Volume 3 Issue 1 2007


Noor Muhammad Jamali
Department of Commerce, University of Sindh, Jamshoro

Rizwana Chang
Department of Mass Communication, University of Sindh, Jamshoro

Abstract This paper analyzes the 'democratization of finance' or the promise that all households can make money and/or manage risk by buying appropriate financial services products. It develops a distinctive cultural economy perspective by focusing first on the visions which encourage and rationalize broader and deeper relations between households and the capital market before then exploring the reasons for discrepancy between what is promised and what can be delivered. Our analysis starts from the economic promises and political pitches for the democratization of finance since the early 1990s and the corollary emphasis on promoting mass financial literacy. The article then identifies three key social preconditions which must be satisfied before the promise is delivered and presents evidence and argument which suggests that these conditions are not met because the context is confusing, individuals lackcalculative competence and products are opaque. Under these conditions felicitous outcomes are uncertain for existing middle class savers and very unlikely for lower income groups.
Keywords Risk Management, Asset Portfolio, Capital Market, Financial Literacy
Year 2007
Volume 3
Issue 1
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification -
DOI https://doi.org/10.46745/ILMA.jbs.2007.31.03
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Manuscript Processing Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/3.1/3.%20Poverty%20Alleviation%20A%20Critical%20Analysis%20of%20Causes%20&%20Remedies%202001-2005.pdf