HYL

 Ha Yeon Lee 11B

1. I am considering the subject of Economics.

2. I have read 2 extended essays and they are titled, -“The impact of SARS on the economy of Hong Kong” (a student essay found in a folder in the library: Student Essays – Group 3. History, Geography and Economics) -“Is Starbucks Coffee a Veblen Good in Beijing?” (a student essay found with this call number: IB student essays – Group 3. History, Geography and Economics)

3. I have carefully read the Economics subject description and the criteria. 4. I have explored the researchstory wiki and have become familiar with the navigation. I can easily find due dates, session expectations, and MLA format.

__**Date: September 15, 2010**__ -Tentative Thesis: Not just a simple tool for bringing economic growth of the developing nations, microfinance (i.e., microcredit) fosters economic development and welfare by enabling workers of the developing nations to be more productive.

**__Date: September 13, 2010 __**

 m **Research Question: **How effective is the micro-finance (i.e. micro-credit) for increasing economic growth and enhancing economic development in China?

 m **Annotated Bibliography ** Ocampo, Jose Antonio. “Resource Library”. //Year of Microcredit 2005.// 2010. United Nations Capital Development Fund (UNCDF). 20 May. 2010. < [] >. //Year of Microcredit //<span style="color: windowtext; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;"> 2005 website was established prior to 2005 in preparation for the coming of the microfinance year. This website functions as a great guide for Extended Essay research as it provides a diverse body of sources on the topic of microfinance and makes connections to the progress made on the United Nations Millennium Development Goals. The brochure posted on this website, titled “How can $100 change an economy?”, clearly outlines key topics to be discussed about microfinance. The information obtained from this website is both reliable and highly accurate as the website is published and developed by a non-governmental organization for worldwide usage. <span style="display: block; line-height: 18pt; margin: 0cm 0cm 0pt 40pt; mso-layout-grid-align: none; mso-para-margin-left: 4.0gd; text-indent: 23.8pt;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Pollin, Robert, et al. "Microfinance - opposing viewpoints." //Gale Opposing Viewpoints in Context//. Gale, 2010. Web. 14 August. 2010. <__http://ic.galegroup.com/ic/ovic__>. <span style="display: block; margin: 0cm 0cm 0pt 42.55pt; mso-add-space: auto; mso-char-indent-count: 1.77; text-indent: 21.25pt;"><span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">The online database, //Opposing Viewpoints Center//, publishes journals, news articles, columns, and other kinds of multimedia text to show a wide range of perspectives from different individuals on the same topic. For the IB Extended Essay investigation purpose, the source provides great insights into both sides of the arguments on microfinance; some say it is a very effective way to eradicate poverty, while others say it rather deteriorates a country’s economy. Maintaining balance is very important; therefore, it is necessary to read biased articles from opposing sides to view the topic of microfinance with objectivity.

<span style="display: block; margin: 0cm 0cm 0pt 42.55pt; mso-add-space: auto; mso-char-indent-count: 1.77; text-indent: 21.25pt;"><span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">York, Beryl. “What is Microfinance?” //Microfinance Gateway.// 2010. Consultative Group to Assist the Poor (CGAP). 18 May, 2010. < <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">[] <span style="font-family: 맑은 고딕;">>. <span style="display: block; margin: 0cm 0cm 0pt 42.55pt; mso-add-space: auto; mso-char-indent-count: 1.28; text-indent: 15.35pt;"><span style="color: windowtext; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">The //Microfinance Gateway// website has listed frequently asked questions about microfinance in bullet points. The wordings are easy to understand and the format, especially, is visibly outlined to make it accessible for the viewers of all ages. Through quick skim of information, it is possible to get a big picture of what microfinance is, its aims, and how it should work to help the impoverished in the developing world.

<span style="display: block; margin: auto auto auto 42pt; mso-add-space: auto; mso-para-margin-left: 4.2gd; text-indent: 16pt;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Yunus, Muhammad. //Banker to the Poor: Micro-lending and the battle against world poverty.// New York: Public Affairs, 2007.

