Microfinance and

Development
Assignment

1800s 1900s
Microfinance in Latin
America
Peoples Bank Karl Marx: His Books,
Theories, and Impact
Friedrich Engels: Overview,
History, Legacy
Feudalism and Bourgeoisie
Credit Unions by Friedrich Defined
Wilhelm Raiffeisen
The Feudal Mode of Production
1800s - People’s Bank
• It was chartered by the State of
Kansas on May 20th, 1887 to a
group of businessmen and investors
from St. Louis, Missouri.
• It was opened for business on July
1888 and has operated continuously
ever since under its original name
and charter and in its original
quarters.
• The bank began expanding
geographically with the opening of a
loan production office in Medicine
Lodge, Kansas in the late 1980's.
• The People's Bank today employs
nearly 100 people in its six locations.
1800s - Friedrich Wilhelm Raiffeisen
(30 March 1818 – 11 March 1888)
1818-1886 A New Era Begins

1886-1918 Beginnings of the Raiffeisen Idea in Austria

1918-1939 Between the Wars

1945-1970 New Beginnings in the Second Republic

1970-1986 Modernisation

1986-2006 Gradual Internationalization

2007-2009 Financial Industry Under Close Scrutiny

Friedrich Wilhelm Raiffeisen was a German

mayor and cooperative pioneer. Several credit 2010 Meger of the Business Segments of RZB with Riffeisen International

union systems and cooperative banks have

2013 Optimisation of Structures and Processes
been named after Raiffeisen, who pioneered
rural credit unions.
2015-2017 Transformation Program and Merger
1900s – Microfinance in Latin America
Historical Overview
• Microfinance is a relatively new phenomenon. Historically, poor people lacked access to financial services
because banks assumed that the provision of small loans and deposit services would be unprofitable.
Precursors to Microfinance: Subsidized Credit and Informal Lending in the 1960s
• Subsidized Credit Delivery - During the four decades following the war, governments, foreign donors and
international agencies injected tens of billions of dollars into low-income countries in Latin America, Asia
and Africa.
• Informal Moneylenders - Private moneylenders – pawnbrokers, professional moneylenders, shopkeepers,
traders and landlords, among others – have dominated local credit markets in developing countries for
decades
Microfinance in the 1970s: Pioneering NGOs and the “Demonstration Effect”
• Grassroots NGOs were at the forefront of early microfinance experiments: they initiated operations in
remote areas, designed appropriate loan products for low-income borrowers and pioneered group- and
character-based lending methodologies.
Microfinance in the 1980s: A Decade of Change
• The 1980s represented a turning point in microfinance: with changing attitudes, changing realities and
changing approaches, it became clear for the first time that microfinance could achieve large-scale
outreach on a sustainable basis.
1900s – Karl Marx
(5 May 1818 – 14 March 1883)
Philosopher, Published the “The Communist Manifesto” with
Social Friedrich Engels (1848)
Theorist,
and
Economist Believed in the labor theory of value to explain the
relative difference in market prices

Presented a great challenge to laissez-faire

economics in “Das Kapital” (1867)

Developed theory of historical materialism

Marx's Capitalism is an economic system in which private individuals or

Theories businesses own capital goods. At the same time, business owners
(capitalists) employ workers (labor) who receive only wages; labor
doesn't own the means of production but instead uses them on
behalf of the owners of capital.

Socialism is a populist economic and political system based on

Karl Marx was a German-born philosopher, collective, common, or public ownership of the means of
economist, political theorist, historian, sociologist, production. Those means of production include the machinery,
tools, and factories used to produce goods that aim to directly
journalist, and revolutionary socialist. His best-known satisfy human needs.

works are the 1848 pamphlet The Communist
Manifesto (with Friedrich Engels) and the three-
volume Das Kapital (1867–1894); the latter employs
his critical approach of historical materialism in an
analysis of capitalism and represents his greatest
intellectual achievement.
Communism is a political and economic ideology that positions
itself in opposition to liberal democracy and capitalism, advocating
instead for a classless system in which the means of production are
owned communally and private property is nonexistent or severely
curtailed.
1900s - Friedrich Engels
(28 November 1820 – 5 August 1895)
Philosopher, His collection of work with Karl Marx laid the ground
Economist, work for modern communism
and Social
Scientist

Engel’s and Marx’s work includes “The Condition of

the Working Class in England”, “The Communist
Manifesto”, and “Das Kapital”

Opposed organized religion and capitalism, much

of which was influenced by German philosopher
Georg Wilhelm Friedrich Hegel

Major The Holy Family (1844)

Works and
Legacies
Friedrich Engels was a German philosopher,
writer, and social scientist during the 19th
century. Known for his collaboration with Karl
The Condition of the Working Class in England (1845)
The Peasant War in Germany (1850)
Herr Eugen Dühring's Revolution in Science (1878)

Marx, Friedrich Engels helped define modern Socialism: Utopian and Scientific (1880)
communism.
Dialectics of Nature (1883)

The Origin of the Family, Private Property and the

State (1884)
Feudalism and Bourgeoisie Defined
Feudalism
• For Karl Marx, what defined feudalism was the power of the ruling class
(the aristocracy) in their control of arable land, leading to a class society
based upon the exploitation of the peasants who farm these lands,
typically under serfdom and principally by means of labour, produce and
money rents.
Bourgeois
• According to Karl Marx, the bourgeois during the Middle Ages usually
was a self-employed businessman – such as a merchant, banker, or
entrepreneur – whose economic role in society was being the financial
intermediary to the feudal landlord and the peasant who worked the fief,
the land of the lord.
 THE FEUDAL MODE OF PRODUCTION
Rise of Feudalism
Exploitation of Peasants by Feudal Lords
The Medieval Town. Craft Guilds. Merchant Guilds
Classes and Estates of Feudal Society
Development of the Productive Forces of Feudal Society
The Birth of Capitalist Production in the Womb of the Feudal System
Primitive Capital Accumulation. Forcible Seizure of Peasant Lands
Peasant Serf Risings. Bourgeois Revolutions. Fall of the Feudal System
Economic Views of the Feudal Period
 References
• https://www.tpb.bank/more-info/history/
• https://www.rbinternational.com/en/who-we-are/facts-figures/history.html
• https://en.wikipedia.org/wiki/Friedrich_Wilhelm_Raiffeisen
• https://www.findevgateway.org/sites/default/files/publications/files/mfg-en-paper-the-co
mmercialization-of-microfinance-in-latin-america-apr-2009.pdf
• https://en.wikipedia.org/wiki/Feudalism#:~:text=For%20Marx%2C%20what%20defined%2
0feudalism,labour%2C%20produce%20and%20money%20rents
.
• https://en.wikipedia.org/wiki/Bourgeoisie
• https://www.marxists.org/subject/economy/authors/pe/pe-ch03.htm
• https://marxists.architexturez.net/archive/marx/works/1884/decline/index.htm
• https://en.wikipedia.org/wiki/Karl_Marx
• https://www.investopedia.com/terms/k/karl-marx.asp#toc-contemporary-influence
• https://www.investopedia.com/terms/c/capitalism.asp
• https://www.investopedia.com/terms/s/socialism.asp
• https://www.investopedia.com/terms/c/communism.asp
• https://en.wikipedia.org/wiki/Friedrich_Engels
• https://www.investopedia.com/terms/f/friedrich-engels.asp