General Assembly 2nd Committee (Economic and Financial)


Isabella De Oliveira
South Africa

Cite as

Forum: General Assembly 2nd Committee (Economic and Financial)
Issue: The Role of Microcredit in Promoting Economic Development Country: Canada

The delegation of Canada believes that Microcredit has and will have a role in promoting Economic development especially in developing countries. Most banks are opposed to Microcredit because of the uncertainty and risks, but there are many benefits to Microcredit. Originating from Bangladesh, Microcredit has helped many Bangladeshis, according to BBC News "Microcredit lifted 10 million Bangladeshis out of poverty between 1990 and 2008" this demonstrates that Microcredit has been profitable and constructive in building a robust economy for small businesses. Granting small loans, individuals living in poverty allows them to become more finically independent, it supports entrepreneurs that build a layer of small start-up businesses in an economy that provides growth of jobs and disposable income, as well as an increase in productivity output, resulting in economic growth. Microcredit should not only apply to developing countries but also developed countries, every coun...