Microfinance Independent Study Proposal

In this Independent Study, I propose to study an emerging method of poverty alleviation in the United States: Microfinance. As a member of the Hamilton College Microfinance Group, I have helped give some minor loans to local business people and would like to know the greater potential of Microfinance in New York State, specifically the greater Utica area. Microfinance has been a legitimate source of poverty alleviation in underdeveloped countries, but has not yet been attempted on as large of a scale in the United States. Developed countries face different poverty challenges than underdeveloped countries, but many developed European countries have adapted Microfinance techniques of the Grameen Bank (the first Microfinance Bank, created in Bangladesh by Muhammad Yunus) and I believe the United States could also. Hamilton College happens to be located in an economically depressed area that could benefit from financial services that do not discriminate against a lack of credit.
The overall purpose of this study is to increase my own understanding of the  history of Microfinance, its recent emergence in the United States and develop a model to potentially apply in the Utica NY area.  The model will be created based on research of historical Microfinance movements and those currently going on in the US. I will pay specific attention to Microfinance models applied in the central New York area and adapt them to best fit the city of Utica. My goal for this study is to increase the opportunities of the Hamilton College Microfinance in the community for future years and I will be meeting with the club on a regular basis throughout the semester to keep them involved with this study.

Objectives:

1.    Develop a greater knowledge of Microfinance in other countries of the world, paying specific attention to the Grameen Bank created by Muhammad Yunus in Bangladesh. Learn the differences between the application of Microfinance in undeveloped and developed countries and look into successful applications of Microfinance in developed European countries.

2.    Through research, and interviews learn more about the emerging Microfinance movements and banks in the United States. Get in touch with and pay specific attention to others in the central NY area who have attempted Microfinance.

3.    Create a model to be applied to the city of Utica New York based off of adaptations of successful Microfinance projects in the United States. The Microfinance club could in future semesters attempt to implement the recommended model.