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6. Institutional Change - Economic Growth / Development - Coggle Diagram
6. Institutional Change - Economic Growth / Development
Improved Access to the Banking System
Result of weak financial systems
Improve access to banking system - help growth & development
2 Areas of Possible Treatment
Microfinance - Good Specifically to the poor
Micro-credit
-Provision of small loans to individuals with no access to traditional sources
-Given to start up micro company
-Provide protection against unexpected occurrences, seasonal problems, and help families gain and regular income, build wealth and escape poverty.
-Women are main recipients as reduction in women's poverty lead to improvements for children
Mobile phone banking
-Increased access
-Sending money via text to receivers phone numbers
Exp Contribution to development:
1) Hospitals in Tanzania send money to women to pay for bus fares
2) Sending remittances home is more cost-effective and secure
Increasing Women Empowerment
Process in which women gain power and control over their lives and acquire ability to make strategic choices.
Strategies:
Increasing support for education of females
Increasing access to healthcare
Creating safe environment in home, workplace and society
Establishing rights for women own property and other assets
Increasing female involvement in decision making
Reducing Corruption
Corruption
-Abuse of public office for personal gain destroys people's trust in government and institutions, public policies less effective and fair, and tax payers money away from merit and public goods
-Limits beneficial economic growth to all
-Governments reserves lower tax revenue
1) Bribes to avoid tax
2) Avoid paying as government is corrupt
IMF measures to fight corruption
1) Invest in high levels of transparency and independent external scrutiny
2) Reform institutions
3) Build a professional civil service
4) Keep pace with new challenges as technology and opportunities for everyday evolve
5)More cooperation to fight corruption
Transparency Internal ways to reduce greater and competition
-Collect, analyze and disseminate greater desegregated data
-Recognize and address specific gendered forms of corruption
-Include women in anti-corruption decision making
-Empower women
-Gender sensitive reporting mechanisms
Promoting Secure Property Rights and Land Tenure Rights
-Division of 2 groups:
1) Ones who have defined property rights
2) Those who do not
-Lack of rights lead to 'dead capital' and poor are trapped in 'tragedy of commons'.
-Reforming legal structures to ensure property titles, allow poor to use their small homes or land to borrow money and start business
Legal Reforms to Improve Property and Land Rights necessary for Economic Growth and Development
1) Secure land rights are an important pillar for agriculture
2) Secure land rights are essential for urban development
3) Secure property rights help protect environment
4) Secure property rights and access to land are crucial for private sector development and job creation
5) Secure property rights are important for empowering women
6) Secure property rights help secure indigenous people's rights
7) Secure property rights are vital for keeping peace
