nep-mfd New Economics Papers
on Microfinance
Issue of 2006‒07‒09
one paper chosen by
Ana Ogarrio
Kennedy School, Harvard University

  1. “Natural Savings”: A New Microsavings Product for Inflationary Environments. How to Save Forests with Savings for and by the Poor? By Marek Hudon; Bernard Lietaer

  1. By: Marek Hudon (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and Harvard University, Boston.); Bernard Lietaer (Center for Sustainable Resources, University of California at Berkeley)
    Abstract: Decentralized sustainable resource management in developing countries is important both from a poverty-reduction and an ecological viewpoint. At the same time, no financial instrument is available that enables small savings to be protected against the vagaries of monetary instabilities and inflation. This paper proposes a solution that would address all three issues simultaneously: an inflation-proof savings instrument, fully backed by the organic growth process of a local resource, which at the same time gives a market-based financial incentive to protect that natural resource. A specific example involving sustainable forestry plantations in the Third World is provided.
    Keywords: savings, microfinance, natural resources, deforestation, inflation, sustainable development, poverty reduction.
    JEL: G21 G32 L22 L31 O16 P23 Q14
    Date: 2006–06

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