<span style="display: block; margin: auto auto auto 42.6pt; mso-add-space: auto; mso-char-indent-count: -4.0; mso-para-margin-left: -.54gd; text-indent: -48pt;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">//Banker to the Poor// is an autobiography written by Muhammad Yunus, the founder of the Grameen Bank and the father of modern micro-credit. The autobiography is about how he started the Grameen Bank in Bangladesh in the 1970s and gave the impoverished “something far more valuable than a plate of food” (Yunus, pg.1). Since this is based on a true story, it is a great source to get insights into the success of microfinance and do a case study of Muhammad Yunus as well as his microfinance institution. Muhammad Yunus strongly believes that small loans can make big dreams come true and only self-initiative is the weapon to wash poverty out from the world.

**<span style="color: #808000; display: block; font-family: 'Times New Roman',Times,serif; font-size: 210%; text-align: center;">__Pathfinder for Extended Essay__ **
<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">m<span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 8pt; fontweight: normal; lineheight: 115%;">﻿ **<span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">Title, Introduction, Scope: ** <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">People living in poverty face a daily battle just to survive. To them, the future is fearful and appears to have little hope. As Mahatma Gandhi said, poverty is global violence that needs to stop. Although there are many ways to help eradicate poverty in the world, one of the promising solutions to achieve long-term poverty alleviation is "microfinance". <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-bidi-font-weight: bold;">Microfinance is the supply of loans, savings, and other basic financial services to the poor that helps them to buy equipment they need like tractor or sawing machine to start small businesses or increase productivity. The most well known form of microfinance is microcredit, small loans given to low-income entrepreneurs who lack the ability to receive loans from a formal bank. This idea from economics can serve as a strong tool to help lift the impoverished out of the poverty trap. <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-bidi-font-weight: bold;"> The purpose of this pathfinder is to demonstrate what sources and researching strategies could be used to find out how promising and effective microfinance is in terms of achieving poverty alleviation. Therefore, it will be very important for me to look for sources that show opposing viewpoints, so I can make a close comparison and judge the effectiveness of microfinance. Getting the background knowledge on microfinance would also be a very important aspect of my research for Extended Essay. <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-bidi-font-weight: bold;">

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">m **<span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿General Advice for Researchers: ** <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-fareast-font-family: 굴림; mso-fareast-language: KO;">Most importantly, if you are researching on microfinance and how it works, you should look into the birth of microfinance – how this idea progressed to the stage where it is now. Before making any deep, analytical research, you should learn the story of Muhammad Yunus, the founder of Grameen Bank who developed modern micro credit in 1970s in Bangladesh to give small loans to the poor. And then you may as well do some real-life case studies to analyze whether each of them was uccessful in helping the impoverished to raise their living standards by themselves.

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿Essential and Supplmentary Questions: **

<span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-fareast-font-family: 굴림; mso-fareast-language: KO;">-What exactly does microfinance mean? Why is this termed this way? (why “micro”?) -Why can’t poor people just go to a bank to borrow loans? -How spread is microfinance? -How successful is microfinance so far?

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿Operational Definitions/New Vocabulary: ** <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;"><span style="font-family: 'Times New Roman',Times,serif; font-size: 12pt; lineheight: 115%;">﻿ -Microfinance: “Micro” means small. The financial services of microfinance usually involve small amounts of money like small loans and small savings. That’s because someone who doesn't have a lot of money isn't likely to take out a $5,000 or $10,000 loan. Hence it is termed "micro" finance <span style="display: block; font-family: 'Times New Roman','serif';">.  <span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">(//From// //[|http://www.microfinancegateway. com/section/faq]//)

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">m **<span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿Books: **

<span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">-Yunus, Muhammad. Banker to the Poor: Micro-lending and the battle against world poverty. New York: Public Affairs, 2007

Banker to the Poor is an autobiography written by Muhammad Yunus about how he got to start the Grameen Bank in Bangladesh and how he could give poor people the power to help themselves by offering them “something far more valuable than a plate of food” (Yunus, pg.1). Since this is based on a true story, it is a great source to get insights into the success of microfinance and do a case study of Muhammad Yunus and his microfinance institution.

