political mileage to the politicians. In an open letter addressed to the government by Donny George and Rakowitzs, expressed concerns over shortest duration with which the preparation of the museum under-went for its re-opening. Despite all these efforts, the government through the Minister of Tourism went ahead to re-open the museum. The notion that of the â€Å"strong takes it all† is a common phrase frequently put into practice in Iraq today. This is evident from the creation of the ministry of tourism to oversee the management of the museums. This is contrary to the old system where the ministry of culture had this mandate. The re-opening of the museum was more of an exhibition as stated by Amira Aidan in an email. This is because; 8 out of the 26 rooms were open and a few items on display. Security situation in Iraq prompted a policy of allowing 50% of the staff to make it to work on a single day with the other 50% on the following day. Close to 50% percent of the objects missing from the museum due to security lapses in the country. It is important to note that museums play a significant role in preserving a country’s heritage through generations. Governments should therefore come up with relevant policies to ensure that museums are preserved (Merritt and Reilly 23-25). Regulations that undermine the independent operations of the museum would eventually make them collapse due to loss of objects within the