Bridging Social Gaps: A Theoretical-Conceptual Approach to Local Development and Microfinance

Abstract

The phenomenon of poverty as a public problem invites us to reflect more and more on the responsibility that the State has towards its citizens . The objective of this article is to explore the different theoretical approaches to the notions of local development and microfinance in order to establish them as tools for addressing the socioeconomic needs of people with limited resources . Thus, in this work we start from the hypothesis that local development and microfinance are , in fact , fundamental instruments for responding to social needs , as causes of poverty . In reality , outside of official banking and informal lenders , microfinance institutions have revolutionized the financing of economic and social development , especially in Asia , Africa and Latin America . Through an analytical review of the literature , we come to the conclusion that the rationalization of microfinance is a conceptual operation of utmost importance ,