<span style="color: windowtext; display: block; font: 8pt Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; font-style: normal; font-variant: normal; fontstyle: normal; fontvariant: normal; fontweight: normal; line-height: normal; lineheight: normal;">﻿Susbscription Databases: ** <span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">-For simple definition and background knowledge for microfinance, it is very helpful to use Wikipedia or other encyclopedias like Worldbook, Britanica, and Oxford Reference Online to get a big picture of micro-lending and Muhammad Yunus.

<span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">-For some discussions of different perspectives on microfinance, it is useful to view articles posted on the Opposing Viewpoints Resource Center as well as Facts on File – Issues and Controversies. Gaining contrasting viewpoints on one topic is crucial when it comes down to judging and assessing.

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m** <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">**﻿Gateway or Portal Sites on the Internet/Specific Websites**: <span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">1. []

<span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">The above link leads to a website that was established prior to 2005, which was the year of microfinance. This is a great guide on my subject as it gives diverse body of sources on the topic of microfinance and links with the progress made on the UN Millennium Development Goals. The brochure posted on this website, titled “How can $100 change an economy?”, clearly outlines key topics to be discussed and explained about microfinance. Research made from using this website is very reliable as it is created by a non-governmental organization for worldwide usage in year 2005.

<span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">2. []

<span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">This website named “microfinance gateway” has listed frequently asked questions about microfinance in bullet points briefly. The wordings are easy to understand and the format, especially, is visibly outlined to make it accessible for the viewers.

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿Online Journals/Articles: ** <span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">1. For my purpose of the investigation on microfinance, it is required to closely examine both sides of the argument on the idea of micro-lending to poor people. The database Opposing Viewpoints Center has great journal articles that are strongly biased on one side like the article “Microloans Do Not Encourage the Economic Growth That Developing Countries Need”. By typing the keyword “microfinance”, we can view various sources on micro-lending from magazine, journals, news, and multimedia.

<span style="display: block; font-family: 'Times New Roman',Times,serif; font-size: 12pt;">2. Another good source for news and journal articles on microfinance is []. In specific, there are continuous updates on how microcapital works to improve the lives of poor people; however, the information provided sometimes goes beyond the necessary as it is only linked with microcapital and is too professional.

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿Organizations, Associations: **

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-fareast-language: KO;">-//Wokai// – based in China: //<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">Wok ////<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">ai //<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">, meaning “I Start” in Chinese is founded in March 2007 by Casey Wilson and Courtney McColgan to help the impoverished in rural China.

<span style="color: #000000; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO; msofareastlanguage: KO;">-//Kiva// – based in the United States

<span style="color: #000000; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO; msofareastlanguage: KO;">-//Gumball Capital// – based in the United States

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿Experts/Scholars **

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-fareast-language: KO;">-Casey Wilson (founder of //Wokai//)

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Muhammad Yunus (founder of //Grameen Bank//)

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿Video: **

<span style="display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Short clip on the story of microfinance recipients made by //Wokai// to get more support of funds

<span style="color: windowtext; display: block; font-family: Wingdings; font-size: 8pt; font-weight: normal; line-height: 115%; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings; mso-fareast-language: KO; msobidifontfamily: Wingdings; msofareastfontfamily: Wingdings; msofareastlanguage: KO; msolist: Ignore;">**m <span style="color: #000000; font-family: 'Times New Roman',Times,serif; font-size: 12pt; fontweight: normal; lineheight: 115%;">﻿Keywords/Phrases/Subject Headings: **

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-fareast-language: KO;">-Microfinance

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Micro-lending

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Micro-credit

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Small loans

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Financial services

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Muhammad Yunus

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Grameen Bank

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; font-weight: normal; line-height: 115%; mso-fareast-language: KO;">-Poverty

<span style="color: black; display: block; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-fareast-language: KO;">**__Date:__** May, 26th, 2010