Abstract
This Chapter describes the macro- and microeconomic context of development, highlighting the interrelated factors, institutions, and policies at different levels, which are related to the community. Thereupon, an assessment is given of the macroeconomic approaches in the struggle against poverty, followed by the microeconomic development for a better livelihood. As is also the case with the broader conceptualisation of poverty, it becomes clear from the increasing trends of utility-related research in micro-economics that the livelihood of the community consists of more than income alone, but also on access to better health and education, and on the optimisation of local knowledge and wisdom. Embarking on the general theory of economics, the view that individuals will maximise utility, that firms will maximise profit and that states will maximise welfare, which is conceptualised as more than just an aggregation of individual utilities of all citizens together, the supporters of the new approaches of Integrated Microfinance Management (IMM) and Integrated Community-Managed Development (ICMD) are advised to continue collecting data and case studies to accumulate evidence-based case studies of all the parties and stakeholders involved in the efficacy of their novel approach towards poverty reduction and sustainable community development.
Policymakers throughout the world have actively tried to improve financial markets in poor regions, but often with disappointing results.
Beatriz Armendariz de Aghion and Jonathan Morduch (2010)
Alkinoos Nikolaidis is deceased.
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Notes
- 1.
Appropriate Technology (AT) emerged in the course of the 1970s as an alternative development approach, triggered by the publication of the economist Schumacher’s (1973) Small Is Beautiful: A Study of Economics as if People Mattered. The new orientation became originally known as ‘intermediate technology’, focused on an alternative application of a small-scale, decentralised, labour-intensive, energy-efficient, environmentally sound, and locally autonomous process, which embarked on the notion of the introduction of new technologies to developing countries as people-centered. Recently, the concept of appropriate technology is also promoted as a new model of facilitating the introduction of innovations for sustainable development.
- 2.
Several models of consumer behaviour have been developed which focus on the factors which tend to influence behaviour. According to Kotler and Armstrong (2008), they can be classified as: (a) psychological factors (motivation, perception, learning, beliefs and attitudes); (b) personal factors (age and life-cycle stage, occupation, economic circumstances, lifestyle, personality and self-concept); (c) social factors (reference groups, family, roles and status); and (d) cultural factors (culture, subculture, social class system).
- 3.
Although many bankers hold the opinion that poor people are being helped by providing them with a bank account in order to get better access to financial services, an increasing number of reports indicate a growing number of people without bank accounts, while those who have accounts, however, continue to use alternative financial services including loans. According to Servon (2013), in the United States the number of people who are ‘unbanked’ increased nationwide from 10 million in 2002 to 17 million people in 2013, while 43 million became underbanked. She found that banks are often costlier for the poor than check cashers and other alternative services.
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Joesron, T.S., Nikolaidis, A. (2019). Macro- and Microeconomics and Social Marketing. In: Slikkerveer, L., Baourakis, G., Saefullah, K. (eds) Integrated Community-Managed Development. Cooperative Management. Springer, Cham. https://doi.org/10.1007/978-3-030-05423-6_5
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